In one of its last actions before transferring power, the Liberal government has agreed to pay David Dingwall $417,780 in compensation for his dismissal as head of the Royal Canadian Mint.
Privy Council Office announced the payment Saturday following the decision of an independent arbitrator, George Adams, who concluded that Mr. Dingwall had not resigned, as the government suggested at the time, but had been fired.
Mr. Dingwall left the $277,000-a-year-job in September after a prolonged controversy about his six-figure office expense account.
A subsequent review by PricewaterhouseCoopers accounting firm concluded Mr. Dingwall's spending was within the rules with minor discrepancies.
Prime minister-designate Steven Harper said Saturday the Liberals had misled the public where Mr. Dingwall was concerned.
"After months of evasive answers in the House of Commons, we have now learned that David Dingwall's departure from the Royal Canadian mint was involuntary," Mr. Harper said in a statement.
"This is contrary to the information given by the Liberal government. I am very disappointed that Parliament was misled on this matter."
William Stairs, Mr. Harper's director of communications, said he did not think the new government would contest the arbitrator's decision.
"I don't think we can. It was a legal arbitration between two parties."
Mr. Dingwall was at the centre of controversy for weeks last fall after reports that his office had run up expenses of almost $748,000 in 2004.
There was outrage after reports that he had put in an expense claim for a pack of chewing gum. Opposition MPs alleged he had used taxpayers as his "personal ATM."
But the audit found that the Mint's travel and hospitality policies were consistent and rigorous. It also found that 74 per cent of the expense total was for salaries and benefits for four people.
Nevertheless, the opposition strenuously protested suggestions that Mr. Dingwall was owed a severance package.
In October, then-Revenue Minister John McCallum said the government would pay Mr. Dingwall only that which was legally owed him. When the two sides couldn't agree on a figure, they sent the matter to an independent third party.
Adams has ruled Mr. Dingwall's departure as head of the mint was involuntary and the government had a legal obligation to pay him. The government says it has respected the decision.