Spending scandal fingers St. John's businessman

A St. John's man has been charged in the house of assembly spending scandal that involved millions in misused public dollars and representatives of all three parties.

In a news release, the Royal Newfoundland Constabulary said St. John's businessman John William Hand, 68, was arrested last week in connection withcharges offraud over $5,000, frauds on the government and breach of probation.

Hand turned himself into police last Friday. The charges were officially enteredat provincial court in St. John's Thursday.

Police have been investigating financial irregularities in Newfoundland and Labrador's legislature since 2006, when the province's auditor general, John Noseworthy, asked police to look into what he described as irregular spending.

Hand is the owner and operator of Zodiac Agencies and is associated with Cedar Scents International and JAS Enterprises. All three companies were referenced in the report of the auditor general.

According to the auditor general's findings, hundreds of thousands of dollars were spent on gold rings, decorative plates and fridge magnets that came from those companies.

The companies got $2.65 million dollars in public money all, or most of it, allegedly through fraud, according to the auditor general.

Hand is due back in court Dec. 16.

Four former politicians and a public servant have been charged with fraud-related crimes in the scandal.

Progressive Conservative Ed Byrne and Liberal Wally Anderson both pleaded guilty.

Byrne received a sentence of two years less a day, while Anderson received a 15-month sentence.

Former New Democrat Randy Collins also pleaded guilty and will be sentenced in December.

Charges against Liberal Jim Walsh and the legislature's former financial director Bill Murray are still before the courts.