2nd Trudeau Minister Resigns as Canada’s Political Crisis Swells

2nd Trudeau Minister Resigns as Canada’s Political Crisis Swells

OTTAWA — Another minister in the cabinet of Prime Minister Justin Trudeau of Canada quit in protest on Wednesday over accusations that he and his aides tried to influence a criminal case against a multinational Canadian company accused of bribing the Libyan government.

The unexpected resignation, by Jane Philpott, who led the treasury board, inflames a growing political crisis that has already cost Mr. Trudeau his former justice minister and his top aide.

“I’ve been considering the events that have shaken the government in recent weeks and after serious reflection, I have concluded that I must resign as a member of cabinet,” said Ms. Philpott, who was also a former health minister and minister of Indigenous affairs.

In a statement, Mr. Trudeau thanked Ms. Philpott “for her years of service to Canadians and her dedication.” He is expected to address the controversy on Monday night at a fund-raiser in Toronto.

With a federal election looming seven months away, Mr. Trudeau must now not only salvage his reputation as someone who promised an open approach to politics, but may be in peril of losing control of his position as leader of the Liberal Party, which would end his time as prime minister.

On Monday, Andrew Scheer, the Conservative leader, repeated his call for Mr. Trudeau to step down and called on other cabinet ministers to follow Ms. Philpott’s example.

In announcing her decision, Ms. Philpott cited accusations that Mr. Trudeau and his aides had exerted improper and excessive pressure on the justice minister and attorney general at the time, Jody Wilson-Raybould, to seek a settlement in the criminal case against the company, SNC-Lavalin.

A criminal conviction would have barred the company from bidding on government contracts for a decade, potentially leading to major job losses in Quebec, where it has its headquarters.

[You can read more here about the SNC-Lavalin case and how it has entangled Mr. Trudeau.]

Ms. Wilson-Raybould resisted the pressure, and quit the cabinet last month. Ms. Philpott was among the few cabinet ministers to publicly side with her.

“There can be a cost to acting on one’s principles, but there is a bigger cost to abandoning them,” Ms. Philpott wrote in her resignation letter to Mr. Trudeau on Monday.

Privately, several members of his caucus have said Mr. Trudeau has badly fumbled his handling of the controversy. Publicly, though, they have spoken in solidarity with the prime minister.

Royce Koop, a political scientist at the University of Manitoba in Winnipeg, said that might now change.

“Philpott was really the talent pool of the Trudeau cabinet, she got things done,” he said. “The question now is do we now start to see the beginning of a caucus rebellion? I haven’t heard that anything is happening. But this is going to shift opinion in the caucus.”

But Professor Koop said he’s seen nothing to suggest that Ms. Wilson-Raybould was trying to lead a movement to eject Mr. Trudeau as the party leader and, thus, prime minister.

Both Ms. Wilson-Raybould and Ms. Philpott, who was a doctor before entering politics in 2015, were recruited by Mr. Trudeau to enter politics in the 2015 election. Neither has developed a strong political machine to support their new careers.

Both former ministers worked closely together on some of Mr. Trudeau’s signature achievements, including the legalization of medical marijuana and, before that, right-to-die legislation. Both say they intend to remain in the Liberal caucus.

Mr. Trudeau’s troubles began nearly a month ago when The Globe and Mail, citing anonymous sources, said Mr. Trudeau and his aides had improperly pressured Ms. Wilson-Raybould to use a newly created law to work out a settlement for SNC-Lavalin that would have seen it pay a substantial fine to avoid a criminal conviction.

Canadian authorities have accused the company of paying 47.7 million Canadian dollars in bribes to officials in Libya to win contracts there, and defrauding the Libyan government and its agencies of 129.8 million Canadian dollars.

In January, Ms. Wilson-Raybould was moved by Mr. Trudeau from justice minister and attorney general to veterans affairs minister, which many saw as a demotion and a slight to the one remaining Indigenous member of the cabinet. On Feb. 12, she resigned.

Last week in testimony before the House of Commons’ justice committee, Ms. Wilson-Raybould described 10 meetings, 10 conversations and a series of email exchanges in which Mr. Trudeau, his senior aides and others, in her view, improperly pressured her to cut a deal with the company.

She testified that while no one broke the law they crossed informal lines in Canada that are supposed to isolate prosecutors from politics by mentioning the potential political consequences for the Liberals of shutting SNC-Lavalin out of government business.

Mr. Trudeau has said he disagrees with Ms. Wilson-Raybould’s characterizations of events. Several senior Liberals have said that many others share his view.

Gerald Butts, a close friend of Mr. Trudeau’s who quit as his top political aide after the initial news articles about the accusations, is set to testify before a parliamentary committee on Wednesday.

Ken Coates, a political historian at the University of Saskatchewan in Saskatoon, said Ms. Philpott’s resignation was the most significant act of cabinet revolt in about 50 years.

“To have a minister not directly involved in all this stand up and resign — it’s astounding,” Professor Coates said. “We’re now in a new world.”

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