Flaherty says unaware $122,000 speech contract to supporter improper

Jim Flaherty has told a parliamentary committee he did not know the $122,000 contract was improper until July 24 - more than four months after the speech - despite warnings from bureaucrats.

Flaherty said he delegated responsibility for administrative functions to his then-chief of staff David McLaughlin, who hired Hugh MacPhie.

Contracts worth more than $25,000 must be tendered under Treasury Board guidelines.

Opposition MPs at the committee said the contract amounted to patronage and asserted that MacPhie would not have gotten the job without his strong Tory ties.

MacPhie is a former speechwriter for Ontario's former Conservative premier, Mike Harris, and once worked on Flaherty's leadership bid.

Flaherty said he now realizes department officials expressed concerns about the contract to McLaughlin, but he was not informed. He said he was "upset" when he learned, but said that by that time McLaughlin was preparing to leave his office.

McLaughlin was not immediately available for comment.