Liberal MP Idlout Violated Conflict of Interest Code, Ethics Commissioner Finds

Liberal MP Lori Idlout contravened federal conflict-of-interest rules by seeking reimbursement for purchases made at a business she owns and another owned by her spouse, according to a new report from Canada’s ethics commissioner.

Conflict of Interest and Ethics Commissioner Konrad von Finckenstein released the findings on Sept. 2 following an investigation into expenses Idlout charged to the House of Commons. The report found that Idlout breached Section 8 of the Conflict of Interest Code for MPs by seeking reimbursement for five purchases from an art gallery she owns, as well as accommodation at a bed and breakfast owned by her spouse.

However, the commissioner recommended that no sanctions be imposed, concluding that Nunavut MP’s actions resulted from “an error in judgment” made in good faith rather than an intentional effort to benefit herself or her spouse.

“Since Ms. Idlout had not received any income from the business she owns in several years and was not involved in managing it, she did not consider that purchases made there for legitimate parliamentary purposes would further her private interests,” the report reads.

“With respect to the expenses made at her spouse’s bed and breakfast, she and her staff stayed there for lack of another option. In my view, Ms. Idlout made an error in judgment in good faith because it never occurred to her that her actions would result in the furthering of private interests.”

Idlout acknowledged the report’s findings and thanked the commissioner for the report, saying she had submitted the items in error and had already paid the back the funds.

“I have respect for the role of the Commissioner and the importance of the Conflict of Interest Code for Members of Parliament in maintaining public trust in our institutions,” Idlout wrote in a Sept. 2 statement provided to the Epoch Times.

“I acknowledge the Commissioner’s findings and take this matter seriously. As found by the Commissioner, I made an error in judgement in good faith by claiming these expenses.”

Idlout was elected as an NDP MP in 2021 and won re-election in April 2025, before crossing the floor to the Liberals in March 2026. She stated at the time that she felt the challenges facing Nunavut could be better dealt with within the governing party.

Investigation

The investigation into the expenses started after Conservative MP Michael Barrett wrote to the ethics commissioner in March, saying that Idlout had claimed expenses for gifts purchased from a gallery she owns in Iqaluit, called Carvings Nunavut Inc.

The inquiry carried out by the ethics commissioner identified the improperly reimbursed expenses as protocol gifts bought for political leaders, community figures, indigenous leaders, and other dignitaries.

The expenses included a $150 wall hanging, a $150 lapel pin, $76 of miscellaneous gifts and $1,380 worth of various sculptures and crafts bought for First Nations leaders, elders, and speakers attending an NDP national caucus meeting in Parksville, B.C., in September 2025.

A fifth purchase valued at $300 of a sealskin tie and traditional carving were bought in April 2024 for the retirement of Nunavut Chief Justice Neil Sharkey.

The lodging expense covered a one-night stay from March 4 to 5, 2025, when Idlout and two of her employees stayed at her spouse’s bed and breakfast, Al’s B&B Inc., in Igloolik, Nunavut, after her office said other accommodations were unavailable.

The report notes that Idlout repaid the money for the reimbursements earlier this year after being contacted by a journalist about the expenses, amounting to $2,056 for five purchases from her own gallery.

In June, she repaid an unspecified cost for three rooms at her spouse’s bed and breakfast in Igloolik, Nunavut, after the matter came up in the ethics commissioner’s investigation.

Idlout said her effort to repay the reimbursements demonstrated her good faith.

“As soon as these were brought to my attention, I immediately reimbursed all of these claimed expenses, demonstrating a true desire to fully rectify these errors,” she said.

“At the time, I did not consider that these purchases made for legitimate parliamentary purposes would further private interests, as I receive no income from the businesses in question.”

Past Warnings

The report noted that Idlout was previously cautioned by her ethics compliance advisor in December 2022 about conflict of interest rules, and told that she “could not purchase gifts from the indigenous art gallery she owns with her Member’s Office Budget.”

Notes from the advisor state that Idlout was “very much aware of this,” while Idlout told the ethics commissioner that she recalled the conversation in general but not that specific piece of advice.

Idlout said she has had no involvement in daily operations at the gallery since she began law school in 2014, and has not gotten any income from it since entering politics. She said income from the gallery is used to cover the cost of running the business and to procure more Inuit art.

Idlout said she plans to ensure compliance going forward.

“I regret my error in judgement,” she told the Epoch Times. “I have since learned from this experience and will work closely with the Commissioner’s guidance going forward.”

There is no predetermined fine or default penalty for breaching the Conflict of Interest Code. While the ethics commissioner can recommend an “appropriate sanction” it must be imposed by the House of Commons.

In prior cases, Liberal MP Yasmin Ratansi was determined in 2021 to have improperly benefitted her foster sister’s interests by giving her a job, but the ethics commissioner also recommended no sanctions be imposed. In 2020, Liberal MP James Maloney was found to have breached the Code for a disclosure violation and was asked by the commissioner to apologize to the House, which he did.