Two of the companies involved in a fibre optic network that has attracted $15 million from the Newfoundland and Labrador government donated generously to the governing Progressive Conservatives, electoral office data show.

Rogers Communications and Persona Communications partnered with MTS Allstream for a $52-million proposal to construct a second fibre optic network connecting the island with mainland Canada.

Opposition politicians have accused Newfoundland and Labrador Premier Danny Williams of favouring a business deal involving former associates.
(Jeff McIntosh/ Canadian Press)

Data filed by the provincial Chief Electoral Officer show that Persona donated $9,500 to the PCs in 2005 alone, while Rogers donated almost $12,000.

Neither company made a donation to the Liberals or the NDP in 2005, nor did they do so in the preceding year.

In 2004, Persona donated $4,500 to the PC party, while Rogers companies donated almost $15,000.

The donations make the companies some of the largest contributors to the Tory party. The provincial Elections Act does not set limitations on how much a company may donate to a party.

Premier's connections questioned

The Liberal Opposition has already criticized Premier Danny Williams and his government for backing an untendered, unsolicited project in which two of his former key business associates are involved.

Dean MacDonald, the president and chief executive officer of Persona, and Ken Marshall, a Rogers vice-president, worked for Williams at Cable Atlantic, which he sold to Rogers before entering politics.

'I suspect, had I not been involved, this thing would have happened a long time ago.'- Dean MacDonald

Both MacDonald and Marshall are listed as directors of companies held in a blind trust created when Williams took office as premier.

Williams no longer holds shares in Rogers, and government officials have steadfastly denied suggestions of favouritism.

In fact, MacDonald said his presence in the deal actually held up its approval.

"I suspect, had I not been involved, this thing would have happened a long time ago," MacDonald told CBC News.

He said the proposal went through all the proper channels before cabinet approved it. The government says Williams excused himself before cabinet gave final approval.

"When you look at the economic benefits, the security issues, everything related to this project — it's all good news," he said.

Duff Conacher, co-ordinator of the Ottawa-based advocacy group Democracy Watch, finds political donations by companies cause for concern.

"We hear of these cases all the time, where corporations get to jump to the front of the line and get their concerns and [the] problems they see addressed way before citizens do," he said.