Two of three senior civil servants identified as having received money from P.E.I.'s Provincial Nominee Program will return it.

Peter MacQuaid, who was chief of staff for former premier Pat Binns, and Brooke MacMillan, who was deputy minister of innovation — the department responsible for PNP — during much of 2008, and was moved to be CEO of the P.E.I. Liquor Commission shortly before making his PNP application, have both said the money they received will be returned.

In a statement faxed to CBC News, MacQuaid said he received money from the immigrant partner section of the PNP for MacQuaid Motors, which he held shares in.

"I made no attempt to influence the application; rather, I was convinced the applications would stand on its own merits,' wrote MacQuaid.

The contracts to receive the business investment from a potential immigrant were signed in November 2005. MacQuaid said he accepts the interpretation of conflict of interest guidelines by the auditor general, and will return the money. If returning it is not possible, he said he would give it to charity.

Auditor General Colin Younker said in his annual report that three deputy-minister-level civil servants and/or their family members had received benefits from the PNP. Under Treasury Board guidelines, he said, the appearance of a conflict of interest was a conflict.

"Although I in no way attempted to influence the company's approval for PNP investment, I do accept the auditor general's interpretation," wrote MacQuaid.

"I have been advised by my lawyer that there may be difficulty in finding a process to return the funds. Should that be the case the monies will be donated to local charities.

MacQuaid noted that the company, MacQuaid Motors, had met all the obligations connected to the agreement.

Dorsey defends wife's involvement

The third civil servant, Pat Dorsey, who was in charge of policy and planning for Pat Binns, has issued a statement defending the successful application from a company owned by his wife for PNP money.

Dorsey said he was never a shareholder, officer or director in the company.

"I did not at any time, including during the application and approval process in respect of Cumberland Investments, discuss the company or its participation in the PNP Program with the premier, the minister, the deputy minister, or any staff members in the department," Dorsey wrote.

"The application was considered by the department on its own merits."

Liberal deputy will return money

MacMillan has said he would return the money after being asked to by Ghiz.

Ghiz said he would be tightening up the rules for deputy minister involvement in government programs, and he felt that in MacMillan's case he should do more.

"I still felt that I should go a little bit further to take him out of that perceived conflict, and I asked him last night if he would reverse the transaction, and he indicated to me that he would," said Ghiz.

MacMillan said he was not ready to comment when contacted by CBC News, but that he may have a statement next week.