P.E.I. tourism critic Jim Bagnall raised questions in the legislature Friday about where cheques the province has been writing for tourism research went.

For several years the Tourism Department has partnered with the Tourism Research Centre at UPEI to produce studies on the direction of the Island's tourism industry.

Bagnall said he obtained a document that showed centre director Sean Hennessey had started up a company with same name as the Tourism Research Centre at UPEI. He said cheques were going to Hennessey instead of going to the university, for work done by the university.

The document Bagnall was quoting from was a complaint filed to the Canada Revenue Agency by a former employee of the Tourism Research Centre — Paul Lewis.

Lewis is suing the university for wrongful dismissal.

Bagnall said in the legislature, "Instead of paying the university you've been paying Sean Hennessey. So how can you justify that?" Bagnall asked Tourism Minister Robert Vessey.

"How many duplicate cheques have you made?"

Bagnall also pointed out the connection between Hennessey and the current deputy minister of tourism, Melissa MacEachern.

"Your deputy is the one that oversees this. She's the one that worked for Sean Hennessey. She's the one that was at the university and worked for TRC," he said.

"She knows the system and yet your deputy is OKing cheques to be written to individuals like Mr. Hennessey, her former boss?"

Bagnall asked if MacEachern had been suspended over the issue. Vessey said that the file was reviewed within the department and "there was not a thing wrong with it".

Vessey said any issue regarding the Tourism Research Centre is one for the university to explore.

"If UPEI and Sean Hennessey have an issue I'd say that's an issue for the university," he said.

Bagnall suggested there was an investigation, but didn't say by whom. CBC confirmed UPEI began an investigation into the allegations several weeks ago.

Bagnall also asked if the minister would turn the file over to either the auditor general or the attorney general. Vessey said he was confident in the review that had been done.

Vessey wrapped the discussion by saying to Bagnall, "You're going down into the weeds and that's your style."

Late Friday afternoon, the university released a statement from Gary Bradshaw, UPEI's vice-president of finance and facilities.

"UPEI conducted a review of Tourism Research Centre operations and, with his co-operation, Dr. Hennessey's private consulting contracts. With the information that we have, we are satisfied that any contract obligations that the TRC had to the province of P.E.I. have been fulfilled, and that any payment for TRC work has been received by UPEI."

Calls to Hennessey on Friday afternoon from CBC News were not returned.