Prime Minister Stephen Harper's chief of staff Nigel Wright wrote a personal cheque worth more than $90,000 to pay back Senator Mike Duffy's living expenses, Harper's office confirmed Wednesday.
"Mr. Duffy agreed to repay the expenses because it was the right thing to do," Harper's spokesman Andrew MacDougall said in a statement.
"However, Mr. Duffy was unable to make a timely repayment. Mr. Wright therefore wrote a cheque from his personal account for the full amount owing, so that Mr. Duffy could repay the outstanding amount."
The confirmation came following a CTV News report Tuesday night said that Wright intervened to arrange a deal with Duffy that involved him reimbursing taxpayers $90,172 in return for helping him financially and assuring him that the government would go easy on him.
Before his Ottawa appointment, Wright, a Harvard-educated lawyer, was the managing director of Onex, a private equity firm with assets worth $44 billion.
It is not expected that the money will be repaid to Wright. Conservative Party spokesman Fred DeLorey told CBC News that the party has not reimbursed Wright for his payment. Earlier in the day he had confirmed that the party had not covered Duffy's expenses.
"We didn't pay any of the money he reimbursed for living expenses," DeLorey said in an email. "No party money involved in any way," he said in another email.
MacDougall wrote on Twitter on Tuesday night that "no taxpayer funds were used" in Duffy's repayments.
Duffy was asked Wednesday morning for comment and declined.
Duffy, a senator from Prince Edward Island who owns a home in Ottawa, was one of three senators whose living allowance expenses were being reviewed by the external auditing firm Deloitte. He voluntarily repaid $90,172 in March, weeks before the audit was released last week. Senator Patrick Brazeau, a former Conservative, and Liberal Senator Mac Harb are the other two senators whose expenses were questioned.
The CTV report cited an email from Feb. 20 in which Duffy said Wright worked out a "scenario" where his claimed living expenses would be covered, including money for the repayment. Two days later, Duffy publicly said he may have made errors filling out the claim forms that declared his P.E.I. home as his primary residence and that he would pay some money back.

RCMP examining expense claims

Senators are eligible for a housing allowance of up to $22,000 per year to cover accommodation while they're working in Ottawa, if their primary residence is more than 100 kilometres from the capital.
Duffy did not co-operate with the Deloitte audit. It noted that he had already paid money back for the housing allowance, but also said he improperly claimed per diem expenses while he was in Florida for non-Senate business. Duffy has also paid back $1,050 for what he explained as a clerical error.
Harper's office said Wednesday that it believes taxpayers should not be on the hook for Senate expenses that are improperly claimed.
"The independent external audit by Deloitte looking into Senate expenses was completed and the results tabled. Mr. Duffy has reimbursed taxpayers for his impugned claims. Mr. Harb and Mr. Brazeau should pay taxpayers back immediately," MacDougall said.
Brazeau, who now sits as an Independent after being forced out of the Conservative caucus because he is facing criminal charges for sexual assault, said Tuesday he doesn't think he should pay any money back. The Senate wants him to reimburse taxpayers about $48,000.
The report recommends that Harb repay $51,000 for housing and mileage claims dating from April 2011.
The RCMP said it is examining senators' expense claims following the Deloitte reports, and "may or may not" initiate an investigation.
The NDP jumped on the newest revelations about Wright's involvement, issuing a statement that called for an independent investigation to look into "unethical behaviour and coverups" inside Harper's office.
"Conservatives must agree to an independent investigation into these troubling allegations involving his most senior advisers," NDP ethics critic Charlie Angus said in a statement.
"This is a very serious charge against Stephen Harper's right-hand man. The prime minister cannot bury his head in the sand hoping it will go away."
Angus wants the police to investigate whether any laws were broken when Duffy, Harb and Brazeau claimed the expenses.