Wallin’s travel expenses — $321,000 since September 2010 — have been the subject of an external audit since December.

In a brief written statement, Wallin — a former CTV broadcaster — says she has been co-operating fully with the auditors and had expected the process to be complete by now.

Since it is ongoing, Wallin says she’s decided to recuse herself from the Conservative caucus.

The decision comes after fellow former broadcaster Sen. Mike Duffy stepped down from the Tory caucus Thursday amid controversy about his housing expenses — and where he got the money to pay them back.

The Prime Minister’s Office admitted earlier this week that Nigel Wright, Stephen Harper’s chief of staff, footed the $90,000 bill for Duffy.

Outside his Etobicoke home on Friday morning, Ford spoke to a group of waiting reporters, saying “Absolutely not true…it’s ridiculous.”

He then shook his head, got into his vehicle and drove away.

On Friday, reporters at The Toronto Star said they have seen a video that appears to show Ford using drugs.

In its report, the Star said two of its reporters had watched the video on May 3 that it said showed an intoxicated Ford in a room, sitting in a chair, and lighting and smoking from what appeared to be a glass crack pipe.

U.S-based gossip website Gawker.com said Thursday night that the video is being shopped around by a group of men allegedly involved in the drug trade.

The Toronto Star said, however, it had no way to verify the video.

Deputy mayor Doug Holyday said he does not believe the shocking published reports.

“Videos can be altered and drug dealers can’t be trusted. I don’t know what we’re dealing with here and until we do I don’t really have much to say,” Holyday said at city hall Friday.

“I have not seen any indication of him using any substances like this or anything else for that matter,” he later added.

It’s just the latest in a series of scandals plaguing Ford’s administration that have distracted from issues like public transit, the expansion of Porter airlines and a now-quashed downtown casino.

In March, the Star reported that Ford was asked to leave the Garrison Ball at the Liberty Grand at Exhibition Place because he appeared to be impaired. Earlier that month, former mayoral candidate Sarah Thomson alleged Ford made inappropriate comments towards her and then grabbed her buttocks – both of which Ford adamantly denies.

Meanwhile, Holyday also told reporters Friday morning that he believes the mayor is fit for the job but, “if these accusations were substantiated, that would change a lot of things.”

“I have no knowledge, I have not seen any indication of him using any substances like this or anything else for that matter,” Holyday said.

The Star said Friday it had seen the tape on May 3 but the paper waited to publish the story.

The Star said two of its reporters watched the video and said it appears to show Ford in a room, sitting in a chair and using drugs.

The Star also alleges Ford makes several disparaging and crude remarks about Liberal Leader Justin Trudeau and the high school football team he coaches.

A lawyer retained by Ford, Dennis Morris, told the newspaper that Thursday’s publication by the Gawker website of some details related to the video were “false and defamatory.”

Holyday was also asked whether he thinks these recent allegations will hurt the city’s reputation.

“It certainly isn’t helpful [to the city's reputation]. Whether you can blame the mayor or not depends on whether the story is true. I don’t know that and I don’t know that many of you do,” he said.

“There’s a large contingent of political people that want the mayor out of office. They don’t want him to make the changes that he’s been making. I agree with the changes that he’s been making and the agenda he’s put forward.”

Attempts by 680News to contact the mayor and his staff for comment on the allegations were unsuccessful.

With files from The Canadian Press

The Criminal Code Review Board has ruled that Vince Li can go on more escorted day trips from the Selkirk Mental Health Centre where he is in custody.

Li was already allowed short escorted visits into the nearby community of Selkirk, but soon will be able to make supervised, full-day trips farther afield to Lockport and Winnipeg and nearby beaches.

The board also says Li can be unescorted on the grounds of the mental hospital starting at 15 minutes at a time and working up to full days.

The ruling from the review board says that the expanded privileges, which are to begin next Friday, can continue under the condition that Li “comply with all directions of and continue to take medication prescribed by his treating psychiatrist or designate.”

Li’s psychiatrist told the review board at a hearing last week that the 45-year-old Li hasn’t had hallucinations in more than a year and is a low risk to reoffend. Li’s status is reviewed annually by the board.

He was an undiagnosed schizophrenic when he stabbed and beheaded Tim McLean and ate parts of his body in July 2008.

Dr. Steven Kremer said his patient has made “excellent improvement” since the attack. Kremer said Li takes his medication, has had no problems with staff or other patients and realizes he needs to stick to his treatment.

Li was initially confined to a locked wing of the hospital, but in 2010 was granted the right to escorted walks on hospital grounds. Last year, he was given the right to escorted day trips into Selkirk. He had to be accompanied at all times by a security guard and a staff member.

The Crown did not oppose the proposal’s main points at last week’s hearing, but asked that staff accompanying Li be required to have cellphones at all times. The review board agreed.

Carol DeDelley, McLean’s mother, has repeatedly said Li should remain locked up for the rest of his life.

“I just believe that (Li) ought to remain where he can get the care and treatment he requires and we can all feel safe,” DeDelley said after the hearing.

Li’s attack on McLean was unprovoked. The two men were strangers when Li sat down next to the 22-year-old carnival worker who was riding a bus to Winnipeg from Edmonton. McLean had his eyes closed and was listening to music on his headphones when Li suddenly stood up and started stabbing him.

The bus stopped and horrified passengers fled as Li carved up McLean’s body.

Thirty-five-year-old Chona Manzano and five-year-old Gabriel Manzano were found dead Thursday in a home on the northwest edge of the city.

Police say they soon began looking for a vehicle associated with the home.

Mounties pulled it over on a highway about 90 kilometres north near Olds and took the driver into custody.

Police say the suspect is related to the dead but is not an immediate family member and did not live in the same home.

Guevara Wilson Clorina, who is 26 and from Calgary, faces two counts of second-degree murder.

He is to appear in court next Tuesday.

— Aug. 19, 2010: As the campaign heads into the home stretch, Ford holds a news conference to discuss a 1999 arrest for marijuana possession in Florida. He ultimately pleaded guilty to driving under the influence and failing to give a breath sample to police.

— June 2011: Ford angers the city’s gay community by declining to attend either the city’s gay pride parade or the flag-raising ceremony to kick off Pride Week. Ford said he would be at the family cottage for the parade. His decision broke with tradition that saw the city’s three previous mayors march in the parade.

— Jul. 26, 2011: A Toronto woman accuses Ford of giving her the finger after she asked him to get off his cellphone while driving. Ford says the incident was a misunderstanding.

— Oct. 5, 2011: Another woman accuses Ford of talking and texting on his cellphone while behind the wheel. Calls flood in for the mayor to hire a driver, but Ford declines and describes such an expense as a waste of taxpayer dollars.

— Oct. 25, 2011: Ford makes numerous calls to 911 after being accosted by a crew from CBC’s “This Hour has 22 Minutes.” Ford says he felt threatened by the presence of the crew and alleges they scared his daughter.

— Mar. 12, 2012: Toronto resident Paul Magder launches a lawsuit alleging Ford had a conflict of interest when he voted on a council matter involving his football charity. The matter eventually worked its way to court where Ford was found guilty of the charge, only to have the ruling overturned on appeal.

— May 2, 2012: Ford calls police after a confrontation with Toronto Star reporter Daniel Dale. Ford alleged Dale was spying on him at his home, while Dale contended he was on public property next door doing research for a story. Dale alleged he was physically threatened by the mayor, a claim Ford denied.

— Sept. 19, 2012: While on an official visit to Chicago, Ford mistakenly identifies Winnipeg as a city located across the border from Detroit. Winnipeg Mayor Sam Katz volunteered to give his Toronto counterpart some geography lessons, since Winnipeg is roughly 1,800 kilometres from where Ford had said.

— Nov. 6, 2012: Ford comes under fire after a Toronto Transit Commission bus was emptied of passengers and rerouted to collect his football team. Police say the decision to commandeer the bus was made by an officer and not Ford. Ford himself placed at least two calls to the head of the TTC requesting information on the bus when it failed to show up as promptly as expected.

— Mar. 8, 2013: Ford vehemently denies allegations from former mayoral rival Sarah Thomson that he touched her inappropriately during a political dinner. Thomson claimed the mayor was behaving oddly and made suggestive remarks before grabbing her.

— Mar. 24, 2013: Ford calls into a local radio show to complain about the defence tactics used in a high profile court case. Ford scorned the “not criminally responsible” defence that was successfully used on behalf of Richard Kachkar, who killed a Toronto police officer while driving a stolen snowplow. Ford’s comments drew criticism from the defence lawyer, who called them “prehistoric” and took the mayor to task for speaking out as deliberations began.

— Mar. 26, 2013: Ford denies a Toronto Star report that he was turfed from an official dinner due to drunkenness and an ongoing battle with alcohol addiction. Ford described the story as an “outright lie.”

— May 16: Reports surface in U.S.-based news site Gawker and later in the Toronto Star that Ford was seen on video smoking what appears to be crack cocaine. The Toronto Star also reported that Ford can be heard referring to Liberal leader Justin Trudeau in disparaging terms. The video could not be independently verified. Ford calls the drug video allegations “ridiculous.”

The office of government Senate leader Marjory LeBreton confirmed Friday that senators want the report on Duffy’s expense claims brought back before the committee on internal economy.

That committee tabled the original reports last week into the expenses claimed by senators, including independent audits of claims made by Duffy, Sen. Patrick Brazeau and Sen. Mac Harb.

But the audit into Duffy’s claims was incomplete. The senator from P.E.I. refused to comply with auditors after he declared in March he was paying back more than $90,000 worth of questionable expenses.

That forced the auditors to concede in their report that they could not paint a complete picture of Duffy’s expense claims.

The Canadian Press reported Thursday that Duffy campaigned for the Conservatives during the April 2011 election while claiming to be on Senate business.

“In light of yesterday’s media reports regarding Sen. Duffy’s expense claims, senators will be asking that the report concerning Sen. Duffy be referred back to committee for further examination taking into account this new information,” a spokesperson in LeBreton’s office said.

Duffy resigned from the Conservative caucus late Thursday to as controversy raged over the expense claims.

“Throughout this entire situation I have sought only to do the right thing,” he said in a statement. “I look forward to all relevant facts being made clear in due course, at which point I am hopeful I will be able to rejoin the Conservative caucus.”

How those facts will be made clear is unknown. Duffy’s office didn’t immediately return calls from The Canadian Press.

The Conservative-led committee had tried to force a vote last week that would have closed the door on the reports, but the Liberals refused to agree. As a result, the Senate can reopen the matter.

How they will proceed could be determined Tuesday when the Senate resumes discussion of the report. The committee could presumably ask Duffy to produce the information he refused to submit when he stopped co-operating with the audit process.

Meanwhile, the ethics commissioner is also involved, looking into precisely how Duffy came up with the $90,000 required to pay back his claims.

The prime minister’s chief of staff, Nigel Wright, cut Duffy a personal cheque for the precise amount that was owing, an act which appears to be in violation of ethics rules that prohibit senators from accepting gifts.

Duffy has also suggested he took out a bank loan to cover the expense.

“Our office is in contact with the office of the ethics commissioner for one angle and Sen. Duffy has some questions to answer, but he’ll answer those as an independent senator now,” Andrew MacDougall, a spokesman for the prime minister, said Friday.

Meanwhile, Wright’s position remains secure, MacDougall said.

“The prime minister has full confidence in Mr. Wright,” he said. “Mr. Wright is staying on.”

Meanwhile, Sen. Mac Harb — formerly a Liberal who is now independent —is contesting the Senate demand that he repay $51,482 in housing-related expenses.

Sen. Patrick Brazeau is also fighting the Senate’s demand that he repay $48,744 in housing expenses, and is asking for a public meeting with the secretive committee that’s making the demand.

MacDougall said neither senator was offered the same financial assistance as Duffy.

The New Democrats, meanwhile, want the investigation expanded.

They’ve written to Elections Canada asking them to determine whether Duffy — and possibly other senators — have broken election laws.

The NDP wants to know if Duffy charged the Conservative campaign for his travel during the writ period in 2011 or whether those costs were borne by taxpayers as part of his Senate expenses.

That would be an unclaimed campaign expense, said NDP MP Craig Scott, the party’s critic for parliamentary and democratic reform and author of the letter.

“Given that Sen. Duffy apparently refused to co-operate with the Deloitte auditors and reportedly failed to fully disclose details regarding his whereabouts and activities during the 2011 election campaign, we are asking that you initiate an investigation to determine whether any money was improperly used or concealed by Sen. Duffy, the Conservative Party of Canada or any of the local campaigns involved.”

The letter also names at least four other senators who were noted as being on the campaign trail but haven’t fully disclosed their expenses.

“I trust that you will launch an investigation into these troubling allegations to determine whether the Canada Elections Act has been violated, and ensure that anyone who broke the rules faces the full consequences of the law,” Scott writes.

In the warrants, Const. Stacy Humphrey of the Saint John Police Force alleged that Dennis Oland was the prime suspect.

The suspect’s name  identified by police in search warrant documents  had been protected by a publication ban, but a decision released today from the Court  lifted the order.

Oland who was 69, was found  dead in his uptown office on July 7, 2011.

No charges have yet been laid  by city police

The parliamentary budget officer’s latest analysis of the government’s spending estimates shows the Crown corporation will cost the public purse an additional $236 million this year, bringing the total to $362 million for 2013-14.

The additional money is for AECL’s research and development program.

The federal budget watchdog says although Ottawa’s support for the troubled nuclear agency has decreased by 60 per cent over the last four years, the booked savings in terms of direct support for operations is misleading.

At the same time, AECL’s losses have ballooned: from $300 million in 2009-10 to $3 billion over the first three quarters of 2012-13.

“As a wholly-owned Crown corporation, the government of Canada is ultimately responsible for AECL’s liabilities,” the PBO points out.

Overall, the report calculates that the government will spend $1.1 billion more during the current fiscal year than what was contained in the main estimates issued in early March. That will bring spending for the 2013-14 fiscal year to about $253.6 billion.

Other adjustments include increases to transfer payments and subsidies to Crown corporations, including a $99,000 top-up to cover Via Rail’s pension plan deficit.

The report notes that even with the increases, the spending plans for the current fiscal year are $5.4 billion lower than last year, due to government austerity measures introduced in 2012.

The findings suggest that Finance Minister Jim Flaherty is largely meeting his targets for spending, which the government predicts will result in a balanced budget for the 2015-16 fiscal year.

“As noted in earlier PBO analysis, virtually all of this decrease (in spending) stems from the fiscal strategy to balance the budget through constraining direct program spending, in particularly operating spending by departments and agencies,” the report concludes.

The U.S. website Gawker first broke the story after someone associated with Toronto’s drug trade tried to sell the video to one of its reporters. John Cook didn’t buy the video but watched it and wrote a lengthy post about the attempts to peddle it to him and his own efforts to confirm the story.

The Toronto Star said it saw the video two weeks ago, and while it had no way to verify it, reported that it appears to show the mayor sitting in a well-lit room, inhaling from what appears to be a glass crack pipe.

Ford is also allegedly heard making several disparaging and crude remarks about Liberal Leader Justin Trudeau and the high school football team he coaches.

To a throng of media assembled outside his office on Friday, Ford branded the reports “ridiculous.”

His lawyer, Dennis Morris, told the Star that it’s impossible to determine what anyone’s up to simply by viewing videotape.

“How can you indicate what the person is actually doing or smoking?” Morris said.

Fox News, USA Today, Slate.com and New York magazine were among the American media outlets carrying stories on the latest scandal to plague Ford.

The seamy allegations also caused a social media eruption among American journalists, media watchdogs and news junkies.

The Washington Post’s Chris Cillizza urged Ford on Twitter to “call your office” while linking to the Gawker post that featured a screen grab from the video — the mayor appearing to yuk it up as he stands between two alleged drug dealers.

Many made comparisons to Barry, the notorious former mayor of D.C. who was videotaped smoking crack in January 1990 and quickly arrested by FBI officials on drug charges.

Barry, now a D.C. city councillor, served six months in a federal prison as his infamous proclamations while being arrested — “Bitch set me up!” — became fodder for gleeful late-night comics. “Bitch Set Me Up” T-shirts were hotly coveted souvenirs in the U.S. capital for years after Barry’s arrest.

“Rob Ford is Canadian for Marion Barry,” tweeted Jeff Passan, a baseball writer for Yahoo! Sports.

“Just like Marion Barry, but with flannel!” tweeted a wag named Todd Bentley in New Jersey.

Even Barry himself weighed in on Ford.

“Unless he was entrapped by the government, it’s not similar,” Barry told the Washington City Paper, a D.C. news website.

Ford, if guilty, can take some solace in Barry’s troubles — the D.C. politician was returned to the mayoralty in 1994, serving from 1995 to 1999.

But a movement called Stop Marion Barry, which says it’s been “setting the record straight on Marion Barry’s failed leadership since 2004,” pointed to the Ford scandal as further evidence of the former’s D.C. mayor’s sorry record.

“What a legacy. A big city mayor caught smoking crack and everyone immediately thinks of @MarionBarryJr.,” the group tweeted on Friday.

Earthquakes Canada again revised its original report Friday, saying it registered a 5.2-magnitude temblor with an epicentre located about 17 kilometres northeast of Shawville, Que., about an hour’s drive outside the national capital.

The first report said a 4.8 magnitude quake was centred near the town of Braeside, Ont., Updates raised that to 5.1 and then 5.2 and shifted the epicentre as the agency fine-tuned its data.

Less than 10 minutes after the first quake, a 4.2-magnitude aftershock was also recorded.

The original quake was powerful enough to shake the big stone and brick building that houses the municipal offices in Shawville, said the community’s mayor.

“The windowsill, the walls seemed to shift up and down,” Mayor Albert Armstrong told The Canadian Press. “My cabinet behind me was shaking and twisting.

“I’ve lived here all my life and I’ve never witnessed one like that before.”

The quake touched off an eruption of reaction on Twitter as users reported buildings shaking in Ottawa for several seconds; it was also felt in Toronto.

Ontario Provincial Police in Arnprior, Ont., not far from the epicentre, said they had received no reports of damage.

The quake was slightly stronger than the last one of significance to hit the region — a magnitude 5.0 earthquake that was felt on the afternoon of June 23, 2010.

That quake’s epicentre was situated in the area of Buckingham, Que., about 56 km north of Ottawa.