PM's ex-aide in lobby scandal; funds reportedly went to his "escort" fiancée

There are new developments in the lobbying scandal rocking Parliament Hill involving a former aide to the Prime Minister and his fiancée, a former escort.

Bruce Carson, of Calgary, is accused of lobbying the Indian Affairs Department in a potential deal that would have net millions for 22-year-old Michele McPherson.

According to federal law, a person cannot lobby for a period of five years after leaving government; Carson last advised the Prime Minister in 2009.

The project involved building water filtration systems for First Nations communities where boil water advisories are in place.

In an investigation by the Aboriginal Peoples Television Network, McPherson's name appears on a "secret" contract, receiving 20 per cent of all gross revenue.

The 66-year-old is accused of using his political connections to secure the contract from the federal government.

Carson currently splits his time between Ottawa and Calgary; until recently, he was working as the Executive Director of the Calgary-based Canada School of Energy and Environment.

In an online statement this week, he said he would be taking a leave of absence from his professional responsibilities until an investigation by the RCMP has concluded.

The former aide is also accused of boasting about his political connections and insider access to the Prime Minister and Indian Affairs Minister John Duncan, something both men deny.

Mount Royal Political Scientist Dr. Keith Brownsey tells 660News none of this is good for the Conservative Party.

"It's a huge, huge black mark for them," he says. "It's going to affect everything in this country, including the expected election call."

Brownsey says we may see some compromise now on the part of the government, adding he's not sure what the best way to handle this will be.

"Whether he should come out forth-with and say something to the effect of 'we should investigate this, launch an inquiry,' all those sort of things or whether he should simply say this is a matter for the police and move on from there; that's up to him and his advisors," he says.

Carson says he has obtained legal counsel to protect his reputation and because the investigation is ongoing, he will not be making any further comment.