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Prime Minister Justin Trudeau testifies at parliamentary committee amid ethics probe

By Julie Gordon and Steve Scherer

OTTAWA (Reuters) - Canadian Prime Minister Justin Trudeau said on Thursday during a rare parliamentary committee appearance that a charity with ties to his family, which was picked by his government to manage a major student grant program received no preferential treatment.

The escalating scandal over the C$900 million ($671 million) program granted to WE Charity Canada has hurt Trudeau in the polls, with his Liberal Party slipping to a 4-point lead over the opposition Conservatives, an Abacus Data poll showed Thursday.

The Liberal-led government's popularity had soared amid Canada's response to the COVID-19 crisis.

"WE Charity received no preferential treatment, not from me, not from anyone else," Trudeau said in an opening statement. "The public service recommended WE Charity. I did absolutely nothing to influence that recommendation."

That is in line with the testimony from the civil service to the same committee. Amid the frantic effort to push programs out the door to help Canadians during the pandemic, the civil service recommended WE Charity as the only organization able to deliver the program quickly.

Testimony by a Canadian prime minister before a parliamentary committee is very unusual. It last happened in 2006 when then-Prime Minister Stephen Harper appeared at one to speak about Senate reform.

Trudeau's chief of staff, Katie Telford, will testify before the committee when the prime minister has finished.

Trudeau's testimony comes after he was put under investigation for possible conflict-of-interest violations. It is the third ethics probe he has faced in three years.

The prime minister has already apologized publicly for participating in the Cabinet decision to pick WE Charity to administer the grant program. The charity backed out shortly after the program was announced.

Canada's ethics commissioner launched the investigation after WE Charity disclosed that it had paid Trudeau's mother and brother for speaking appearances.

Both the prime minister and his wife, Sophie Gregoire Trudeau, have regularly participated in WE Charity events.

($1 = 1.3409 Canadian dollars)

(Additional reporting by Kelsey Johnson in Ottawa; Editing by Steve Orlofsky and Aurora Ellis)

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