Updated: Tue May. 30 2006 11:32:48 PM

CTV.ca News

Liberal leadership hopeful Joe Volpe is rebuffing allegations that he deliberately circumvented a law banning corporate political donations.

"I assume that all of our contributors are in full compliance of the law as is our campaign," Volpe told CTV's Mike Duffy Live on Tuesday.

"I think this is an indication of people's confidence in Joe Volpe as a leadership candidate and they're doing everything they can to ensure that support comes from all quarters."

Volpe received $54,000 in separate donations from the top two executives at generic drug manufacturer, Apotex Inc., and their wives and six children.

In Volpe's statement of contributions to Elections Canada, Apotex CEO Barry Sherman, his wife and their four children all donated $5,400 each.

Apotex president Jack Kay, his wife and their two children also gave $5,400 each.

The revelation prompted NDP MP Pat Martin to file a complaint with commissioner Raymond Landry in which he doubted that the children, four of them teenagers, would "choose to donate their life savings" to Volpe's leadership campaign.

"This is a deliberate and well-orchestrated fraud on the Elections Act donations limit rules," Martin told reporters in Ottawa.

Under campaign law, a company cannot contribute to a leadership campaign but individuals, including company executives, employees and family members are permitted to give up to $5,400 each.

In the House of Commons Monday, Martin accused the Liberals of overlooking Volpe's "deliberate and premeditated fraud" when he accepted the donations.

Citing a lack of Liberal concern, Martin asked Landry to investigate all Liberal candidate donations made since the law came into affect in 2004.

While not commenting directly on the matter, Treasury Board President John Baird said the Conservatives new Federal Accountability Act is the best way to combat any circumvention of the law.

The act would ban corporate donations for election candidates and party leadership candidates. It would also reduce the amount of personal donations to $1,000.

Volpe is competing for the Liberal leadership alongside 10 other candidates. The new leader will be chosen Dec. 3 in Montreal.

With files from The Canadian Press