OTTAWA – The opposition used what the Tories called a “false” news report Friday to accuse the Prime Minister’s Office of controlling a $1-million secret party slush fund and using it to pay off Sen. Mike Duffy’s ill-gotten housing expenses.

The Conservative Party, Tory MPs and the PMO categorically denied the existence of the stash the state-owned broadcaster said was administered by Prime Minister Stephen Harper’s former chief of staff, Nigel Wright.

“This is false. They (CBC) should retract this piece of shoddy journalism,” party spokesman Fred DeLorey said in a statement.

“All Conservative Party expenses are paid by one account, controlled by the Conservative Party. All funds are properly reported to Elections Canada and audited annually,” he said.

“The Conservative Party ensures that non-government activities undertaken by the prime minister are never billed to taxpayers.”

The NDP and the Liberals – like the Tories – routinely use party funds to pay for expenses unrelated to parliamentary duties incurred by their leaders.

“The CBC is being selective, failing to mention this is a standard practice for all political parties,” DeLorey said about the news report.

Wright resigned from the PMO last month after confessing he wrote a personal cheque for $90,000 to Duffy, who was caught cheating on expense claims and is now the target of an RCMP review that could lead to criminal charges.

The PMO has refused requests to produce the cheque to dampen weeks of opposition attacks and allegations of a cover-up, a doctored Senate report and PMO meddling in Senate affairs.

“No Conservative Party funds were used to repay Mike Duffy’s inappropriate expenses,” DeLorey said. “No taxpayer funds were used. Nigel Wright was not reimbursed by anyone. We cannot be clearer on this point.”

The NDP said it wanted evidence.

“I am still proceeding on the premise that the government is not believable until it produces proof,” NDP MP Craig Scott said.

Harper was absent from the Commons on Friday, and MPs are set to recess for the summer in two weeks, so he is unlikely to face direct opposition attacks there over the Senate scandal until September. But the controversy will follow him on his trip to Europe next week.

The CBC said it won’t retract its report.

“We stand behind the story,” spokesman Chris Ball said.

DeLorey did not return an e-mail that asked whether the party is considering a lawsuit.

Mark.Dunn@sunmedia.ca

Twitter: @MarkDunnSun