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Adscam/ Gomery Inquiry/ et al

Why do we keep electing these people?

  • Stupidity

    Votes: 15 55.6%
  • No guts

    Votes: 12 44.4%

  • Total voters
    27

bossi

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Friday, July 5, 2002 (Toronto Sun)
Ad firm paid for bad logo
By Maria McClintock

OTTAWA -- A Montreal ad agency at the centre of the government sponsorship program controversy was paid nearly $25,000 to create a new logo for the defence department -- and its design was ultimately rejected.

Documents obtained by Canadian Alliance MP John Williams shows that in 2001 the defence department paid $66,000 to eight firms, including Groupaction Marketing, to develop a new logo.

Groupaction was paid the most at $24,836 -- $19,588 of which was paid out on the last day of the fiscal year in March 2001.

In the end, the final report submitted by the Montreal polling company Createc Plus said none of the five suggested new logos were acceptable.

"Changing to one of the new logo concepts was seen as a major shift for the (Canadian Forces), and ... this shift was perceived as too dramatic," its report said.

"It was just an excellent way to channel money right into Liberal donors," Williams charged.

Capt. Ian Grant, of the defence department, refused to comment.
 
http://www.thestar.ca/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1076411365455&call_pageid=968332188492&col=968793972154

Feb. 10, 2004. 08:41 PM

‘Shocking‘ misuse of public funds
Martin launches public inquiry

CANADIAN PRESS

OTTAWA (CP) - The quarter-billion-dollar federal sponsorship fiasco was so widespread that even Canada‘s fabled national police force was used to funnel cash to friends of the federal government, Auditor General Sheila Fraser said today.
Fraser delivered a brutally methodical account of how the Public Works Department used Crown corporations and the RCMP to systematically shovel funds from a national-unity program to a select group of businesses.

The ****ing indictment claimed its first casualty before it was even made public. Former public works minister Alfonso Gagliano was summarily fired from his job as ambassador to Denmark by Prime Minister Paul Martin.

Gagliano‘s department ran a now-infamous sponsorship and advertising program that saw organizers of Quebec public events paid huge sums to display Canadian flags or federal logos from 1997 to 2003.

But more than $100 million - or 40 per cent of the $250 million fund - ended up in the pockets of middlemen who sometimes did nothing more than just turn over cheques, Fraser charged.

The list of mysterious transactions, enigmatic banking and blatant fraud was detailed in detached but devastating prose in her report.

Crown corporations like VIA Rail, Canada Post, and the Port of Montreal were also fingered in a report that has potentially explosive consequences ahead of an expected spring election.

"This is just such a blatant misuse of public funds. It is shocking. . . . Words escape me," Fraser told a news conference.

"This wasn‘t just a matter of missing documentation or bending the rules. These methods were apparently designed to pay commissions to communications agencies while hiding the source of the funds."

Each glance at her own report stirred her to outrage, Fraser said. She called for an independent inquiry into the affair.

The government immediately agreed to hold an investigation.

Justice John Gomery of the Quebec Superior Court will lead the public inquiry. Another jurist, Andre Gauthier, was named special counsel for financial recovery. Gauthier‘s job will be to launch civil suits to recover some of the squandered money.

The government has had several months to prepare its response to what turns out to be a ticking political time bomb tossed into Martin‘s lap by his predecessor, Jean Chrétien.

Fraser‘s report was supposed to be made public last November, but Chrétien prorogued Parliament which delayed the auditor general‘s indictment until he was out of office.

But Martin‘s field generals and his entire cabinet have been seized by the need to dull the sting of a blow that could ground the prime minister‘s lofty public approval ratings.

Several senior members of the government were at a meeting at 8 a.m. today. Aides could be seen lugging bulky briefing material into the Langevin building housing the prime minister‘s office.

One senior government official promised to follow the investigation wherever it might lead - even if it hurts the Liberal party.

"We‘re not interested in a witch hunt and we‘re not interested in anything that could negatively affect the party brand," said the official.

"But at the end of the day the public interest demands that the answers to these questions be provided.

"We‘re the government. We‘re not just a political party."

Martin immediately called the report‘s findings "intolerable" and announcing several steps to contain the damage.

"Canadians deserve better and we will deal with the findings of the auditor general‘s report in all of its facets and we will do so immediately and we will do so thoroughly," Martin said.

He said the government will take four steps:


An independent public inquiry to probe the scandal.

An immediate review of the auditor‘s report by the House of Commons public accounts committee.

Appoint a special counsel to recover public funds which were inappropriately attained.

Introduce other measures to ensure the problems never occur again, including whistleblower protection and better management practices.
Opposition critics swiftly pounced at the scent of government blood. Their primary question: Why didn‘t Martin take action when he was finance minister in Chrétien‘s cabinet alongside Gagliano?

"Why did the prime minister stay silent when long ago he could have just said, `Stop it, this isn‘t right," Grant Hill, the interim Conservative leader, asked in the Commons.

"The prime minister knew about the scandal and yet he said nothing and he did nothing. Why did he choose to be silent instead of speaking up?"

Martin responded that he was unaware of any wrongdoing and approved funding for the sponsorship program on the assumption that rules were being followed.

But several opposition critics predicted that closer examination of the money trail will further embarrass the prime minister and damage the reputation of the governing party.

"This was not a government operation," NDP MP Bill Blaikie said of the sponsorship program. "This was a Liberal party operation."

When allegations of mismanagement first surfaced two years ago, the RCMP was called in to launch a criminal investigation that has since resulted in charges against Montreal businessman Paul Coffin.

Calling in the Mounties to investigate this time will be impossible, said Conservative MP John Williams.

"They (the RCMP) have to explain why they have become involved in a money-laundering scheme. This is our national police force," he said.

"This is a scandal of the greatest magnitude."

The RCMP‘s 125th anniversary in 1999 turned into an embarrassing waste of taxpayer dollars, Fraser said.

Public Works contributed $3 million to a trio of ad agencies - Lafleur, Media/I.D.A. Vision and Gosselin - who were responsible for transferring the money to the RCMP.

Those three agencies took a combined $1.3 million in fees and commissions and transferred $1.7 million to the RCMP for its anniversary celebration.

Fraser‘s audit concluded that the RCMP‘s Quebec division received its payments through a separate non-government bank account, which violates the federal Financial Administration Act.

The transactions were recorded manually rather than in the RCMP‘s standard accounting system, and some of the supporting documents were subsequently destroyed.

Fraser outlined similar practices in a stamp competition organized by Canada Post; in a Via Rail-sponsored television series on hockey legend Maurice Richard; and in a project to raise $1.5 million for a giant screen TV for the federally run Port of Montreal.

The auditor general expressed two major concerns with the practice.

First, there was obviously no need to go through private middlemen to transfer cheques from a government department to a government agency or crown corporation.

And it was useless to pay federal agencies like the RCMP to display the federal logo at their events. Treasury Board guidelines required them to do it, with or without the sponsorship program, Fraser noted.

The Chrétien government created the now-infamous program as a response to the near-catastrophe of the 1995 Quebec referendum.

Federal funds were used to fund sports and cultural events - almost always in Quebec - while event organizers plastered Canadian flags and federal posters for visitors to see.

But the government used the fund to confer lavish commissions on a small group of ad agencies that acted as middlemen.

Fraser had already denounced the practice in a narrower 2002 probe that focused on $1.6 million transferred to Groupaction Marketing Inc.

She concluded at the time that the federal government broke ``just about every rule in the book" in awarding contracts to the Montreal agency.

Groupaction said today it has voluntarily collaborated during each step of the audit.

But the Quebec company said it has been a victim of the situation, which caused the loss of about 100 jobs.

"It‘s important to underline that all of the work received by Groupaction were for contracts duly issued," the company said in a news release. "That said, the absence, not to mention the apparent disappearance, of government documents has caused and continues to cause irreparable harm to Groupaction."

Fraser‘s report released today also blasted the government in other areas. Fraser also concluded that:


The Chrétien government ignored federal contracting policies in rushing to spend $101 million on two Bombardier jets for the prime minister and other VIPs.

Indian and Northern Affairs has failed to track spending or resolve disputes linked to native land claims worth more than $1.2 billion.
Her probe into the sponsorship fiasco highlighted a number of other irregularities.

Among them was the story of a communications firm that received a $600 commission from a $5,600 grant to a Quebec college.

All the government received in return was the MP‘s name added to a mural at the college.

She also explained how the Montreal Impact soccer team received almost $150,000 in sponsorship funds during the 1998-99 indoor season.

A similar request by the Edmonton Drillers soccer team was rejected, with the government claiming no funds were available.
 
(whew ... thank goodness ... at least he was Air Force, not Army ..)

‘Mr. Government‘
Guite feds‘ ad czar
By LOUISE ELLIOTT AND JIM BRONSKIL, THE CANADIAN PRESS


OTTAWA -- As a loadmaster in the air force, Chuck Guite traversed the world supervising tricky operations -- like managing the drop of a bulldozer by parachute from a thousand metres in the air. Guite eventually parlayed the knack for overseeing tough assignments into a high-powered career as the federal government‘s advertising czar, a job that has landed him at the centre of the unfolding sponsorship controversy.

"He was never a simple soldier," one acquaintance says.

‘KNEW THE GAME‘

Joseph Charles Guite‘s mettle is again being tested as the sponsorship affair plays out in Ottawa amid rampant speculation about the part he may have played in the debacle.

Guite, who is vacationing in Arizona, declined through a friend to be interviewed.

A Commons committee has summoned Guite to answer to charges from Auditor General Sheila Fraser that $100 million in sponsorship money was misspent or could not be accounted for between 1997 and 2002.

"I think Mr. Guite knew the game he was playing. He was paid for that," multimedia executive Alain Richard says. "He knew he was in power. He knew he was Mr. Government."

Others, including Prime Minister Paul Martin, have contended that public works bureaucrats like Guite took orders from political masters.

While Guite‘s role may be unclear, the man himself is becoming less of a riddle.

A straight shooter and tough talker -- some say to the point of arrogance -- Guite, who turns 60 next month, revels in simple pleasures: Drinking beer, fishing, driving his truck.

Wearing a sturdy outback hat, he‘s as comfortable riding horseback at a dude ranch on his current holiday as he was sitting around a table with the bureaucratic elite.

Former public works minister Alfonso Gagliano says he met regularly with Guite to discuss certain sponsorship files, indicating an unusually direct relationship between a cabinet minister and a mid-level bureaucrat. The former public works minister has told MPs that Guite initiated the meetings.

The controversial sponsorship program bankrolled hundreds of events in the wake of the near-victory by Yes forces in the 1995 sovereignty referendum. The aim was to raise the sagging federal profile in Quebec.

Public works employee Allan Cutler has testified at committee that Guite pushed him out of a job after he blew the whistle on years of alleged rule-breaking.

Guite has admitted bending -- but not breaking -- the rules to stave off separatism.

‘WAS ABOUT RESPECT‘

The attitude perhaps befits a native Quebecer who rose from humble beginnings in the rural Gaspe hamlet of Dugal to an important post in the federal public service.

After retiring from his 34-year public service career in 1999, Guite worked as a lobbyist for ad firms through their trade associations.

The esteem of his superiors motivated Guite above all else, one former colleague said. "It wasn‘t about money, it was about respect."
 
Originally posted by Brad Sallows:
[qb] Is this a CF connection or a DND connection? [/qb]
Brad it appear‘s the Lado who was part of the DND computer scam was a fromer load master on Herc.‘s as I read it.
 
Yes, but my point is: did this happen because of things people in uniform did, or people in civilian clothes did?
 
Both.
The tenuous link is through a former CF member (i.e. somebody in civvie clothes who once wore an air force blue uniform).
 
Guite was employed as a loadmaster a long time ago. He has been out of uniform for a while.

He has been implicated in the "adscam" case, the 100 million paid to the GroupeAction public relations firm for which the auditor-general couldn‘t account.

The 160 million "removed" from DND is a separate loss.

What could you have done with 260 million in the training and maintenance budgets?

Kirkhill
 
:cdn:

Quebec's windfall

National Post

Wednesday, September 15, 2004

Adscam is still fresh in the minds of many Canadians: The judicial inquiry into the $100-million in dubious commissions funnelled to politically connected ad agencies in Quebec got underway just last week, and has continued to cast light on the largely pointless quarter-billion dollar "sponsorship program" under which those payments were made. Yet this week's revelations that 70% of federal funding for the 2004 Canada Day celebrations wound up in Quebec show that the federal government has still not reformed its favouritism toward la belle province. Given that Quebec has only 24% of the national population, the allotment of funds is manifestly unfair. Alberta, with more than 10% of the population, received less than 3.2% of the funds. Ontario suffered the biggest disparity -- 40% of all Canadians yet just 10% of total funding for the July 1 celebrations.

The Canadian Heritage department's explanation for the disparity -- that the feds have to give Quebec celebrations far more money because local governments and the province put up so little -- is wholly unsatisfactory: Why should celebrations in other provinces be robbed to fund Canada Day festivities in Quebec communities that show so little local interest or commitment? If anything, the federal government should be encouraged to ante up more in patriotic areas where local enthusiasm is made manifest with matching funds.

Unfortunately, such favouritism is the norm. In the late 1980s, when the Conservatives under Brian Mulroney were in power, the decision was made to ensure half of all military procurement occurred in Quebec. Manufacturers who wished to do business with the Canadian army, navy or air force were effectively told to set up shop in Quebec. The CF-18 maintenance contract was stripped from a Winnipeg firm and given to one in Montreal, and Ottawa chose Quebec as the site for Canada's emerging aerospace industry.

Under the Liberals in the 1990s, fully 71% of Canadian International Development Agency contracts went to Quebec companies, largely because CIDA rules permit the minister in charge to choose from one of five tenders pre-screened for "acceptability" by bureaucrats, ignoring the lowest bidder if he wishes. Under the infamous Transitions Job Fund, Quebec received nearly three times as much make-work money as the next highest province, and during one period it was discovered that the Quebec riding of then-prime minister Jean Chretien received more grants than Alberta and British Columbia combined.

Whether it is subsidies to upgrade home heating, or non-repayable "loans" to manufacturers, or federal university scholarships, other examples abound. There have even been complaints from Olympic athletes outside Quebec that the province receives more than its share of development funds. The sponsorship scandal, with its allegation that tens of millions of dollars were redirected for personal enrichment, is very much in a league of its own. However, the Quebec bias with respect to the disbursement of Canada Day monies is, regrettably, business as usual. It is high time this favouritism was ended.

 
They have to put money where they need to win votes, if they dont do that peoples from quebec will separate from canada. 
 
It's not that they will ever separate from Canada they know where there bread is buttered.  They just know that if they simply make some noise suggesting that they may do that, the  Federal governments gets its  undies in a bunch and the money flows in.  You can not tell me that Quebec is a have not Province.  They have been telling there citizens for decades that they have been treated badly by the feds and now they believe it.  All you have to remember even now they still get 2/3 of the money that is ear marked for Canada day and that is after the ad scam.

On the main topic the people get the government that they vote for simple said.  The liberal seems to have the golden touch when it comes to feeding  Bull carp to  the people and they want more.  They never seem to remember the past for very long. I hope and wish someday that they wake up from the nightmare that our country is turning into.
 
Isn't this more for the political thread in The Mess topic?

Acorn
 
SEB123 said:
They have to put money where they need to win votes, if they dont do that peoples from quebec will separate from canada. 

I fail to see the problem here...
Quebec hasn't expressed any legitimate interest in separating since the 60's or 70's. What they have done is suckered money from the rest of us by staging silly little BS referendums. They have no desire for national Independence, just handouts and preferential treatment, which is simply unacceptable.
 
nice to know. I do live in Ottawa which is in Ontario but very close to Quebec. If you are ever in the O.C. go across the river to Hull and check out the live entertainment ;D ;D ;D ;D ;D ;D ;D



For you people who's mind is in the gutter i really meant the casino.
cheers
 
canuck ,you are right, its a really nice casino, better than the one in montreal
 
Wow!  I gotta get me one of them ties that cost $121.50 each!!
I figure they either tie themselves, or are bulletproof ...
(which might come in awful handy for some people at the Adscam inquiry ...)

Ottawa paid thousands for ties, inquiry hears
Feb. 7, 2005. 08:01 PM

OTTAWA (CP) â ” The Liberal government paid nearly $60,000 for 480 neckties to be given to foreign dignitaries on Jean Chrétien's trips abroad, the federal sponsorship inquiry heard today.
The information came to light just as the former prime minister was getting ready to testify at the inquiry.

Chrétien is cheduled to begin his testimony tomorrow morning and continue for up to two full days.

The ties, which came in two styles and bore maple leaf logos, were ordered in 1998 after Jean Pelletier, who was Chrétien's chief of staff, complained about the poor quality of souvenir neckwear his boss had been handing out.

â Å“I thought Canada deserved a tie that held its own, that had some allure,â ? Pelletier told the inquiry headed by Justice John Gomery.

He said he asked Jean Carle, then Chrétien's director of operations, to come up with better products.

Details from there are hazy, but the job was eventually entrusted to the Montreal ad agency Lafleur Communication.

Pelletier said nobody told him the final price tag at the time. He only found that out last week, when he was shown the invoices in preparation for his testimony at the inquiry.

â Å“I was scandalized,â ? he said. â Å“All those costs made no sense, it wasn't what we wanted.

â Å“If I ask somebody to buy four tires for my car, it doesn't mean I'm giving him authority to pay four times the price.â ?

Documents provided by the Public Works Department show that Lafleur charged $88 apiece for 240 ties in one style, and $105 apiece for another 240 in the second style.

The two lots added up to $46,320 â ” but that wasn't the end of it.

Lafleur also billed Public Works for commissions of more than $8,000 for the agency's work on the project.

Another firm, Pluri Design, collected $4,500 as a subcontractor, billing for â Å“strategic researchâ ? as well as a range of other creative and production services.

Previous evidence has shown that Pluri Design was owned by Jacques Corriveau, a Montreal businessman who also did electoral campaign work for the Liberals.

A onetime vice-president of the federal party, Corriveau provided outdoor advertising signs for all Liberal candidates in Quebec in the 1993, 1997 and 2000 elections.

His name surfaced last week at the inquiry, in connection with other subcontracts he obtained through Groupe Polygone, a printing firm that did millions in sponsorship business with Ottawa.

Former public works minister Alfonso Gagliano has adamantly denied claims by opposition MPs that Corriveau was favoured for sponsorship deals because of his previous election work.

The fancy neckties weren't the only items that found their way to the Prime Minister's Office under the catch-all heading ``promotional itemsâ ? funded by the sponsorship program.

Chrétien was also furnished with dozens of golf balls embossed with his signature, in a deal that Gomery denigrated as â Å“small town cheapâ ? in a pre-Christmas media interview.

The judge held his tongue today and offered no personal view of the tie transaction.

Paul Martin, who was finance minister during the sponsorship years but killed the program when he took over the top job from Chrétien, is expected to testify Thursday and Friday.

Under Chrétien, starting in the mid-1990s, Ottawa spent some $250 million sponsoring sports and cultural events, films, TV series, books, magazines and a host of other projects.

The primary aim was to raise the federal profile in Quebec and fight separatism. But an estimated $100 million went to Liberal-friendly ad agencies and other middlemen who often failed to deliver quality work.

In his testimony, Pelletier readily acknowledged - as he has done before - that he offered personal advice on which projects should be funded.

But he insisted there was nothing wrong with that, given the program's overriding goal of promoting national unity.

"I have no apologies," he said. "I think I only did my duty. . . . I have a clear conscience about all of this."

Pelletier said it was natural that Chuck Guité, the Public Works bureaucrat in charge of sponsorship files, would want political guidance.

"So he would consult the Prime Minister's Office frequently to get our opinion. It was absolutely logical, in our view."

The opinions were offered in meetings where Pelletier, sometimes accompanied by Carle, would go over lists of proposed projects with Guité and discuss how much money each should get.

For some "major files" Guité may have referred to the need to hire a particular ad agency with sufficient resources to manage the project, said Pelletier.

"Perhaps he mentioned that, and perhaps I accepted it."

Pelletier maintained, however, that neither he nor anybody else at the PMO tried to impose their own views on which firms should handle specific events.

"We never chose any agencies at the Prime Minister's Office. We had nothing to do with that."

Pelletier conceded he had socialized with Jean Lafleur, the founder of Lafleur Communication, but said the two never discussed sponsorship business.

He also sought to play down the fact that Eric Lafleur - the son of Jean and a vice-president of the family ad firm - worked as a contract employee for the PMO on a 1998 trade mission by Chrétien to South America.

Eric's job was to look after relatively minor logistical matters like bus schedules and hotel accommodations, said Pelletier.

He was recommended for the work by Carle, who had also employed the younger Lafleur as a Liberal campaign volunteer during the 1997 federal election.
 
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