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Canada's Corruption Scandal Breaks Wide Open
Captains Quarter ^ | 03/02/05 | Captains Quarters

Posted on 04/02/2005 4:57:54 PM PST by Pikamax

Canada's Corruption Scandal Breaks Wide Open

A political scandal involving the Public Works Ministry, a government effort called the Sponsorship Program, and allegations of corruption in the ruling Liberal Party has Canada abuzz with rumors of payoffs, Mob ties, and snap elections. For the last two years, Canadian politics has been gripped by the so-called “sponsorship scandal” – tens of millions of dollars in government contracts which were funneled into advertizing firms closely connected with the Liberal government for little or no work, but with shadowy rumours that much of the money found its way back into Liberal coffers. Prime Minister Paul Martin, himself a Liberal, appointed the Gomery Commission to investigate these charges and determine whether to bring charges against government officials for corruption and malfeasance. (See the blog Small Dead Animals for some excellent background on the case.)

Most of the testimony heard by the Commission has been public, but Judge Gomery has decided to create a publication ban on the testimony of three key witnesses: John Brault, president of the ad agency Groupaction, Charles Guité, an officer of the Public Works ministry who worked on the Sponsorship Program, and Paul Coffin, president of the ad agency Coffin Communications. The potential damage of their testimony has so unnerved the Liberal Party that they have reportedly started working towards a snap election so that they will not have to face the voters once the facts surface from the record.

And well they might, if Brault's testimony gives any indication of what they will face. Thanks to a friend of mine, CQ readers can get a taste of what Brault has already told the Gomery Commission. For obvious reasons, I cannot reveal this person's name or position, but this person is in a position to have the information. Bear in mind that this comes from a single source, so while I have confidence in the information, you should consider the sourcing carefully.

Payoffs And Kickbacks

On Thursday, Jean Brault began his testimony – subject to the publication ban – and revealed a massive pattern of corruption going to the highest levels of the Liberal party and government. Brault testified to hundreds of thousands of dollars of bogus transactions designed to benefit the Liberal Party of Canada over a period from 1994 to 2002.

Most of the illegal campaign contributions involved Brault either hiring “employees” -– who were in fact working full time on Liberal Party activities –- or paying invoices for Liberal Party campaign expenses (which were never declared as such) or making untraceable cash donations to Liberal officials. In exchange for helping the federal Liberals in Quebec, Brault received millions of dollars in federal advertising contracts.

Brault said he met with Jean Carle, a key aide to then Prime Minister Jean Chretien to propose a more direct way of ensuring that Groupaction got a large share of federal advertising dollars in Quebec. Carle referred Brault to federal bureaucrat Charles (“Chuck”) Guité and told him that “there was room for everybody.” Guité later put together the sponsorship program, in which five Liberal connected firms –- including Groupaction -– were guaranteed a monopoly on government “sponsorship” advertising (e.g. federal
advertising at sporting or cultural events) and related work. The sponsorship program eventually became a huge slush fund into which over $250 million was poured, over $100 million of which was paid in fees and commissions to these five advertising firms, with little or any evidence of work done or value for money.

In exchange for these large contracts for little or no work, Brault kicked back generously to the Liberal Party, putting Liberal organizers on his payroll while they continued to perform party work (including, at one point, Prime Minister Jean Chrétien’s brother, Gaby Chrétien), paying invoices to other companies for work actually done for the Liberal Party, and giving large donations -– in cash -– to the Liberal Party through Renaud or Liberal Party organizer (and close associate of Public Works Minister Alfonso Gagliano) Joe Morselli.

Protection Racket?

Towards the later part of the sponsorship program, the friends and associates of former Public Works ministry official and ambassador to Denmark Alfonso Gagliano, some of whom have been linked to organized crime, played a larger role in the schemes.

At one point, Gagliano associate Tony Mignacca told Brault that if he didn’t rehire Renaud (who had left Groupaction to start a new company), he would lose his newly acquired contract with Via Rail – Canada’s state-run passenger rail service. Brault broke down in tears after he recounted this testimony. At a meeting in 2001 with Joe Morselli, Brault said that he arranged to have the meeting in an overheated room in a restaurant – so that Brault could ask Morselli to take off his coat and ensure that he wasn’t carrying a body pack.

This is just the beginning of Brault's testimony. If the Gomery Commission can corroborate Brault, then the reek of corruption goes through all levels of the Liberal party and may explain their ability to out-campaign the Conservatives. After all, they've siphoned off hundreds of millions of government dollars to promote their own party and to guarantee their monopoly on power. They hijacked the Canadian tax base to fund their own campaigns and hide the financial trail.

More will be forthcoming, but it isn't difficult to understand why Liberal politicians have begun to panic already.

Posted by Captain Ed at April 2, 2005 05:30 PM


TOPICS: Canada; Foreign Affairs; News/Current Events
KEYWORDS: scandal
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1 posted on 04/02/2005 4:57:55 PM PST by Pikamax
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To: Pikamax

Hopefully this will open the eyes of the majority of Canadians,who consistently vote this scum in, time after time. God, I hope so.


2 posted on 04/02/2005 5:03:36 PM PST by LilyBean
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To: Pikamax

I guess the question to our Canadian readers is how to get this information widely disseminated in Canada.


3 posted on 04/02/2005 5:05:03 PM PST by Truth29
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To: LilyBean
>>>>>>>Hopefully this will open the eyes of the majority of Canadians,who consistently vote this scum in, time after time. God, I hope so.<<<<<<

Even if the majority of Canadians finally open their eyes, it will not change much.

What do you think, why Canada allows massive immigration but provides no skilled jobs for immigrants but settle them mostly in Toronto on social assistance?

Methinks it is creation of Liberal voting machine. The voting system by ridings will provide enough votes to re-elect this scum over and over again.

4 posted on 04/02/2005 5:09:41 PM PST by DTA
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To: Truth29

Post a link. It will be out in Canada now within 48 hours.


5 posted on 04/02/2005 5:10:38 PM PST by Former Proud Canadian (.)
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To: LilyBean
Nah No way! The Liberals have successfully painted the Conservatives as a bunch of bible thumping red neck George Doubya Bush wannabes hell bent on turning back the clock for women, minorities, gays and immigrants. They made themselves out to be the party that will protect your rights from the big bad american wannabes! And If I may say so (I can since I am Canadian) I believe that 60% of Canadians and 90% of Quebecers are bloody dillusional for buying into this bovine scatology!

the gigs up. These Liberals in name only (they are adherents of the socialist religion that is preached and practiced in Europe all in the belief that it will make them "less american")are very similar to the revoluntionary party in mexico that ran as a amjority gov't for 70 odd years. Well we have a bit of the same here._

6 posted on 04/02/2005 5:15:00 PM PST by bubman
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To: bubman

Canadians passively vote the same criminals back in every time. "What can you do?" they will say with a sigh. Just give them their lollipops or promise them that you'll take them away from the neighbours so nobody will have anything -- and bash the Americans -- and they're happy.

I've lived up here for 6 years and I can't believe how passive they are, but it's true.


7 posted on 04/02/2005 5:19:16 PM PST by KateatRFM
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To: Pikamax; MeekOneGOP; JudyinCanada
Bump To The TOP!!!!


8 posted on 04/02/2005 5:32:08 PM PST by fanfan (" The liberal party is not corrupt " Prime Minister Paul Martin)
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To: fanfan

Who is that DORK in the picture?


9 posted on 04/02/2005 5:33:43 PM PST by Stellar Dendrite (a PROUD member of the "Blame the MSM first" crowd!!!!!)
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To: Truth29

It is illegal to spread this info in Canada. The judge in charge of the inquiry has imposed a gag order. There is talk the BQ will raise the issue in the House of Commons which will for all intent and purposes break the gag.


10 posted on 04/02/2005 6:15:27 PM PST by Cdnexpat (Mr Bush, please don't speak to any member of a Liberal government on any topic.)
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To: Pikamax

Corruption? Liberals? No way!


11 posted on 04/02/2005 6:19:54 PM PST by Conservative Infidel
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To: KateatRFM
Absolutely, if you take as an example the Ballistic Missile Defence program that was conceived by Bill Clinton (who Canadians love!) and supported at the time by Paul Martin, it is incredulous that the same guy now (and some Canadians-the polls are all over the place on this one) will not support it for the simple fact I believe that there is an utter disdain for GWB among a large group of Canadians thus he does not want to be seen too associated with GWB!

Pathetic what passes for politicians in Canada!

12 posted on 04/02/2005 6:24:00 PM PST by bubman
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To: Cdnexpat
Well, nothing stops Canadians from reading Captain's Quarters or Instipundit. And if O'Reilly just happens to pick up the story on Monday, Fox News is now on in Canada.

This publication ban is idiotic. Why not just hold a closed session? Something just seems wrong about allowing the media to be somewhere but not allowing them to report. Rumors are often easier to spread than the truth (which might come back to bite the Liberals).
13 posted on 04/02/2005 6:25:57 PM PST by conservative in nyc
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To: KateatRFM

>>Canadians passively vote the same criminals back in every time. "What can you do?" they will say with a sigh.<<

Americans do exactly the same thing.


14 posted on 04/02/2005 6:40:28 PM PST by B4Ranch (The Minutemen will be doing a 30 day Neighborhood Watch Program in Arizona and New Mexico.)
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To: Cdnexpat

I have the incredible urge to spread it


15 posted on 04/02/2005 6:44:21 PM PST by Crazieman (Islam. Religion of peace, and they'll kill you to prove it.)
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To: conservative in nyc
The ban is in place because some of those who are testifying also face criminal charges related to their testimony. After the trials start the and the juries are sequestered then the info can be released.
16 posted on 04/02/2005 6:58:35 PM PST by Cdnexpat (Mr Bush, please don't speak to any member of a Liberal government on any topic.)
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To: Crazieman

If you are an American in America nothing is stopping you.


17 posted on 04/02/2005 6:59:57 PM PST by Cdnexpat (Mr Bush, please don't speak to any member of a Liberal government on any topic.)
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To: Cdnexpat
The ban is in place because some of those who are testifying also face criminal charges related to their testimony. After the trials start the and the juries are sequestered then the info can be released.

Then why hold a public inquiry including the testimony in the first place? Why not go to a closed session for the testimony? The publication ban is idiotic way of dealing with a potential poisoning of the jury because it will either lead to rumors or backdoor attempts to get the truth out. Rumors might hurt the Liberals and Jean Brault more than the truth, though.
18 posted on 04/02/2005 7:09:44 PM PST by conservative in nyc
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To: Pikamax
Prime Minister Paul Martin, himself a Liberal, appointed the Gomery Commission to investigate these charges...

"Well gawlly, we looked an' looked but we didn't find a dang thang.

"

19 posted on 04/02/2005 7:17:07 PM PST by infidel29 ("It is only the warlike power of a civilized people that can give peace to the world."- T. Roosevelt)
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To: Cdnexpat
The ban is in place because some of those who are testifying also face criminal charges related to their testimony. After the trials start the and the juries are sequestered then the info can be released.

In the U.S., this phase would be equivalent to a grand jury hearing -- which is a closed hearing and it is illegal to divulge the testimony.

The difference is that Canada is holding these hearings in public, but banning publication of their contents. The same effect, more awkwardly achieved.

20 posted on 04/02/2005 7:21:22 PM PST by okie01 (A slavering moron and proud member of the lynch mob, cleaning the Augean stables of MSM since 1998.)
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