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.

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.

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.

Liberal Party of Canada:
Election Campaign was funded by B.C. Grow Ops
RCMP had raided BC Prov civil worker files with documents linking the Liberal Party to dope!
That was Sept 2003 and where are the files now?
Must have gone up in smoke just like the Air India files. The workers retired to luxury Turks & Caicos villas.

Pirate Minister Martin, captain of Canada Steam Lines, is full of bilge oil. Pollutes the Canadian east coast daily.
Ahoy Matey!... Welcome to Canadian waters, dump oil here ->
Fines are a joke!

Martin is 100% graft and former PM Chretien has markers on him! That's why old Jean was so smart at the Gomery hearing.

RE: Canada's Corruption Scandal Breaks Wide Open: I believe, over decades, Canadians have been quietly socialized to become, more complacent, more apathetic, government dependent, uninvolved, blind followers, towards a more leftist-leaning, socialist-style, government/society. In fact, I believe, Canadian "Progressive Conservatives" or "Conservatives" generally, are further to "the left" in Canada, than U.S. Democrats. There are consistently, publication bans on very significant social/political/legal matters, in Canada; under the guise of, protecting the "innocent until proven guilty" and/or not tainting potential evidence for pending, civil, criminal, or other trials. I believe, the Sponsorship Scandal "Adscam" is one scandal among many, which have been suppressed from public scrutiny....something many are trying to do in the U.S.
The occassional, motivated journalist, who does try to Access Information, is blacklisted and ostracized. Laymen and professionals, who fight for disclosure are similarly blacklisted, suppressed, ostracized and/or ruined. In addition, I believe most Canadians are placated and patronized/lulled into false-security, by politicians for specific self-serving gains. I believe Canadians think they are, so-called, more polite, courteous and possess higher, more positive morals or more considerate, passionate and caring values than most people, especially U.S. citizens. The point here is, CANADIANS do not get involved because they are kept in the dark, they have been conditioned to react passively and are afraid or punished, when they do express dissenting opinions...thus, secrecy and corruption prevails. Leading news media stations/programs, are more interested in surviving and in many cases, are in part or in whole funded directly or indirectly, by Government funding. Journalists and money are limited; nepotism, favouritism and protectionism, is rampant in the news media business, government offices and especially in the public sector business; without scrutiny, let alone inquiry. The aforementioned, follow the "interpreted" rule-of-the-day, without question. BUT NOW, BLOGGERS have ruined the day...the truth is seeping to the surface....and...of course, disclosure has been initiated, via a vehicle located in the U.S. Canadians began to ask questions about issues and the pear-heads in Canada, again, gagged disclosure. My opinion is, if you are guilty, you are guilty; the Canadian government is not interested in protecting the rule of law or civil/criminal procedure, as they represent to be doing; they are really interested in hiding the truth and hiding the process in which they have and will continue to corrupt the law, the process and misrepresent the facts. Thank God for the BLOGGERS and the courage they instill in others!! However, believe me, related politician's, public servants and their cronies, will desperately try to shut the bloggers down, BY ANY MEANS AVAILABLE!!! In fact, recent reports disclose this posting by me, could get me charged. GO FIGURE!!!

I would like to give you an accurate analysis on what's going on in Canada politically from a conservative perspective.

Let's clear the air about Conservatives. There is a new Conservative Party of Canada, just over one year old, which is a merger of Canada's two right-wing parties, stopping the vote split on the right. I am very active in Conservative Party of Canada, a true right-wing conservative party founded on principles of individual rights and responsibilities, smaller government, economic strength, etc, all conservative principles. For your information, we are NOT left of the Democrats. When I listened to Arnold's speech at the GOP convention, you could have replaced the phrases "I am a Republican" with "I am a Conservative" and it would have rallied Canadian Conservatives just as much.

In Canada we are in a situation where successive Liberal governments have continually entrenched soviet-style management in the executive branch. We have media censorship (very literally, like in third-world dictatorships), appointed partisan judges that have been given legislative tasks by the Liberal government, government departments that create financial safe-havens where the Auditor General cannot audit the government books adequately, Liberal patronage across the board, appointed partisan senators wielding large Liberal rubber stamps, expensive leftist policies that don't even accomplish the stated goals (like most leftist implementations), a newly proposed government daycare program to compliment the state-run public schools and universities so that everyone born in Canada will be fully indoctrinated Liberal from birth to age 25, no national defense, no economic incentives, no accountability, thanks Liberal Party of Canada.

Conservatives in Canada are fighting harder than ever to end the tyranny of our elected dictatorship. Unfortunately, the Canadian public seems to be apathetic to all of this, no doubt a product of two generations of state-run propaganda in broadcasting and ever-empowered partisan socialist union-pulling school teachers. It is an up-hill battle for Conservatives but we are charging forwards and making serious headway.

Since the merger of Canada's right-wing parties, we are now under one Conservative banner and have ended the vote splitting on the right. We recently had a national convention and even the typically leftist media were giving us rave reviews. The Liberals had better watch out because there is a tory train steaming ahead right to the Prime Minister's Office. Conservatives are growing in strength, numbers, passion for change in Canada, and good old conservative principles.

Sorry...In reply to your posting, I will also play the game we in Canada like to do and as you have done,
i.e.) who we know, our importance/associations and our purported access to priviledged information; this is suppose to tame me, shut me up, assume I am wrong...this is what Canada, from the top down, attempts and so often succeeds in, so effectively. I will also validate my "posting" by stating; based on MY extensive years living and working as a Canadian Citizen in Canada and many years living and working legally in the U.S., combined with my various private and public sector employment tenure's, in both countries, in reply to your comment on my "Left of U.S. Democrats" comment, it is my opinion and belief, the NEW Canadian Conservative Party is a joke and definitely "far left" of the U.S. Democrat Party ideologies and method's of operation. WAKE UP CANADA!! signed: An Informed Canadian

There hasn't been a government in Canada or the United States that hasn't had some kind of scandal. It is the nature of of politics to attract self-interested and corrupt people. It is almost impossible for an honest person to get elected to any position of power, in either country. This is not a defense of the Liberal party or their activities. As a life-long Liberal, I want more than a political scandal, I want people to go to jail... the really bad jails where they'll be someone's bitch.
But to all those Conservative Canadians who are congratulating themselves right now, keep this in mind. You lost power in the early 90's because of a perceived abuse of power by the Conservatives in the 80's. You continue to lose because you are perceived as either stupid hillbilies, or angry bible-thumping racists. The PC's used to be respectable when they were the party of business, of the entrepreneur, of fiscal responsibility. The PCs racked up more debt in the 80's than all other governments combined before them. So much for fiscal conservativism, and so much for credibility.
The Liberals aren't in power because a majority of Canadians voted for them (or even all the immigrants). They are in power because the traditional conservative power-base in central Canada has no party representing their views, and so they don't vote. If the PCs are ever going to regain any credibility and ever get in to power again, they need to put away the bibles, stop yelling racist comments, take a big breath so their faces stop turning red, learn to speak French, and try to act like nice intelligent people. No one wants to be lead by an angry person, except maybe a fascist. That isn't a political statement, so much as it is a statement about public relations. It does matter how you look on TV, and that isn't a function of liberal bias. Look in the mirror.
Having said that, as a Liberal, I would like to see a stronger Conservative party. Without credible opposition, any party will fall in to corruption. Please, Conservatives, get your act together. The country needs you strong.

You know I cannot understand why Canadians are so blind.We are severly overtaxed.We have people in the government who laugh at the poor belittle the middle income payers and shake hands with the rich.When are the people of this country going to wake up and smell the coffee.Every politician should be held accountable for wrongdoings.When is this taxation going to stop,there is no need for this.There is enough money in this world right now to feed and clothe each and every one of us.There is no need for poverty,and the people who are holding all the cards know this.Now is time for change,and the people have to change it.

Most elections in Canada are pre-planned by the ruling Party to be on a date when the vaste majority of college and university students are either in transit between semesters or writing exams, making it difficult for them vote. You have to caste your ballot in the riding were you reside. Thousands of voters will be away from their riding on election day. I wouldn't be surprized if they consult the farmer alminac as well. I don't remember an election day that wasn't storming, making it difficult for many elderly and less able bodied voters to caste their ballots. We have never had a true democracy in Canada because the majority of the electorate have never turned out to caste their ballots.
Canadians that do vote up here in Canada are either what is known as "the party faithful", or individuals who have an issue with the representative in their own constistuancy. As you can gather from this adscandle, votes are "bought".

A snap election is a term coined by the media to define an election that is called in the middle of a four year term of office by the Prime Minister. I doubt if Paul Martin will do this, as the scandal happened under his predecessor, Jean Cretien's watch, and Mr. Martin and his liberal team in essance mutineered the leadership and as far as we know to this day, April 4th, were not involved and knew only that the other camp of Cretien liberals were corrupt.

Looks like lugger11 has all the answers that Canadian Conservatives need! (post #59)

LOL, I always enjoy it when a lefty tells Conservatives why they lost, what they must do to win, yada, yada, yada.

One of my favorite lefty postures is when lefties strip the military, then when the Conservatives have to spend the $$ to reconstruct it, they start calling out, like little children: "See, you're not really fiscally conservative like you said you were. We lefties didn't spend that much money when we were in power. naner, naner, naner."

Keep the faith (literally and figuratively) and keep on sloughing forward. It won't be easy, or necessarily quick, but i believe you will prevail.

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