Sponsorship scandal
Encyclopedia
The sponsorship scandal, "AdScam", "Sponsorship" or Sponsorgate, is a scandal
Scandal
A scandal is a widely publicized allegation or set of allegations that damages the reputation of an institution, individual or creed...

 that came as a result of a Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 federal government
Politics of Canada
The politics of Canada function within a framework of parliamentary democracy and a federal system of parliamentary government with strong democratic traditions. Canada is a constitutional monarchy, in which the Monarch is head of state...

 "sponsorship program" in the province of Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

 and involving the Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

, which was in power from 1993 to 2006. The program was originally established as an effort to raise awareness of the Government of Canada
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...

's contributions to Quebec industries and other activities in order to counter the actions of the Parti Québécois
Parti Québécois
The Parti Québécois is a centre-left political party that advocates national sovereignty for the province of Quebec and secession from Canada. The Party traditionally has support from the labour movement. Unlike many other social-democratic parties, its ties with the labour movement are informal...

 government of the province that worked to promote Quebec independence
Quebec sovereignty movement
The Quebec sovereignty movement refers to both the political movement and the ideology of values, concepts and ideas that promote the secession of the province of Quebec from the rest of Canada...

.

The program ran from 1996 until 2004, when broad corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

 was discovered in its operations and the program was discontinued. Illicit and even illegal activities within the administration of the program were revealed, involving misuse and misdirection of public funds intended for government advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

 in Quebec. Such misdirections included sponsorship money awarded to ad firms in return for little or no work, which firms maintained Liberal organizers or fundraisers on their payrolls or donated back part of the money to the Liberal Party. The resulting investigations and scandal affected the Liberal Party of Canada and the then-government of Prime Minister
Prime Minister of Canada
The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...

 Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

. It was an ongoing affair for years, but rose to national prominence in early 2004 after the program was examined by Sheila Fraser
Sheila Fraser
Sheila Fraser served as Auditor General of Canada from 2001 to 2011.Ms. Fraser was born in Dundee, Quebec, Canada. She earned a Bachelor of Commerce degree from McGill University in 1972. She then became a chartered accountant in 1974 and FCA in 1994...

, the federal auditor general
Auditor General of Canada
The role of the Auditor General of Canada is to aid accountability by conducting independent audits of federal government operations. The Auditor General reports to the House of Commons, not to the government...

. Her revelations led to the government establishing the Gomery Commission
Gomery Commission
The Gomery Commission, formally the Commission of Inquiry into the Sponsorship Program and Advertising Activities, was a federal Canadian Royal Commission headed by the retired Justice John Gomery for the purpose of investigating the sponsorship scandal, which involved allegations of corruption...

 to conduct a public inquiry
Public inquiry
A Tribunal of Inquiry is an official review of events or actions ordered by a government body in Common Law countries such as the United Kingdom, Ireland or Canada. Such a public inquiry differs from a Royal Commission in that a public inquiry accepts evidence and conducts its hearings in a more...

 and file a report on the matter. The official title of this inquiry was the Commission of Inquiry into the Sponsorship Program and Advertising Activities. In the end the Commission concluded that $2 million was awarded in contracts without a proper bidding process, $250,000 was added to one contract price for no additional work, and $1.5 million was awarded for work that was never done, of which $1 million had to be repaid. The total cost of the Commission was $14 million.

In the national spotlight, the scandal became a significant factor in the lead-up to the 2006 federal election
Canadian federal election, 2006
The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...

 where after more than twelve years in power the Liberals
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

 were defeated by the Conservatives
Conservative Party of Canada
The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum...

, who formed a minority government that was sworn in February 2006.

Involved parties

  • Jean Chrétien
    Jean Chrétien
    Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....

     — Prime Minister of Canada at the time the Sponsorship Program was established and operated. The Gomery Commission, First Phase Report
    Gomery Commission
    The Gomery Commission, formally the Commission of Inquiry into the Sponsorship Program and Advertising Activities, was a federal Canadian Royal Commission headed by the retired Justice John Gomery for the purpose of investigating the sponsorship scandal, which involved allegations of corruption...

     which assigned blame for the Sponsorship scandal cast most of the indemnity for misspent public funds, fraud on Chrétien and his Prime Minister's Office
    Prime Minister's Office
    The Prime Minister's Office is a small department which provides advice to a Prime Minister in some countries:* Office of the Prime Minister * Office of the Prime Minister * British Prime Minister's Office...

     staff, though it cleared Chrétien himself of direct wrongdoing.
  • Jean Pelletier
    Jean Pelletier
    Jean Pelletier, was a Canadian politician, who served as the 37th mayor of Quebec City, Chief of Staff in the Prime Minister's Office, and chairman of Via Rail...

     — Prime Minister's chief of staff and later chairman of Via Rail
    VIA Rail
    Via Rail Canada is an independent crown corporation offering intercity passenger rail services in Canada. It is headquartered near Montreal Central Station at 3 Place Ville-Marie in Montreal, Quebec....

    . Via Rail was accused of mishandling sponsorship deals, though mostly not under Pelletier's tenure.
  • Alfonso Gagliano
    Alfonso Gagliano
    Alfonso Gagliano, PC, FCGA is a Canadian accountant and a former Liberal Party politician.Born in Siculiana, Italy, his political career began in 1977 when he ran for a seat on the Montreal school board. In the 1984 federal election, he ran for Parliament for Saint-Léonard—Anjou narrowly...

     — Minister of Public Works, and thus in charge of the program. Also the political minister for Quebec.
  • André Ouellet
    André Ouellet
    André Ouellet, P.C., Q.C. is a former Chairman of Canada Post, and a long time Liberal politician in Canada.First elected to the Canadian House of Commons in a 1967 by-election, Ouellet served in a number of different positions in the cabinets of Prime Ministers Pierre Trudeau and Jean Chrétien...

     — member of Prime Minister Chrétien's Cabinet, longtime Liberal politician and later head of Canada Post
    Canada Post
    Canada Post Corporation, known more simply as Canada Post , is the Canadian crown corporation which functions as the country's primary postal operator...

    , who was also accused of violating sponsorship rules.
  • Chuck Guité — bureaucrat in charge of the sponsorship program. Arrested for fraud by the Royal Canadian Mounted Police
    Royal Canadian Mounted Police
    The Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...

     (RCMP) - convicted on five counts on June 6, 2006.
  • Jean Brault — head of Groupaction Marketing, one of the companies to which deals were directed. Arrested for fraud by the RCMP, he pleaded guilty to five counts of fraud and on May 5, 2006, was sentenced to 30 months in prison.
  • Jacques Corriveau
    Jacques Corriveau
    Jacques Corriveau is a Quebec businessperson and owner of the graphic design firm Pluri Design Canada Inc. His close ties to the Liberal Party of Canada and his firm's involvement with the Sponsorship Program has put him and his firm at the center of the Sponsorship Scandal.Corriveau is known for...

     — Liberal organizer and head of Pluridesign to which millions in sponsorship dollars were directed.
  • Paul Martin
    Paul Martin
    Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

     — former Prime Minister of Canada. He was Minister of Finance, and Senior Minister from Quebec during most of the years the program occurred. When he became Prime Minister in December 2003, he claimed that he put a halt to it. He also set up the Gomery Commission which later cleared him of formal responsibility by Justice Gomery in his November 2005 'First Phase Report' of the Gomery Commission
    Gomery Commission
    The Gomery Commission, formally the Commission of Inquiry into the Sponsorship Program and Advertising Activities, was a federal Canadian Royal Commission headed by the retired Justice John Gomery for the purpose of investigating the sponsorship scandal, which involved allegations of corruption...

    . The Gomery findings claimed that Martin, as finance minister, established a 'fiscal framework' but he did not have oversight as to the dispersal of the funds once they were apportioned to Chrétien's Prime Minister's Office
    Office of the Prime Minister (Canada)
    In Canada, the Office of the Prime Minister , located in the Langevin Block, on Parliament Hill, in Ottawa, is one of the most powerful parts of the government. It is made up of the prime minister and his or her top political staff, who are charged with advising the prime minister on decisions,...

    . A report on the issue by the Auditor General's Office
    Auditor General of Canada
    The role of the Auditor General of Canada is to aid accountability by conducting independent audits of federal government operations. The Auditor General reports to the House of Commons, not to the government...

     of Sheila Fraser
    Sheila Fraser
    Sheila Fraser served as Auditor General of Canada from 2001 to 2011.Ms. Fraser was born in Dundee, Quebec, Canada. She earned a Bachelor of Commerce degree from McGill University in 1972. She then became a chartered accountant in 1974 and FCA in 1994...

     came to the same conclusion. Nonetheless, Martin was frequently accused of tying Gomery's hands and using the sponsorship scandal as an excuse to purge the Liberals of members who supported Chrétien. The scandal played a factor in the federal election of 2006 and the fall of the Liberal Government. Shortly thereafter, Martin resigned from the liberal party leadership.
  • Joe Morselli
    Joe Morselli
    Giuseppe Morselli was a Quebec businessman who owned a successful cafeteria enterprise and was a major fundraiser for the Liberal Party of Canada in Quebec. He was implicated as being one of the key players in the sponsorship scandal...

     — Liberal Party fundraiser. Jean Brault testified that the money exchanges were with Morselli.
  • Jean Lafleur
    Jean Lafleur
    Jean Lafleur is a Canadian businessman famous for his role in the Liberal Party of Canada Sponsorship scandal.-Role in Sponsorship scandal:On April 27, 2007, Lafleur returned to Canada from a two-year stay in Belize, where he was reported to have lived in an exclusive villa and enjoyed fine wines....

     — former CEO of Lafleur Communication Marketing Inc. One of the advertising executives that accepted money from the federal government. Pleaded guilty to 28 counts of fraud.
  • Allan Cutler
    Allan Cutler
    Allan S. Cutler is a former Canadian public servant notable for his role as the whistleblower who reported anomalies in a Canadian sponsorship program designed to raise awareness in Quebec of the Government of Canada's contributions to Quebec industries and culture. This program was undertaken to...

     — former civil servant and whistleblower
    Whistleblower
    A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...

     who reported anomalies in a Canadian sponsorship program, triggering the Scandal.

1995

  • Allan Cutler first attempts to raise concerns about bid-rigging and political interference to the attention of senior management at the Department of Public Works and Government Services Canada
    Public Works and Government Services Canada
    Public Works and Government Services Canada is the department of the government of Canada with responsibility for the government's internal servicing and administration....

    .

1996

  • Ernst & Young
    Ernst & Young
    Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....

     conducts an audit of contracting and tendering practices. The initial draft, which identified recurring problems and the risk of legal action, was altered in the final report. Ernst & Young representative Deanne Monaghan later indicated that she did not recall why the report had been changed to remove those references.

2000

  • February — An internal audit reveals that none of the recommendations of the 1996 Ernst & Young audit have been implemented.
  • September — Minister Alfonso Gagliano receives the 2000 audit and suspends the Sponsorship Program. Later that year, the Office of the Auditor General of Canada
    Auditor General of Canada
    The role of the Auditor General of Canada is to aid accountability by conducting independent audits of federal government operations. The Auditor General reports to the House of Commons, not to the government...

     begins investigating the program.

2004

  • February 10 — Auditor General Sheila Fraser
    Sheila Fraser
    Sheila Fraser served as Auditor General of Canada from 2001 to 2011.Ms. Fraser was born in Dundee, Quebec, Canada. She earned a Bachelor of Commerce degree from McGill University in 1972. She then became a chartered accountant in 1974 and FCA in 1994...

    's report reveals up to $100 million of the $250 million sponsorship program was awarded to Liberal
    Liberal Party of Canada
    The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

    -friendly advertising firms and Crown corporations for little or no work.
  • February 11 — Prime Minister
    Prime Minister of Canada
    The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...

     Paul Martin
    Paul Martin
    Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

     orders a Commission of Inquiry into the Sponsorship Program and Advertising Activities. The Commission of Inquiry will be headed by Justice John H. Gomery
    John Gomery
    John H. Gomery, BCL, BA, QC is a retired Canadian jurist. He was born in Montreal, Quebec, Canada.-Personal life:Gomery has a daughter, Cym Gomery, who is a partisan and candidate of municipal party Projet Montreal. Gomery is fluently bilingual, as is his daughter...

    . Martin fires Alfonso Gagliano
    Alfonso Gagliano
    Alfonso Gagliano, PC, FCGA is a Canadian accountant and a former Liberal Party politician.Born in Siculiana, Italy, his political career began in 1977 when he ran for a seat on the Montreal school board. In the 1984 federal election, he ran for Parliament for Saint-Léonard—Anjou narrowly...

     from his post in Denmark
    Denmark
    Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

    . Martin asserts that he had no knowledge of the scandal prior to the Auditor General's report.
  • February 13 — The National Post
    National Post
    The National Post is a Canadian English-language national newspaper based in Don Mills, a district of Toronto. The paper is owned by Postmedia Network Inc. and is published Mondays through Saturdays...

     newspaper publishes a 2002 letter leaked to it by an unidentified third party, between the Liberal Party's then National Policy Chairman and Paul Martin, urging Martin to stop partisan financial abuses in the Sponsorship Program, thereby casting doubt on Martin's defence of personal ignorance.
  • February 24 — Martin suspends Business Development Bank of Canada
    Business Development Bank of Canada
    The Business Development Bank of Canada is a crown corporation financial institution wholly owned by the Government of Canada. BDC plays a leadership role in delivering financial and consulting services to Canadian small business, with a particular focus on technology and exporting.BDC's debt...

     president Michel Vennat
    Michel Vennat
    Michel Vennat, OC, QC is a Canadian civil servant, lawyer, businessman, and former President of the Business Development Bank of Canada. He was fired due to the investigation of the 2004 Canadian sponsorship scandal...

    , Via Rail president Marc LeFrançois
    Marc LeFrançois
    Marc LeFrançois is a Canadian business executive. He was the president of Via Rail until March 5, 2004, when he was fired in connection with the sponsorship scandal. He was a board member from 1997 to 2002, and replaced Rod Morrison as CEO of Via Rail in November 2000.-References:...

     and Canada Post
    Canada Post
    Canada Post Corporation, known more simply as Canada Post , is the Canadian crown corporation which functions as the country's primary postal operator...

     president André Ouellet
    André Ouellet
    André Ouellet, P.C., Q.C. is a former Chairman of Canada Post, and a long time Liberal politician in Canada.First elected to the Canadian House of Commons in a 1967 by-election, Ouellet served in a number of different positions in the cabinets of Prime Ministers Pierre Trudeau and Jean Chrétien...

     giving each an ultimatum to defend themselves or face further disciplinary action.
  • February 27 — Past Olympic
    Olympic Games
    The Olympic Games is a major international event featuring summer and winter sports, in which thousands of athletes participate in a variety of competitions. The Olympic Games have come to be regarded as the world’s foremost sports competition where more than 200 nations participate...

     gold medallist Myriam Bédard
    Myriam Bédard
    Myriam Bédard, MSC is a Canadian biathlete , winner of two Olympic gold medals.-Olympic career:Born in Neufchâtel, Quebec, Bédard learned marksmanship as a member of the Royal Canadian Army Cadets' 2772 cadet corps, which she joined at the age of 15, and participated in her first biathlon event at...

     reveals she was pushed from her job at Via Rail for questioning billing practices. Via Rail chairman Jean Pelletier
    Jean Pelletier
    Jean Pelletier, was a Canadian politician, who served as the 37th mayor of Quebec City, Chief of Staff in the Prime Minister's Office, and chairman of Via Rail...

     publicly belittles Bédard and calls her pitiful.
  • March 1 — Pelletier is fired.
  • March 3 — Jean Carle, a close confidant of Chrétien and his former director of operations, surfaces in close connection to the sponsorship initiative.
  • March 5 — LeFrançois is fired.
  • March 11 — Allan Cutler, former public works accountant, testifies before the Commission of Inquiry. He places responsibility for the program and its irregularities with Chuck Guité.
  • March 12 — Vennat is fired.
  • March 13 — An unidentified whistle-blower reveals that high-ranking government officials, including Jean Pelletier, Alfonso Gagliano, Don Boudria, Denis Coderre, and Marc LeFrançois, had frequent confidential conversations with Pierre Tremblay, head of the Communications Coordination Services Branch of Public Works from 1999 until 2001. The claim is the first direct link between the scandal and the Prime Minister's Office. Coderre and LeFrançois denied the allegation.
  • March 18 — Gagliano testifies in front of the Public Accounts Committee, a committee of the House of Commons chaired by a member from the Official Opposition. Gagliano denies any involvement by himself or any other politician; he points blame at bureaucrat Chuck Guité.
  • March 24 — Myriam Bédard
    Myriam Bédard
    Myriam Bédard, MSC is a Canadian biathlete , winner of two Olympic gold medals.-Olympic career:Born in Neufchâtel, Quebec, Bédard learned marksmanship as a member of the Royal Canadian Army Cadets' 2772 cadet corps, which she joined at the age of 15, and participated in her first biathlon event at...

     testifies at the Public Accounts Committee. In addition to repeating her earlier assertions, she also claims that Formula One
    Formula One
    Formula One, also known as Formula 1 or F1 and referred to officially as the FIA Formula One World Championship, is the highest class of single seater auto racing sanctioned by the Fédération Internationale de l'Automobile . The "formula" designation in the name refers to a set of rules with which...

     driver Jacques Villeneuve
    Jacques Villeneuve
    Jacques Joseph Charles Villeneuve, , is a Canadian musician and automobile racing driver. He is the son of the late Formula One driver Gilles Villeneuve, and is the namesake of his uncle...

     was given a secret $12 million payoff to wear a Canadian flag logo on his racing suit (however, Villeneuve sharply denies this allegation, calling it "ludicrous"). Bédard also testifies that she once heard that Groupaction
    Groupaction
    Groupaction Inc. is a Canadian advertising agency at the centre of the 2004 Canadian sponsorship scandal. It was incorporated in 1983 as Groupaction Marketing Inc. and received its first federal advertising contract in 1994 with the Canadian Radio-television and Telecommunications Commission ....

     was involved in drug trafficking.
  • April 2 — Previously confidential testimony from a 2002 inquiry into suspicious Groupaction contracts is made public. In it, Guité admits to having bent the rules in his handling of the advertising contracts but defends his actions as excusable given the circumstances, saying, "We were basically at war trying to save the country... When you're at war, you drop the book and the rules and you don't give your plan to the opposition."
  • April 22 — Guité testifies. He claims Auditor-General Fraser is misguided in delivering the report, as it distorts what actually went on; he claims the office of then-Finance Minister Paul Martin lobbied for input in the choice of firms given contracts; and he denies that any political interference occurred, because his bureaucratic office made all final decisions. Opposition MPs decry his comments as "nonsense" and claim he is covering up for the government. The French language press gives a very different account of Guité's testimony; a La Presse headline states that Guité is involving the Cabinet office of Paul Martin.
  • May 6 — An official announces the inquiry deadline is set for December 2005.
  • May 10 — Jean Brault, president of Groupaction, and Charles Guité
    Charles Guité
    J. Charles Guité , raised in Campbellton, New Brunswick, is a former Canadian civil servant who was in charge of the federal sponsorship program from 1996 to 1999....

     arrested by the Royal Canadian Mounted Police
    Royal Canadian Mounted Police
    The Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...

     for fraud in connection with the sponsorship scandal.
  • May 23 — Paul Martin requests that the Governor General dissolve Parliament and call a federal election
    Canadian federal election, 2004
    The Canadian federal election, 2004 , was held on June 28, 2004 to elect members of the Canadian House of Commons of the 38th Parliament of Canada. The Liberal government of Prime Minister Paul Martin lost its majority, but was able to form a minority government after the elections...

    .
  • May 28 — Alfonso Gagliano launches a lawsuit for $4.5 million against Prime Minister Paul Martin and the federal government for defamation and wrongful dismissal claiming that he has been unfairly made to pay for the sponsorship scandal.
  • June 28 — The Liberals win 135 of 308 seats in the 2004 election
    Canadian federal election, 2004
    The Canadian federal election, 2004 , was held on June 28, 2004 to elect members of the Canadian House of Commons of the 38th Parliament of Canada. The Liberal government of Prime Minister Paul Martin lost its majority, but was able to form a minority government after the elections...

    , forming the first minority government
    Minority government
    A minority government or a minority cabinet is a cabinet of a parliamentary system formed when a political party or coalition of parties does not have a majority of overall seats in the parliament but is sworn into government to break a Hung Parliament election result. It is also known as a...

     in almost 25 years.
  • September — First public hearing
    Hearing (law)
    In law, a hearing is a proceeding before a court or other decision-making body or officer, such as a government agency.A hearing is generally distinguished from a trial in that it is usually shorter and often less formal...

    s of the Commission of Inquiry into the Sponsorship Program and Advertising Activities begin in Ottawa. They will move to Montreal
    Montreal
    Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

     in February 2005 and conclude in the Spring.
  • December — In a year-end media interview, Justice John Gomery refers to Chrétien's distribution of autographed golf balls as "small-town cheap", which later prompts an indignant response from the former prime minister.

2005

  • March 29 — A publication ban
    Publication ban
    A publication ban is a court order which prohibits the public or media from disseminating certain details of an otherwise public judicial procedure. In Canada, publication bans are most commonly issued when the safety or reputation of a victim or witness may be hindered by having their identity...

     is imposed by the Gomery commission on Jean Brault's testimony.
  • April 2 — The United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

     blog
    Blog
    A blog is a type of website or part of a website supposed to be updated with new content from time to time. Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in...

    ger Ed Morrissey of Captain's Quarters discloses information about Brault's testimony, countervening the Canadian publication ban. Until the revocation of the ban five days later, the publication itself was a news event in Canada, with Canadian news media struggling to report on the disclosure without putting themselves at risk of legal action.
  • April 7 — The publication ban
    Publication ban
    A publication ban is a court order which prohibits the public or media from disseminating certain details of an otherwise public judicial procedure. In Canada, publication bans are most commonly issued when the safety or reputation of a victim or witness may be hindered by having their identity...

     on Jean Brault's testimony is lifted by the Gomery commission. Brault's testimony triggers a rapid shift in the public opinion of the Liberal Party. Whether or not the government is defeated in the imminent confidence vote, most political pundits are predicting an election call this year—many predicting by this summer.
  • April 20 — The official opposition party, the Conservatives
    Conservative Party of Canada
    The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum...

    , puts forward a non-confidence motion in the government. Due to procedural rules, this vote which was to be held May 3 was postponed. If a non-confidence motion passes, the government will be dissolved and a new election will be held.

  • April 21 — A national televised appearance by Prime Minister Paul Martin
    Paul Martin
    Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

     discusses the scandal. This was highly unusual in Canadian politics. The Prime Minister announced that a general election
    General election
    In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...

     will be called within 30 days of Justice Gomery's final report. Martin emphasised that he was trying to clean up the scandal and had not been involved. In the following rebuttal speeches, Jack Layton
    Jack Layton
    John Gilbert "Jack" Layton, PC was a Canadian social democratic politician and the Leader of the Official Opposition. He was the leader of the New Democratic Party from 2003 to 2011, and previously sat on Toronto City Council, serving at times during that period as acting mayor and deputy mayor of...

     of the New Democratic Party
    New Democratic Party
    The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in...

     offered to keep the parliament alive, provided the Liberal Party makes some major concessions in the budget in their favor. However, the other Opposition parties were still ready to bring down the government and force an election before the summer.
  • May 10 — The Conservatives and Bloc Québécois win a vote, by 153-150, in the House of Commons
    Canadian House of Commons
    The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...

     on what they argue is equivalent to a no confidence motion; three MPs are absent due to health reasons. The motion ordered a committee of the House of Commons to declare that the government should resign rather than being a direct motion on the House's confidence in the government. The opposition parties and several constitutional experts claim that the motion is binding and that the government must resign or immediately seek the confidence of the House; the government and several opposing constitutional experts suggest that this motion was merely procedural and therefore cannot be considered a matter of confidence. Ultimately, only the Governor General
    Governor General of Canada
    The Governor General of Canada is the federal viceregal representative of the Canadian monarch, Queen Elizabeth II...

     has the power to force an election, it is not clear what actions tradition would require her to take in such a case.
  • May 11 — The government tells the House that it will consider a vote to be held on May 19 on the budget, including the concessions which the Liberal party ceded to the NDP in turn for their support on it, to be a matter of confidence. The government refuses to directly seek the confidence of the House and blocks the Opposition from putting any vote to the House; in consequence the Opposition continues a policy of non-cooperation and disruption of the other business of the House.
  • May 17 — Conservative MP Belinda Stronach
    Belinda Stronach
    Belinda Caroline Stronach, PC is a Canadian businessperson, philanthropist and former politician. She was a Member of Parliament in the Canadian House of Commons from 2004 to 2008. Originally elected as a Conservative, she later crossed the floor to join the Liberals...

     crosses the floor
    Crossing the floor
    In politics, crossing the floor has two meanings referring to a change of allegiance in a Westminster system parliament.The term originates from the British House of Commons, which is configured with the Government and Opposition facing each other on rows of benches...

     to the Liberals and is simultaneously given the Cabinet position of Minister of Human Resources and Skills Development as well as made Minister responsible for Democratic Renewal. Prime Minister Paul Martin
    Paul Martin
    Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

     states that Stronach will be responsible for implementing the recommendations of the Gomery commission, a statement that Opposition critics claim casts doubt on the sincerity of the Prime Minister's promise for an election within 30 days of the tabling of Justice Gomery's report. For some time afterwards, media attention is focused away from Gomery testimony onto Stronach's move and its implications on the budget vote.
  • May 19 — The government passes the first of two budget bills easily after the Conservatives promise support, but the second bill with the NDP concessions ends as a cliffhanger. Speaker Peter Milliken
    Peter Milliken
    Peter Andrew Stewart Milliken, UE is a Canadian lawyer and politician. He was a member of the Canadian House of Commons from 1988 until his retirement in 2011 and served as Speaker of the House for 10 years beginning in 2001. Milliken represented the Ontario riding of Kingston and the Islands as a...

     breaks a 152-152 tie in favour of the bill, keeping the government alive.
  • November 1 — Gomery's preliminary report into the scandal is released. The report criticizes Chrétien and his office for setting up the sponsorship program in a way as to invite abuse, and Gagliano as the Minister of Public Works for his behaviour. Prime Minister Paul Martin
    Paul Martin
    Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

     is formally cleared of any responsibility or wrongdoing in the matter as Gomery found his role as Finance Minister was to set up a 'fiscal framework' at the instruction of then Prime Minister Chrétien, but did not have oversight on the spending of the funds after they were passed to Chrétien's Prime Minister's Office.
    Conservative leader Stephen Harper
    Stephen Harper
    Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election...

     and Bloc Québécois leader Gilles Duceppe announce their intention to try to force a pre-Christmas election; however, New Democrat leader Jack Layton says that he will try to have the Liberals implement some New Democrat policies, particularly with regard to a ban on private healthcare as the price for his support in keeping the government up.
  • November 28 — The Liberals refuse to agree to the New Democrats' terms and the latter withdraws their support. The Liberals also turn down a motion sponsored by the three opposition parties which would have scheduled a February election in return for passing several key pieces of legislation. As a result, the Liberal government loses a confidence vote in the House by 171 to 133, resulting in the fall of the minority government and triggering a mid-January election
    Canadian federal election, 2006
    The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...

     after a long holiday election campaign that is expected to be dirty and hard-fought.

2006

  • January 23 — After twelve consecutive years in power, the ruling Liberals are defeated in the general election
    Canadian federal election, 2006
    The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...

    . The Conservatives have enough seats to form a minority government. Paul Martin immediately announces that he will not contest the next federal election as party leader, and Bill Graham
    Bill Graham
    William Carvel "Bill" Graham, PC QC is a former Canadian politician, who served as Minister of Foreign Affairs, Minister of National Defence, and Leader of the Opposition and interim Leader of the Liberal Party of Canada.-Personal life:...

     is appointed interim parliamentary leader.
  • February 1 — Justice John Gomery delivered his final report consisting mostly of recommendations for changes to the civil service and its relation to government.
  • February 6 — The new Conservative government, led by Stephen Harper, are officially sworn in as the new government in Canada. Stephen Harper becomes Canada's 22nd Prime Minister.
  • March 18 — Paul Martin resigns the leadership of the Liberal party, handing the post to Bill Graham for the interim.
  • May 5 — after pleading guilty to five counts of fraud, Jean Brault was sentenced to 30 months in prison.
  • May 11 — the Conservative government is reportedly preparing to file a lawsuit against the Liberal party.
  • June 6 — Chuck Guité was convicted on five counts of defrauding the Government of Canada; on June 19, he was sentenced to 42 months in prison.

2007

  • April 27 — Jean Lafleur
    Jean Lafleur
    Jean Lafleur is a Canadian businessman famous for his role in the Liberal Party of Canada Sponsorship scandal.-Role in Sponsorship scandal:On April 27, 2007, Lafleur returned to Canada from a two-year stay in Belize, where he was reported to have lived in an exclusive villa and enjoyed fine wines....

    , after returning from two years in Belize
    Belize
    Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...

    , pleaded guilty to 28 counts of fraud. He was sentenced to 42 months in prison, and was ordered to repay $1.6 million to the federal government.

Political consequences

Within the Liberal Party
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

 during 2004-05, revelations of scandal and the subsequent Gomery Commission highlighted the rift between the "Chrétien camp" and "Martin camp"
2004 Liberal Party of Canada infighting
The period between Paul Martin's assumption of the leadership of the Liberal Party of Canada on November 14, 2003, and the 2004 federal election being called on May 23, 2004, saw a considerable amount of infighting within the party...

. These two groups had been fighting perhaps even prior to Chrétien's election as party leader in 1990; the Chrétienites were descended from long-serving Prime Minister Pierre Trudeau
Pierre Trudeau
Joseph Philippe Pierre Yves Elliott Trudeau, , usually known as Pierre Trudeau or Pierre Elliott Trudeau, was the 15th Prime Minister of Canada from April 20, 1968 to June 4, 1979, and again from March 3, 1980 to June 30, 1984.Trudeau began his political career campaigning for socialist ideals,...

 while the Martinites were linked to the right-leaning (and briefly Prime Minister) John Turner
John Turner
John Napier Wyndham Turner, PC, CC, QC is an English Canadian lawyer and retired politician, who served as the 17th Prime Minister of Canada from June 30 to September 17, 1984....

.

The Liberals, for the most part, have weathered the damage from the scandal by pointing out the conclusions of reports of the Auditor General and the Gomery Commission: misdeeds were committed by a small, isolated, and corrupt subculture within the previous Liberal government and in particular the PMO of former Prime Minister Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....

.

Similarly, supporters of then Prime Minister Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

 argued that the "culture of corruption" was a byproduct of Chrétien's leadership and that any malicious elements had been purged, both from the government and the party, since the discoveries of wrongdoing. When he assumed the leadership of the party and then the country, Martin made an active effort to dissociate the Liberals and himself from Chrétien's supporters, arguing these individuals were implicated in the scandal, thus hoping to illustrate that the Liberal Party bore little or no connection or resemblance to party elements involved in the sponsorship program.

Martin supporters contend that many Chrétien loyalists left with or shortly after Chrétien left in 2004, before the scandal was revealed. They point to the departure of John Manley
John Manley (politician)
John Paul Manley, PC, OC is a Canadian lawyer, businessman and politician. He served as Liberal Member of Parliament for Ottawa South from 1988 to 2004, and a Cabinet Minister from 1993 to 2003. He is presently President and CEO of the Canadian Council of Chief Executives.-Background:Manley was...

 and other Chrétien cabinet ministers from the party, many of whom did not stand for candidacy in the 2004 federal election
Canadian federal election, 2004
The Canadian federal election, 2004 , was held on June 28, 2004 to elect members of the Canadian House of Commons of the 38th Parliament of Canada. The Liberal government of Prime Minister Paul Martin lost its majority, but was able to form a minority government after the elections...

. Martin's supporters assert those expunged from the party were ejected for their impropriety and not for their leadership affiliations.

Chrétien supporters alleged that Martin used the scandal as an excuse to remove Chrétien supporters from their positions in government and the party. Often cited examples include Martin's major cabinet change after taking power and Martin's refusal to sign nomination papers of MPs who were known to support Chrétien, with many of these controversial moves occurring before the sponsorship scandal broke out.

The Chrétien camp also contended that the Gomery Commission was established to make them look bad, and that it was an unfair investigation. Martin's supporters responded to such allegations by pointing out that the commission was set up to search for facts under independent judicial oversight. They also argued that Justice Gomery's commission operated without undue influence from Martin or anyone outside of the investigation, having all due and necessary authority
Authority
The word Authority is derived mainly from the Latin word auctoritas, meaning invention, advice, opinion, influence, or command. In English, the word 'authority' can be used to mean power given by the state or by academic knowledge of an area .-Authority in Philosophy:In...

 to investigate and draw conclusions on the matter. Chrétien's supporters were outraged that they shouldered all of the blame for the scandal, even though the commission was directed not to make any conclusions or recommendations on criminal charges or civil liability.

Detractors of Martin's innocence point out that he had a particularly powerful role in government, not only because of being Finance Minister, but also because he had significant support within the party due to his strong showing in the 1990 leadership contest. This forced Chrétien to make concessions to Martin, allowing the latter to wield considerable influence. Another cited example was a speech that Martin made in 1995, stating that separatism would be bad for Quebec's economy, which damaged support for federalism in the province and relegated Martin to a backroom role in fighting the referendum.

Many inside and outside of the Liberal Party contended that, going into the 2006 election, Martin-vs.-Chrétien issues
2004 Liberal Party of Canada infighting
The period between Paul Martin's assumption of the leadership of the Liberal Party of Canada on November 14, 2003, and the 2004 federal election being called on May 23, 2004, saw a considerable amount of infighting within the party...

 are effectively behind the Liberals. There were few publicized nomination battles, although some Chrétien strategists complained that they have been left out. Formally, the two leaders have remained publicly respectful of each other.

Critics of the Liberal Party and even former Liberals, like Sheila Copps
Sheila Copps
Sheila Maureen Copps, PC is a former Canadian politician who also served as Deputy Prime Minister of Canada from November 4, 1993 to April 30, 1996 and June 19, 1996 to June 11, 1997....

, argued that the sponsorship scandal has highlighted a "culture of corruption" within the Canadian government. Some Conservative critics alleged that the problems within the Liberal Party are so systematic it could only be effectively reversed (or cured) by a change of government and argue that the Liberals, who had been in power for over a decade, were too arrogant and complacent to be trusted with instituting necessary reforms. The sponsorship crisis thus became a key election issue, and remained a rallying-point for conservative opponents of the Liberals in the 2006 federal election
Canadian federal election, 2006
The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...

.

Quebec sovereigntists
Quebec sovereignty movement
The Quebec sovereignty movement refers to both the political movement and the ideology of values, concepts and ideas that promote the secession of the province of Quebec from the rest of Canada...

—led by the Bloc Québécois
Bloc Québécois
The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative...

 in the federal parliament and the provincial Parti Québécois
Parti Québécois
The Parti Québécois is a centre-left political party that advocates national sovereignty for the province of Quebec and secession from Canada. The Party traditionally has support from the labour movement. Unlike many other social-democratic parties, its ties with the labour movement are informal...

—have cited the scandal as "proof" of institutional corruption and dysfunctionality of the federal government
Federalism
Federalism is a political concept in which a group of members are bound together by covenant with a governing representative head. The term "federalism" is also used to describe a system of the government in which sovereignty is constitutionally divided between a central governing authority and...

. Critics have argued that the entire sponsorship scandal, originally intended to encourage pro-Canada sentiment in Quebec, has done exactly the opposite and instead, emboldened separatist forces in Quebec: polls before the election indicated increased support for sovereignty, rising to approximately 53% (around 19 December 2005). Ultimately support for separatism declined and the Bloc Québécois lost both popular vote and seats in the Parliament of Canada
Parliament of Canada
The Parliament of Canada is the federal legislative branch of Canada, seated at Parliament Hill in the national capital, Ottawa. Formally, the body consists of the Canadian monarch—represented by her governor general—the Senate, and the House of Commons, each element having its own officers and...

 in the 2006 Federal Election
Canadian federal election, 2006
The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...

.

The New Democratic Party
New Democratic Party
The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in...

 (NDP) caucus of Jack Layton
Jack Layton
John Gilbert "Jack" Layton, PC was a Canadian social democratic politician and the Leader of the Official Opposition. He was the leader of the New Democratic Party from 2003 to 2011, and previously sat on Toronto City Council, serving at times during that period as acting mayor and deputy mayor of...

 has also been criticized for alleging major corruption in the Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

, while simultaneously working with the Martin government to achieve NDP policy objectives.

Unlike the 2004 Election
Canadian federal election, 2004
The Canadian federal election, 2004 , was held on June 28, 2004 to elect members of the Canadian House of Commons of the 38th Parliament of Canada. The Liberal government of Prime Minister Paul Martin lost its majority, but was able to form a minority government after the elections...

, the Conservatives did not spend the initial part of the campaign attacking the Liberals for Adscam. The sponsorship scandal was brought back to national attention after an NDP member tipped off the RCMP to launch a criminal investigation into the Finance Department, regarding allegations of insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 from the leaking of the news on the taxable status of income trusts.

The Conservative minority government of Stephen Harper introduced the Federal Accountability Act
Federal Accountability Act
The Federal Accountability Act is a statute introduced as Bill C-2 in the first session of the 39th Canadian Parliament on April 11, 2006, by the President of the Treasury Board, John Baird...

 which included new lobbying rules and electoral law reform; it was granted royal assent on December 12, 2006. Still unfulfilled are promises for a Public Appointments Commission and registrar for lobbyists which is an independent officer of Parliament http://www.theglobeandmail.com/servlet/story/LAC.20070810.GOMERY10/TPStory/National.

Communication Canada
Communication Canada
Communication Canada was an agency of the Department of Public Works and Government Services in the Government of Canada. Its responsibility was primarily for keeping federal government departments and their agencies connected with Canadian citizens...

 was created after the results of the 1995 Quebec referendum
1995 Quebec referendum
The 1995 Quebec referendum was the second referendum to ask voters in the Canadian province of Quebec whether Quebec should secede from Canada and become an independent state, through the question:...

 to increase intergovernmental communications. The agency was connected to the scandal and labelled as a propaganda
Propaganda
Propaganda is a form of communication that is aimed at influencing the attitude of a community toward some cause or position so as to benefit oneself or one's group....

 machine and eventually disbanded in 2004.

See also

  • List of Canadian political scandals
  • Politics of Canada
    Politics of Canada
    The politics of Canada function within a framework of parliamentary democracy and a federal system of parliamentary government with strong democratic traditions. Canada is a constitutional monarchy, in which the Monarch is head of state...

  • Gomery Commission
    Gomery Commission
    The Gomery Commission, formally the Commission of Inquiry into the Sponsorship Program and Advertising Activities, was a federal Canadian Royal Commission headed by the retired Justice John Gomery for the purpose of investigating the sponsorship scandal, which involved allegations of corruption...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK