Three separate inquiries have sprung up following the release of Auditor General Sheila Fraser's report, which revealed that $100 million was misspent in a federal government sponsorship program in Quebec: a public inquiry, a parliamentary inquiry and a criminal investigation.

The federal government has also launched two other probes into the scandal. One will try to recover lost funds, and another will try to determine how Crown corporations became involved in the scandal.

On Tuesday, Feb. 24, Prime Minister Paul Martin suspended the heads of three Crown corporations:

• Marc LeFrancois, president of Via Rail, was suspended without pay as a result of the auditor general's report into the sponsorship scandal.

Marc LeFrancois, president of Via Rail, ( Public information, English from : Via Rail internet site,  French from Via Rail internet site and from Actualite Internet site  )

• Andre Ouellet, president of Canada Post, was suspended with pay as a result of the auditor general's report into the sponsorship scandal.

Actualite Internet site
• Michel Vennat, president and CEO of the Business Development Bank of Canada, was suspended because of Justice Andre Denis's recent ruling on Vennat's role in the so-called Shawinigate affair - the loan controversy in which former BDC executive Francois Beaudion was wrongfully dismissed.

Michel Vennat strange reference from his association and competency

Public inquiry

What is it?
The public inquiry is an independent commission announced Feb. 10, 2004, by Martin. He described it as having a "limitless scope."

Its mandate (known as its "terms of reference") is to:

• Identify persons responsible for the creation of the sponsorship program.
• Clarify how communications and advertising agencies were selected.
• Document the management of the sponsorship program by officials at all levels.
• Document the receipt and use of funds and commissions that were disbursed by any person or organization.
• Identify any other circumstance related to the sponsorship program or advertising activities deemed relevant to fulfilling this mandate.

Who is involved?


Mr. Justice John H. Gomery (Photo: Copyright Board of Canada)

See:  "The public Intrigue of John H. Gomery" and, (See: His BIOGRAPHICAL NOTE)

See: The Basic Québec Seeds of this Canadian Scandal

Justice John H. Gomery of the Quebec Superior Court is the head of the inquiry.
Gomery, 72, who has an expertise in family law, commercial litigation and bankruptcy, was appointed to the Quebec Superior Court in 1982. He has to step down as head of the Copyright Board of Canada, which is a federal appointment, before beginning his work on the inquiry.

The opposition criticized Gomery's appointment. Conservative MP and head of the parliamentary inquiry, John Williams, said Gomery lacks objectivity because he has received federal appointments from the Liberal government.

What power does it have?
The commission will have full authority to examine past behaviour of ministers and bureaucrats about the sponsorship program with a view to formulating recommendations to prevent any such abuses, breaches of ethics or mismanagement in the future.

Justice Gomery will have the power (under the Inquiries Act) to hold public hearings, summon witnesses inside or outside government, to gather evidence and to issue interim reports to the public when he thinks it's appropriate.

The inquiry will have the power to turn over any evidence to police, and to the federal government lawyer to recover funds.

When will the report be out?
The inquiry will begin in Montreal, possibly in early March. There is no deadline set, but Martin has asked the commission to proceed in "an urgent manner."

Parliamentary inquiry

What is its mandate?
The committee's mandate is to determine who created the sponsorship program, whether ministers and bureaucrats followed parliamentary rules in conducting the program and whether politicians broke the law.

Who is involved?

John Williams

John Williams, Conservative MP, chair of standing committee on public accounts, is the head of the inquiry. There are 16 other members and dozens of associate members on the public accounts committee who come from all parties in the House of Commons.

What power does it have?
It is the only committee with the power to force the government to reveal secret cabinet documents. In a precedent-setting move, the government has said that parliamentary records - which normally are sealed for 30 years - will be made available to the inquiry. Documents that are only a few months old will be released.

The committee cannot set out to find confidence or non-confidence in the government.

"The public accounts committee would be uncomfortable making a recommendation to the House of Commons that it had no confidence in the ministry," said Williams, "but the priority of the committee is to table the facts and the House could draw that conclusion (of non-confidence in the government) and take it forward if they so desired."

Who is being investigated?
Two names have been made public. The Old Port of Montreal named the chairman of the board Bernard Lamarre, and Pierre Emond, a former CEO, as having signed off on a request for a sponsorship grant.

Canada Post president Andre Ouelette said he is eager to appear before the committee, and both Martin and former prime minister Jean Chrétien have said they will testify, if asked.

On Friday, Feb. 13, the auditor general released a list of people who may be asked to appear as witnesses before a public inquiry into the sponsorship scandal. They are:


• Alfonso Gagliano, former public works minister and ambassador to Denmark.
• Don Boudria, former government House leader and public works minister.
• David Dingwall, former health minister.
• Ralph Goodale, finance minister and former public works minister.
• Jim Judd, Treasury Board secretary.
• Ran Quail, former deputy minister of public works.
• Pierre Tremblay, former director of the sponsorship program.
• Chuck Guité, former director of the sponsorship program.
• Guy McKenzie, former executive director of Communications Canada.
• Marc LeFrancois, president of Via Rail.
• Christina Sirsly, a Via vice-president.


The auditor general says being on the list does not imply any wrongdoing on the part of the potential witnesses.

A full list of witnesses has not yet been set. Auditor General Sheila Fraser was to list more public service employees who may have been involved in the sponsorship program on Thursday, Feb. 19, but then, citing privacy concerns, decided not to release the names.

Criminal investigation

What is it?

An RCMP inquiry has been looking into fraud allegations since May 2002. There are more than 10 investigations already underway and more are expected in the days ahead.

Questions of conflict of interest have forced the RCMP to ask the Sûreté du Québec to get involved in the investigation, because Fraser reported that the RCMP received money through the federal sponsorship program.

The Quebec force's role has not yet been laid out.

Timeline of RCMP and the sponsorship scandal:

March 20, 2002: Boudria calls for an audit of the two reports by Groupaction. He says the auditor general will have the option of asking for a refund or bringing in the RCMP to investigate. A committee looking into Gagliano's qualifications as a new ambassador doesn't allow any questions about his 25 years in politics.

May 8, 2002: Auditor General Sheila Fraser releases a report saying federal bureaucrats broke "just about every rule in the book" in their dealings with the marketing firm Groupaction. The RCMP will look into $1.6 million in federal contracts awarded to the Montreal advertising firm.

May 29, 2002: Public Works Minister Ralph Goodale says that RCMP officers are looking at more files from his department and that new files had been referred to the police.

Sept. 17, 2002: RCMP raids the offices of Groupaction in Montreal; removes files and documents.

Feb. 10, 2004: Auditor General Sheila Fraser's report reveals that the RCMP, Via Rail, Canada Post and the Old Port of Montreal were also tied to faulty money handling concerning the sponsorship program.

Other actions taken by the government

Whistleblower protection:
President of the Treasury Board, Reg Alcock said he would protect bureaucrats who come forward with information about the sponsorship scandal, even though Canada doesn't have "whistleblower" legislation.

"I will undertake to ensure that they have the full protections that they would have as if the whistleblowing legislation was in place."

The government will introduce legislation to protect whistleblowers by March 31, 2004.

The protection does not extend to those who committed criminal activities in the sponsorship program.

The public accounts committee struck a subcommittee to negotiate with the Treasury Board about cutting deals in exchange for testimony from public servants who willingly broke the rules.

Civil litigation:

The government has appointed Andre Gauthier as special counsel for financial recovery with a mandate to pursue all possible avenues, including civil litigation, to recover funds that were improperly received in the sponsorship program.