Sponsorship scandal

"Adscam" redirects here. For the American sting operation, see Abscam.

The sponsorship scandal, "AdScam" or Sponsorgate, is a scandal that came as a result of a Canadian federal government "sponsorship program" in the province of Quebec and involving the Liberal Party of Canada, which was in power from 1993 to 2006. The program was originally established as an effort to raise awareness of the Government of Canada's contributions to Quebec industries and other activities in order to counter the actions of the Parti Québécois government of the province that worked to promote Quebec independence.

The program ran from 1996 until 2004, when broad corruption 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 in Quebec. Such misdirections included sponsorship money awarded to Liberal Party-linked ad firms in return for little or no work, in 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 Paul Martin. It was an ongoing affair for years, but rose to national prominence in early 2004 after the program was examined by Sheila Fraser, the federal auditor general.

Her revelations led to the Martin government establishing the Gomery Commission to conduct a public inquiry 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; it is commonly referred to as the "Gomery Report". In the end, the Commission concluded that $2 million was awarded in contracts without a proper bidding system, $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 $1.14 million was repaid. The Commission found that a number of rules in the Financial Administration Act were broken. The overall operating cost of the Commission was $14 million.[1]

In the national spotlight, the scandal became a significant factor in the lead-up to the 2006 federal election when, after more than twelve years in power, the Liberals were defeated by the Conservatives, who formed a minority government that was sworn in February 2006.

Involved parties

Timeline

1995

1996

2000

2002

2004

2005

2006

2007

2007 onward

The sponsorship scandal continues to serve as one of the most recognized scandals of Canadian public funds administration. Changes in procurement processes, partly driven by the sponsorship scandal, were enacted and continue to evolve.

See also

References

  1. CBC.ca News Indepth: Federal Sponsorship Scandal
  2. MacCharles, Tonda (2008-06-27). "Gomery was biased in report, judge rules". Toronto: The Star. Retrieved 2010-02-21.
  3. Gomery, John (November 1, 2005). "Who is Responsible?" (PDF). Her Majesty the Queen in Right of Canada. Retrieved 2013-08-26.
  4. Jeffrey, Brooke Divided Loyalties: The Liberal Party of Canada, 1984 - 2008, Toronto: University of Toronto Press page 198.
  5. Gomery, John (November 1, 2005). "Who is Responsible?" (PDF). Her Majesty the Queen in Right of Canada. Retrieved 2013-08-26.
  6. "Chrétien's Aide recounts phoney paper trail". CBC News. February 4, 2005. Retrieved 2013-11-27.
  7. CBC.ca News Indepth: Federal Sponsorship Scandal
  8. Martin, Lawrence Iron Man, Toronto: Viking, 2003 page 358
  9. National Post article
  10. CBC.ca News Indepth: Federal Sponsorship Scandal Timeline
  11. Toronto Star article
  12. Globe and Mail insider edition article
  13. Toronto Star article
  14. Cyberpresse article
  15. Captain's Quarters posting
  16. Edmonton Sun article
  17. CBC article: Liberals will not quit despite losing vote
  18. Government may sue Liberals for sponsorship funds: report

Further reading

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