FEDERAL GOVERNMENT RESPONDS TO AUDITOR GENERAL REPORT
By Adnews Staff
The Government of Canada has announced a number of "corrective measures," including the establishment of an independent inquiry, in response to the Auditor General's report of past sponsorship and advertising activities. In addition to the inquiry, the House of Commons Public Accounts Committee will immediately begin reviewing the Auditor General's report. The government has also appointed André Gauthier, a senior lawyer with Cain, Lamarre, Casgrain, Wells, as special counsel for financial recovery. The report, issued by Auditor General Sheila Fraser, described abuses of the federal government sponsorship program between 1997 and 2001. Over the four-year period, $250 million was put into the program with more than $100 million going to agencies in fees and commissions.