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Gomery Commission issues first report

The Gomery Commission yesterday issued its first report on abuses of the Government of Canada's sponsorship program dating back to 1995. Among the commission's major findings are "clear evidence" of political involvement in the administration of the program, insufficient oversight at "very senior levels" of the public service which allowed program managers to circumvent proper procedures, a "veil of secrecy" around the administration of the program and a lack of transparency in the contracting process, "gross overcharging" and inflated commissions from communications agencies, deliberate avoidance of federal legislation and policies, "kickbacks and illegal contributions" to a political party in the context of the sponsorship program, and a "culture of entitlement" among the political officials and bureaucrats involved.
The report identifies three main factors that caused or contributed to these problems: The decision by former Prime Minister Jean Chretien to direct the sponsorship program from the Prime Minister's Office, bypassing the normal departmental procedures of Public Works and Government Services; the failure of Public Works Deputy Minister Ranald Quail to provide safeguards against the misuse of public funds; and the deliberate lack of transparency in the operation of the program. Chretien's former chief of staff Jean Pelletier, former Public Works minister Alfonso Gagliano, and Chuck Guite, the civil servant in charge of running the program, are also picked out by the report as having failed to take action to prevent or reverse the abuses of the program. In addition, the report notes that allowing the program to be administered by private sector communication agencies was "an open invitation to unscrupulous persons to reap unjustified or exaggerated profits."
The report also addresses the funding of the Quebec Liberal Party through kickbacks obtained by Jacques Corriveau from the five agencies which received most of the program's contracts: Lafleur, Gosselin, Groupaction, Everest and Coffin. The report does not find Chretien or Pelletier responsible for this abuse. The report also finds that Chretien's other ministers, including then-Finance Minister Paul Martin, had no knowledge of the problems with the sponsorship program due to the secrecy surrounding its operation.
In a statement yesterday, Prime Minister Paul Martin said that he accepted the report's findings and conclusions, and that he has referred the report to the RCMP for "any and all appropriate action." The Gomery Commission is due to issue a second report in three months outlining solutions to the problems detailed yesterday. In his statement, Martin said that he will call a general election within 30 days of its release. Jean Chretien also released a statement yesterday announcing his intention to challenge the findings of the report in Federal Court.

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