Captain's Quarters Blog - Adscam Gomery Commission day 1

April 7, 2005. Today, the judge partially lifted the publication ban on the testimony of one person. Here's the information from the US blog that was previously unavailable in Canada. It's a good read.


April 02, 2005


Adscam Trial Delay May End Publication Ban
Canada's Sponsorship Program scandal, called Adscam north of the border, may result in snap elections. At first, this was thought to support the Liberal Party, the undeniable if temporary beneficiary of Judge Gomery's publication ban on key testimony at the Adscam hearings, and for good reason. However, lawyers for Jean Brault now want to delay his upcoming May trial to the fall -- and since the proximity of Brault's trial to his Gomery testimony caused Gomery to impose the ban, a significant delay might force Gomery to lift it. If so, the Liberals could face an enraged Canadian electorate much sooner than planned:
Explosive new testimony at the Gomery commission has created a buzz in Ottawa that the opposition could force a quick election on a Liberal government damaged by the sponsorship scandal. ...
Charged on six counts relating to the way his agency handled five federal contracts, Mr. Brault was slated to have a jury trial beginning on May 2.
Yesterday, however, appearing at a prehearing conference, his lawyer, Harvey Yarosky, told Quebec Superior Court Justice Lise Côté that his legal team was so bogged down by the inquiry that it needs a trial deferment.
Judge Côté said she will announce on Wednesday morning whether the trial will be rescheduled.
The prosecution opposed the request, saying that delaying the trial for four months could lead to the end of the publication ban on Mr. Brault's current testimony at the Gomery inquest.
Crown attorney Jacques Dagenais argued that a postponement would void a key reason Judge Gomery imposed a temporary blackout at his inquiry: the proximity of Mr. Brault's testimony to a trial scheduled for May 2.
Of course, the Liberals would prefer that both the ban and the deferment stay in effect, giving them several months before Brault's explosive testimony can be used in public. That could create a window for them to hold an election and solidify their grip on power in order to withstand the political shockwaves once the record opens on Brault. Any other combination, however, means that the testimony comes out into the open before the Liberals can hold a self-preserving election, unless they can pull one off in April.
Besides, the point may be mostly moot. We published an account of Brault's testimony yesterday and will continue to do so if we can get more information from our source(s) in Canada. Others will follow, and the ill-advised publication ban will collapse under its own weight, exposing the wrongdoers in the Canadian government and allowing Canadians to have the information necessary to make an intelligent decision about their leadership.
Posted by Captain Ed at 09:38 AM Comments (15) TrackBack

Canada's Corruption Scandal Breaks Wide Open
A political scandal involving the Public Works Ministry, a government effort called the Sponsorship Program, and allegations of corruption in the ruling Liberal Party has Canada abuzz with rumors of payoffs, Mob ties, and snap elections. For the last two years, Canadian politics has been gripped by the so-called “sponsorship scandal” – tens of millions of dollars in government contracts which were funneled into advertizing firms closely connected with the Liberal government for little or no work, but with shadowy rumours that much of the money found its way back into Liberal coffers. Prime Minister Paul Martin, himself a Liberal, appointed the Gomery Commission to investigate these charges and determine whether to bring charges against government officials for corruption and malfeasance. (See the blog Small Dead Animals for some excellent background on the case.)

Most of the testimony heard by the Commission has been public, but Judge Gomery has decided to create a publication ban on the testimony of three key witnesses: Jean Brault, president of the ad agency Groupaction, Charles Guité, an officer of the Public Works ministry who worked on the Sponsorship Program, and Paul Coffin, president of the ad agency Coffin Communications. The potential damage of their testimony has so unnerved the Liberal Party that they have reportedly started working towards a snap election so that they will not have to face the voters once the facts surface from the record.

And well they might, if Brault's testimony gives any indication of what they will face. Thanks to a friend of mine, CQ readers can get a taste of what Brault has already told the Gomery Commission. For obvious reasons, I cannot reveal this person's name or position, but this person is in a position to have the information. Bear in mind that this comes from a single source, so while I have confidence in the information, you should consider the sourcing carefully.

Payoffs And Kickbacks
On Thursday, Jean Brault began his testimony, subject to the publication ban, and revealed a massive pattern of corruption going to the highest levels of the Liberal party and government. Brault testified to hundreds of thousands of dollars of bogus transactions designed to benefit the Liberal Party of Canada over a period from 1994 to 2002.

Most of the illegal campaign contributions involved Brault either hiring “employees” -- who were in fact working full time on Liberal Party activities -- or paying invoices for Liberal Party campaign expenses (which were never declared as such) or making untraceable cash donations to Liberal officials. In exchange for helping the federal Liberals in Quebec, Brault received millions of dollars in federal advertising contracts.

Brault said he met with Jean Carle, a key aide to then Prime Minister Jean Chretien to propose a more direct way of ensuring that Groupaction got a large share of federal advertising dollars in Quebec. Carle referred Brault to federal bureaucrat Charles (“Chuck”) Guité and told him that “there was room for everybody.” Guité later put together the sponsorship program, in which five Liberal connected firms -- including Groupaction -- were guaranteed a monopoly on government “sponsorship” advertising (e.g. federaladvertising at sporting or cultural events) and related work. The sponsorship program eventually became a huge slush fund into which over $250 million was poured, over $100 million of which was paid in fees and commissions to these five advertising firms, with little or any evidence of work done or value for money.
In exchange for these large contracts for little or no work, Brault kicked back generously to the Liberal Party, putting Liberal organizers on his payroll while they continued to perform party work (including, at one point, Prime Minister Jean Chrétien’s brother, Gaby Chrétien), paying invoices to other companies for work actually done for the Liberal Party, and giving large donations -- in cash -- to the Liberal Party through Renaud or Liberal Party organizer (and close associate of Public Works Minister Alfonso Gagliano) Joe Morselli.

Protection Racket?
Towards the later part of the sponsorship program, the friends and associates of Public Works Minister and former ambassador to Denmark Alfonso Gagliano, some of whom have been linked to organized crime, played a larger role in the schemes.
At one point, Gagliano associate Tony Mignacca told Brault that if he didn’t rehire Renaud (who had left Groupaction to start a new company), he would lose his newly acquired contract with Via Rail -- Canada’s state-run passenger rail service. Brault broke down in tears after he recounted this testimony. At a meeting in 2001 with Joe Morselli, Brault said that he arranged to have the meeting in an overheated room in a restaurant -- so that Brault could ask Morselli to take off his coat and ensure that he wasn’t carrying a body pack.
This is just the beginning of Brault's testimony. If the Gomery Commission can corroborate Brault, then the reek of corruption goes through all levels of the Liberal party and may explain their ability to out-campaign the Conservatives. After all, they've siphoned off hundreds of millions of government dollars to promote their own party and to guarantee their monopoly on power. They hijacked the Canadian tax base to fund their own campaigns and hide the financial trail.

More will be forthcoming, but it isn't difficult to understand why Liberal politicians have begun to panic already.
UPDATE: Welcome, Instapundit readers!
Posted by Captain Ed at 05:30 PM Comments (115) TrackBack