Archives - Paul Martin

February 10, 2004
Ottawa, Ontario

NEWS RELEASE

The Government of Canada today announced a comprehensive set of measures – including the establishment of an independent commission of public inquiry − in response to the Auditor General’s report examining past sponsorship and advertising activities.

These measures will ensure that every effort is made to hold those responsible to account, to recover lost funds, to reform oversight and management practices and to answer all remaining questions concerning the sponsorship program.

“The Auditor General paints a disturbing picture that simply put, this government finds unacceptable,” said Prime Minister Paul Martin. “Consequently, our government is taking every step necessary to uncover what happened and to put in place measures to ensure that no such abuse can be allowed to recur.”

In order to ensure that there is a thorough examination and investigation of all remaining questions relating to the sponsorship and advertising programs, the government will strike an independent Commission of Public Inquiry. The commission will have full authority to examine past behaviour in these programs with a view to formulating recommendations to prevent any such abuses, breaches of ethics or mismanagement in the future. The Commission will be asked to commence its work as soon as possible and to complete it on an urgent basis.

“One of the first actions of the new government was to abolish the sponsorship program,” said Public Works and Government Services Minister Stephen Owen. “Today we go further in an effort to ensure the public knows what happened and can be confident in the steps taken.”

A criminal investigation was initiated that has resulted in charges being laid by the Quebec Attorney General – the investigation is still active.

The government has also taken steps to see that the House of Commons Public Accounts Committee – which is chaired by an Opposition Member – is being struck early so that it can begin the important work of receiving and reviewing the Auditor General’s report right away.

Furthermore, the government is appointing Mr. André 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 by certain parties involved in the delivery of the sponsorship program.

Finally, a series of reforms to the administration of government departments and Crown Corporations are being instituted based on gaps highlighted in the Auditor General’s report.

“The Auditor General has acknowledged that a number of corrective actions have been taken already by the government,” said Treasury Board President Reg Alcock. “But we are determined to do more. We will ensure that ethical standards and management practices in the federal public sector are raised still higher.”

Accordingly, the government will take the following further actions:

• Introduce legislation to protect ‘whistleblowers’ by March 31, 2004 relying in part on the report of the Working Group on the Disclosure of Wrongdoing. This legislation will be referred to committee after first reading and will, among other things, provide measures to protect those who come forward to report mismanagement in the Public Sector, including employees of Crown Corporations.
  
  
• Mandate immediate changes to the governance of Crown Corporations that fall under Part 10 of the Financial Administration Act (FAA) to ensure that audit committees are strengthened. As well, an immediate review will be led by the President of the Treasury Board – to report no later than September 30, 2004 – to examine the possible extension of the Access to Information Act to all Crown Corporations, the adequacy of the current accountability framework and the consistent application of FAA provisions to all Crown Corporations.
  
  
• Report by September 30, 2004 on proposed changes to the FAA in order to enhance compliance and enforcement, including the capacity to recover lost funds and examine whether sanctions should apply to former public servants, Crown Corporation employees and public office holders. This work will be led by the President of the Treasury Board and the results will be publicly tabled with the appropriate Standing Committee of the House of Commons.
  
  
• Report by September 30, 2004 on the respective responsibilities and accountabilities of Ministers and public servants as recommended by the Auditor General. This work will be led by the President of the Treasury Board, relying on the insights of current and former Parliamentarians and other expert advisors. The results will be publicly tabled with the appropriate Standing Committee of the House of Commons.