AdScam: Lieberals paid $59,000 for "neckties", etc.
http://www.theglobeandmail.com/serv...Story/National/
Ottawa paid $59,000 for neckties
As Chrétien prepares to testify, more lavish spending is revealed
By DANIEL LEBLANC
From Tuesday's Globe and Mail
POSTED AT 2:22 AM EST Tuesday, Feb 8, 2005
Ottawa — The Prime Minister's Office of Jean Chrétien ordered $46,000 worth of neckties with a Canadian flag on them in 1998 through two Liberal-friendly firms that netted $13,000 on top of that in fees on the purchase.
The 480 ties, which cost taxpayers about $120 each, were handed out by Canadian delegations in foreign countries.
"I thought that Canada deserved a necktie that held its own," Jean Pelletier, the long-time PMO chief of staff, testified yesterday.
Mr. Pelletier said he was outraged when he recently learned the extent of the fees and commissions that outside firms charged on the deal.
"I was scandalized. All those costs, it didn't make any sense," he told Mr. Justice John Gomery.
The Gomery inquiry has heard before about strange purchases under the sponsorship program, including $10,000 for corkscrews with a Canadian logo on them and $1,200 for golf balls emblazoned with Mr. Chrétien's signature.
Mr. Chrétien will be asked about the golf balls today when he testifies about his direct role in the creation of the program in 1996, and the responsibilities of the PMO in the program's management.
Mr. Pelletier said he asked his director of operations, Jean Carle, to oversee the neckie deal, which was handled through bureaucrats in the sponsorship program.
Documents released at the Gomery inquiry show that both Pluridesign Canada Inc. and Lafleur Communication & Marketing worked on the purchase.
Pluridesign is owned by Jacques Corriveau, a long-time organizer for Mr. Chrétien. The design firm charged $4,500 for the project, including fees for "strategic research" and other creative services.
It was revealed at the inquiry last week that Mr. Corriveau's firm reaped "many millions" of dollars in subcontracts on other projects that received sponsorship funds between 1996 and 2002.
After the mid-1990s, Lafleur Communication developed close connections with a number of senior Liberal officials. Mr. Carle and Mr. Pelletier, among other witnesses, have testified before Judge Gomery that they started socializing with the president of the firm, Jean Lafleur, after the Liberals came to office in 1993.
In addition, Lafleur Communication was a generous donor to the Liberal Party of Canada at the time.
For its services, the firm added a commission of 17.65-per cent, worth $8,200, to purchase the 480 neckties.
Among other things, the firm showed necktie samples to Mr. Pelletier for his approval.
Earlier in his testimony, Mr. Pelletier revealed that Mr. Lafleur approached him in 1998 to complain that his volume of sponsorship contracts was sharply dropping.
Mr. Pelletier said he told Mr. Lafleur to send the numbers to the PMO, where a fax arrived a few days later showing that Lafleur Communication had received $2.5-million in contracts that year, down from $8.3-million in the previous year.
Mr. Pelletier said he received Mr. Lafleur's fax, but did nothing with it.
Over all, Mr. Pelletier told the inquiry that he had nothing to do with the advertising firms that reaped $100-million in fees and commissions from the program. In particular, Mr. Pelletier said he was unaware of their donations to the Liberal Party.
"We have never selected an agency in the Prime Minister's Office for what you call the sponsorship program," Mr. Pelletier said.
Mr. Pelletier acknowledged that he had input in the management of the program to ensure that it reinforced the presence of Canadian symbols in postreferendum Quebec. Mr. Pelletier said that he and Mr. Carle brought a deep understanding of Quebec to the program and that they made sure that money went to events in the more separatist regions of Quebec.
"I would have been more favourable to funding an event in Alma [in the Lac-St-Jean region] than in Westmount," he said.
Mr. Pelletier said that while he had an impact on the decision-making process, the bureaucrats always had the final word.
"We made recommendations, and we made some strong recommendations, but the decision was not ours," he said.
Mr. Pelletier rejected the testimony of retired bureaucrat Chuck Guité that Liberal officials called almost all of the shots in the sponsorship program.
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Last edited by ShadoWolf on Feb-27-2005 at 20:44
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