Accounting for Gomery: the Money Links Between the Federal Government, Political Parties, and Private Interests

Fraser Institute Digital Publication July 2005

Accounting for Gomery: The Money Links Between the Federal Government, Political Parties, and Private Interests

Mark Mullins, PhD

Contents

Executive summary / 2 Context / 3 Introduction / 4 Financial flows context / 5 Methodology / 7 The Liberal party reports / 7 The Kroll Lindquist Avey report / 11 Gomery inquiry testimony / 14 Conclusions and recommendations / 14 Appendix A: Identified Organizations and Individuals / 18 References / 34 Acknowledgements / 35 About the author / 35 About this publication / 36 About The Fraser Institute / 37 Accounting for Gomery 2

Executive summary

• The numbers of people and amounts of money involved in the Gomery inquiry are larger than previously known. Problems with federal government sponsorship and advertising programs can be understood using an economic theory of incentives and institutional structure.

• This study finds that at least 565 organizations and individuals are identified in reports and testimony related to the Gomery inquiry. The original 2003 Auditor General sponsorship and advertising report cited only 71 organizations. The activities under investigation are therefore quite widespread.

• The people identified in these reports and testimony are politicians and bureaucrats (government insiders), and political party members and business people (government outsiders). This paper finds that almost all of them have an exclu- sive financial link to the Liberal Party of Canada (hereafter referred to as the Lib- eral party). They donated at least 40 times more to the Liberal party than to all of the other main political parties combined from 1993 to 2003.

• This paper finds that these individuals privately donated at least $3.9 million to the Liberal party and received at least $7.4 million in private payments from the Liberal party from 1993 to 2003. The Gomery inquiry forensic report found only $2.5 million in Liberal party donations.

• The same people also received public (tax funded) payments from the federal government, and this was the underlying incentive that encouraged inappropriate behaviour and relationships. These incentives can be specifically identified:

• Government insiders benefited through salaries, staffing, budgets, and political influence accruing to senior ministers and bureaucrats from access to $120 million in public funding of the federal cabinet, and

• Nearly $1.2 billion in directed sponsorship and advertising contracts were awarded to government outsiders, generating at least $190 million in private benefits through outsider salaries, bonuses, and profits

• The economic rent (or unearned financial benefits) captured by the government outsiders was almost 50 times larger than their political donations to the governing Liberal party. This cash incentive may have been the driving force that resulted in misdirected and wasted taxpayer funds.

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• There were also specific conflicts of interest involved in the financial relationships between the Liberal party and a number of organizations, including the RCMP, the Privy Council Office and the federal government’s two largest advertising firms, that have not yet been adequately reported on by the media.

• The money links outlined here are significant underestimates of the underlying relationships.

Context

The Auditor General and the Gomery Commission have investigated allegations that taxpayer funds were misused in federal government sponsorship and advertising activities. This paper provides the first comprehensive assessment of the private money links between federal political parties and people associated with the sponsorship and advertising investigations. The purpose is to provide a fuller understanding of both the public and private financial links between the federal government, political parties, and private individuals than has yet been established.

The analysis of this paper continues the work in a series of value-for-money studies began last year with an assessment of Auditor General reports from 1997 to 2003 (Clem- ens et al., 2004). The current paper lays out the tripartite financial links between government, political parties and the private sector using publicly available Elections Canada data and several audit sources, including two reports commissioned by the Liberal party. Applying a Public Choice theoretical analysis1 to this case study reveals that there exist significant incentives for insider and outsider rent seeking2 of the kind that was identified in the preceding Fraser Institute report. A further finding is that these numbers are significant underestimates of the true underlying financial links.

1 Public Choice uses economic tools and methods to model the behaviour of voters, politicians, bureaucrats, and special interest groups to explain political outcomes. A key assumption is that all of these people act in their own self-interest. 2 Rent seeking is defined as money and effort expended by individuals or groups to obtain public benefits (or rents) from government. This results in a misallocation of public spending that is paid by everyone else in society.

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Introduction

The Gomery Commission of Inquiry into the Sponsorship Program and Advertising Activities began hearings on September 7, 2004 and completed final arguments on June 17, 2005. Justice John Gomery heard testimony from 183 witnesses over those nine months. This produced more than 180,000 pages of transcripts and evidence and 28 million estimated pages of related documents (Globe and Mail, June 4, 2005, p. A8; Kroll Lindquist Avey Report, May 18, 2005).

Inside this sea of information, there was little apparent media interest in analyzing two reports commissioned by the Liberal party, one for the Quebec wing of the party and the other for its national organization (Federal Liberal Agency of Canada, 2004; Federal Lib- eral Agency of Canada (Quebec), 2004). The Quebec report was commissioned on March 22, 2004 and the other was likely commissioned after July 15, 2004.3 Both were delivered to the Liberal party in the period between the June 28, 2004 election and the September start of the Gomery inquiry.

The reports were written by two chartered accounting firms (Samson Belair/Deloitte & Touche, 2004; PricewaterhouseCoopers LLP, 2004). They are accounting reviews of the organizations and individuals identified by Auditor General Sheila Fraser in her Novem- ber 2003 report on federal government sponsorships and advertising (Fraser, 2003). Together, the reports track donations from these people to the Liberal party and payments by the Liberal party to these same people. The work was later extended in the May 18, 2005 Kroll Lindquist Avey forensic accounting report, commissioned by Judge Gomery at a reported cost of $7.5 million in taxpayer funds (MacDonald, 2005: A22).

This paper documents the two Liberal party reports, highlighting their significant find- ings and limitations. Additional information is examined from the Kroll Lindquist Avey report and from the Elections Canada party financing database. Donations from sponsorship and advertising organizations and individuals are tracked for all of the main federal political parties. These money flows are placed within the context of the tripartite relationship between the government, political parties, and the private sector.

3 The national report was likely commissioned after the July 15, 2004 reporting date of the Quebec report, as it uses an almost identical list of named parties (organizations and individuals) as the Quebec report and some identical text passages.

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Financial flows context

Figure 1 lays out the channels of all possible financial flows between Figure 1: General Financial Flows government, political parties, and the private sector. For example, money can flow from the government to private contractors in exchange for services rendered. Individuals (and organizations prior to the 2004 election financing reforms) can donate funds to political parties. Politicians can receive funds from government in the form of salaries and other monetary benefits.

There are specific payment channels for the Canadian federal government. The main political parties examined in this paper are the Liberal Party of Canada, the Conservative Party of Canada (and its predecessors, the Reform Party of Canada, the Progressive Con- servative Party of Canada, and the Canadian Reform Conservative Alliance), the Bloc Quebecois and the New Democratic Party.

Canada’s parliamentary system gives a unique status to the governing party, at present the Liberal party. The merging of executive and legislative functions results in a com- mingling of individuals from the governing party with the government itself. The most obvious example of the money flows involved is the funding of cabinet salaries and budgets to ministers who are at the same time members of the governing party.

Figure 2 looks specifically at the potential money flows associated with the sponsorship and advertising activities highlighted by the Auditor General’s 2003 report and investigated by various bodies, including the Public Works and Government Services department, the Standing Committee on Public Accounts, and the Gomery inquiry.4 The organizations and individuals identified in those reports are the basis for the calculation of financial flows in this paper.

It should be emphasized that there is nothing necessarily illegal or unethical about these financial flows.

4 See http://www.pwgsc.gc.ca/sponsorship/sponsorship-update-e.html for a listing and chronology of these investigations.

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However, allegations arising from the various sponsorship and adver- Figure 2: Sponsorship & Advertising tising investigations suggest that Financial Flows payments were made by Liberal party donors, both legally and on an illegal cash or in-kind basis, in order to benefit from favouritism in the awarding of government contracts. This linkage of party donation to contract awards can be termed outsider rent, the seeking of inappropriate payments by parties outside government. Such activities waste taxpayer funds and are a form of corruption.

Another potentially worrisome activity is the seeking of insider rent, government benefits that accrue to bureaucrats and politicians. In the case of sponsorship and advertising program allegations against various Public Works bureaucrats, this is another form of corruption.5

An accepted method of securing insider rent is to win election campaigns and form a government. This, of course, is the financial benefit of wielding power by the governing party, the ability to harness public resources to be used by cabinet to further its agenda. Complications arise, however, when there are informal arrangements for private benefits to accrue to people who fund the governing party’s effort to win and remain in office, thus allowing them to acquire insider rent. These arrangements are the heart of allegations by witnesses to the Gomery inquiry.

In summary, figures 1 and 2 show potential financial linkages between government, political parties, and the private sector. The linkages are complicated by two factors. First, there are personal relationships between party donors, party members, and decision makers, notably bureaucrats and cabinet ministers. The mixing of financial payments amongst these people introduces potentially adverse behaviours. Second, there are financial incentives to seek insider and outsider rent from government. This also cre- ates the potential for activities that are not in the interests of taxpayers.

5 Clemens et al. (2004) references a number of key papers in the Public Choice literature, notably Downs, 1957 and William and Simmons, 1994.

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The rest of this paper now turns to examining the people and organizations identified in the various sponsorship and advertising reports and tallies the resulting financial flows.

Methodology

The basic approach of the two Liberal party reports was to list all organizations and individuals identified in the Auditor General’s report “regardless of the context in which they were reported” (PricewaterhouseCoopers LLP, 2004). The Quebec Liberal report expanded an initial list from the Auditor General’s report by searching for related directors, shareholders, family members, and companies. The national Liberal report added four more names to this list, for a total of 410 organizations and individuals identified by the Liberal party.6 This paper uses that same methodology, applied to witnesses and identified organizations and individuals at the Gomery inquiry, to establish a fuller list of people linked with sponsorship and advertising activities.7

The next step was to add up the political donations to the Liberal party and all other major political parties from these people. This paper uses donation amounts in the Kroll Lindquist Avey report and data from Elections Canada for the additional organizations and individuals. Finally, the Liberal reports showed payments to their list of names. This was not done in this paper for the additional organizations and individuals, as the payments data were unavailable. This omission is one reason why the actual financial linkages are underestimated.

The Liberal party reports

Table 1 shows donations and payments for groupings of organizations and individuals from the two Liberal party reports over the eight-year period from 1996 to 2003.8 The

6 The report mentions 409 names in total but this is a miscount—there are actually 410 names. Thirty-four of the 410 names are government organizations. Only 37 companies were identified in the Auditor Gen- eral’s report, indicating that there are ten times that many related parties to these companies. The two Liberal reports did not develop a list of related parties for the 34 government organizations, a notable omission. 7 All articles published in the Toronto Star, The Globe and Mail, and the National Post related to the Gomery inquiry were also examined between September 2004 and June 2005 in a search for these organizations and individuals. 8 Kroll Lindquist Avey examined a ten-year period from 1994 to 2004. The Elections Canada database is also available for ten years from 1993 to 2003.

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Table 1: Identified Payments and Donations in Two Liberal Reports Payment Donation CPC BQ NDP Liberal Liberal BCP $4,694,628 $122,820 $1,000 $370 $250 Vickers & Benson $2,077,648 $102,475 $4,717 $0 $1,550 Communication & Stratégie $225,938 $354,050 $10,678 $0 $0 IDA-Everest $118,934 $173,710 $14,361 $195 $220 Groupaction-Gosselin $41,607 $202,500 $390 $1,145 $150 Allard-Johnson $30,158 $145,645 $250 $0 $0 Global Television $108,626 $36,275 $1,516 $0 $0 Palmer Jarvis $0 $125,490 $1,900 $0 $500 RCMP $0 $112,165 $0 $0 $0 Not identified $58,000 $51,107 $0 $0 $0 Lafleur $8,138 $97,025 $0 $120 $0 GGA $123 $83,320 $25,173 $104 $0 Privy Council Office $0 $44,400 $0 $0 $0 Tremblay-Guittet $17,799 $14,115 $0 $0 $0 Coffin $0 $30,100 $3,980 $0 $0 Information Essentielle $0 $24,000 $0 $0 $0 Government-related $15,841 $1,875 $1,010 $0 $0 organizations TVA/JPL $0 $13,735 $0 $630 $0 Gingko $0 $13,400 $873 $0 $0 BCE Media $0 $13,000 $942 $0 $0 Scott Thornley $5,709 $6,100 $0 $0 $0 Edmonton Drillers $0 $0 $0 $0 $0 Impact de Montréal $0 $0 $727 $0 $0 Multivet $0 $0 $0 $0 $0 Tribar $0 $0 $0 $0 $0 Total $7,403,149 $1,767,307 $67,515 $2,564 $2,670 Note: Liberal data are 1996-2003; other party data are 1993-2003. Source: Liberal Party of Canada, 2005; Elections Canada.

party opted not to look at data prior to 1996. The donations data from sponsorship and advertising people to other parties comes from the Elections Canada database.

The table shows total donations of $1.8 million and total payments of $7.4 million between the identified organizations and individuals and the Liberal party. A focus on the governing party is entirely justified, as sponsorship and advertising donations to all

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of the other parties combined are only 4 percent of the Liberal party total, as shown in the table.9

There are several items of note from table 1.

First, the Royal Canadian Mounted Police (RCMP) and the Privy Council Office (PCO) were charged $112,000 and $44,000, respectively, for seats accompanying the prime minister during the 2000 election campaign. These revenues were not recorded for the 1997 campaign, a notable omission.

It is an apparent conflict of interest for government agencies, especially those engaged in law enforcement, to pay a governing political party for services rendered during an election. This financial entanglement can impair perceptions of independence and due process that are essential to the proper functioning of those agencies.

Second, just over $239,000 in donations or payments had no supporting documentation, either a copy of a cheque, deposit slip, or invoice.10 This is a smaller example of a greater problem with the Liberal party reports: they are merely audits that do not examine unrecorded transactions. As noted below, $1.8 million in such unrecorded payments were published in the Kroll Lindquist Avey forensic accounting report.

Third, the Liberal party paid $5.9 million to two firms, Vickers & Benson and BCP, for media expenses during the 1997 and 2000 elections. These two companies were the only ones identified as having provided election services (aside from a $108,626 media buy from Global Television in 2000) and BCP “was responsible for co-ordinating the Party’s full media efforts” (PricewaterhouseCoopers LLP, 2004) in Quebec during elections. No tendering process was used for this work and no contracts were awarded setting out terms and conditions, suggesting that favouritism was involved.

The payments to these two firms that were recorded in the Liberal reports were from private Liberal party funds and not directly from public monies. However, it is also known that as the governing party, public funds were directed to these firms through large multi-million dollar government contracts that they signed. Vickers & Benson and BCP

9 The Liberal party donations are understated because the party reports ignored the period from 1993 to 1996. Donations by sponsorship and advertising names to other parties are very likely overstated, as we were only able to do a name search (with no associated address or other identifier) to obtain the data. As an example of this, table 3 shows that an individual (or individuals) named Paul Martin gave donations to all of the major parties. It is extremely unlikely that the current prime minister is the same person in all four cases, thus resulting in overestimation of donations to other parties. 10 These undocumented donations were reported in the two Liberal party reports.

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were the number one and two ranked advertising firms for the federal government between 1994 and 2003, with contracts totalling $277 million and $160 million, respectively (Kroll Lindquist Avey Report, p. 20). The appearance of political favouritism is reinforced by the donations made by these firms and their principals to the Liberal party (shown in tables 1, 2 and 3).

Table 2: Identified Donations in Kroll Lindquist Avey Report Liberal CPC BQ NDP 9004-8612 Québec Inc. (Comsar)* $812,065 $0 $0 $0 PluriDesign Canada* $430,370 $0 $0 $0 Groupe Everest $194,832 $14,361 $195 $220 Groupaction $170,854 $390 $1,145 $150 Investissement Alain Renaud* $153,481 $0 $0 $0 Vickers & Benson $151,659 $4,717 $0 $1,550 BCP $97,720 $1,000 $370 $250 John Welch* $84,500 $0 $0 $0 Commando Communication* $70,000 $0 $0 $0 PluriDesign Canada Inc. $53,190 $0 $0 $0 Groupe Everest* $50,000 $0 $0 $0 Le Groupe Gosselin et Associés* $42,856 $0 $0 $0 Lafleur $42,213 $0 $120 $0 Productions Caméo* $39,850 $0 $0 $0 Coffin $29,300 $3,980 $0 $0 Richard Boudreault via Harel Drouin & $24,975 $0 $0 $0 Associés* Expour/Groupe Polygone $23,361 $0 $0 $0 Gestions Richard B. Boudreault* $14,790 $0 $0 $0 Club de Golf de Verchères* $14,100 $0 $0 $0 Restaurant La Tarentella* $8,282 $0 $0 $0 Georges Farrah* $6,000 $0 $0 $0 Gosselin $5,407 $0 $0 $0 Au Printemps Gourmet* $5,168 $0 $0 $0 Gabriel (“Gaby”) Chrétien* $4,000 $0 $0 $0 Business fundraisers attended by ministers* $3,150 $0 $0 $0 Cash payments unknown* $0 $0 $0 $0 Total $2,532,123 $24,447 $1,830 $2,170 Note 1: Data are 1993-2003. Note 2: Indirect payments marked * are from Jean Brault’s testimony. Source: Kroll Lindquist Avey, 2005; Elections Canada.

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There are, therefore, multiple financial and non-financial relationships between these two firms and the Liberal party. The firms and individuals at the firms donated to the Liberal party. The Liberal party awarded them untendered contacts to provide election services. The Liberal government also awarded them large sponsorship and advertising contracts. In sum, the firms provided donations and election services to the Liberal party, and the Liberal party and government awarded private and public contracts to these people.

Finally, it is important to note that donations to candidates, MPs, or local ridings “for which a receipt is not issued” are not included in the Liberal party reports “as such amounts do not form part of the books or records of the Party” (PricewaterhouseCoopers LLP, 2004). In other words: no receipt, no record. The two Liberal party reports tally only official receipted donations that for Quebec and Ontario donors (the preponderance of identified organizations and individuals in sponsorship and advertising activities) can only be issued by the national organization. Another limi- tation is that there was no assessment done in the reports of payments by the Liberal party to identified individuals; rather, only payments to identified companies were shown.

The Kroll Lindquist Avey report

Table 2 shows donations to the Liberal party and other political parties from organizations and individuals found in the Kroll Lindquist Avey report. These forensic auditors found $768,000 in direct donations and $1.8 million in indirect contributions, the latter as testified to by Jean Brault.11 Again, a focus on the governing party is reasonable, as donations by people to all other parties combined is only 1 percent of the alleged Liberal party amount as shown in the table.12

It is difficult to total up the number of organizations and individuals in the Kroll Lindquist Avey report, as there is no convenient listing and the full report (with 11 appendices and 27 schedules) is as yet not available on a web site.

11 In regard to this $1.8 million in non-receipted alleged payments, Judge Gomery is quoted as saying that on “quite a lot of the evidence, I’m not going to be able to come to any conclusion whatsoever” (Cernetig, 2005). This is not surprising, as noted above, because non-receipted donations to candidates, MPs, or local ridings are not recorded in the books of the Liberal party. Also, financial records for many organizations and individuals were not made available to the inquiry. 12 Footnote 10 explains why this is an overstatement of donations to other political parties.

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Table 3: Identified Donations from Gomery Inquiry Testimony

Liberal CPC BQ NDP

Wallding International Inc. $36,457 $0 $0 $0 Commando Communication $23,425 $0 $0 $0 Marketing Inc.* Jean Chrétien $16,830 $0 $500 $0 Marc Lefrançois $12,105 $0 $0 $0 Michel Béliveau $10,975 $0 $150 $0 Paul Martin $9,677 $110 $1,145 $314 Jean Pelletier $7,660 $150 $0 $0 Denis Coderre $7,624 $0 $0 $0 Michel Vennat $7,520 $0 $0 $0 Diane Marleau $7,290 $0 $0 $0 Jacques Roy $6,736 $110 $0 $0 Michel Joncas $5,898 $0 $0 $0 Martin Cauchon $5,373 $0 $0 $0 Don Boudria $5,320 $0 $0 $0 John Welch $5,277 $0 $0 $0 Michel Chrétien $5,112 $0 $0 $0 Pierre Lesieur $5,035 $0 $0 $0 Guy Bisson $4,292 $0 $0 $0 Alfonso Gagliano $4,247 $0 $0 $0 Jacques Saada $3,842 $0 $0 $0 Benoît Corbeil $3,687 $0 $750 $0 André Ouellet $3,117 $0 $0 $0 Jean-Marc Bard $2,969 $0 $0 $0 Jacques Paradis $2,884 $0 $130 $0 Alain Renaud $2,863 $0 $0 $0 Luc Lemay $2,861 $0 $0 $0 Marc-Yvan Côté $2,593 $0 $0 $0 Pierre Tremblay $2,500 $0 $3,058 $0 Georges Farrah $2,079 $0 $0 $0 Bernard Thiboutot $2,060 $0 $0 $0 Giuseppe Morselli $2,000 $0 $0 $0 David Dingwall $1,677 $0 $0 $0 Gabriel Chrétien $1,442 $0 $0 $0 Sergio Marchi $1,433 $0 $0 $0 Irène Marcheterre $1,418 $0 $0 $0

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Table 3: Identified Donations from Gomery Inquiry Testimony

Liberal CPC BQ NDP

Serge Gosselin $1,233 $254 $0 $0 Françoise Haxaire-Patry $1,075 $0 $0 $0 Claude Lemieux $1,024 $0 $150 $0 Jean Carle $1,000 $0 $0 $0 Franco Iacono $837 $0 $0 $0 Daniel Dezainde $689 $0 $0 $0 Winnifred Cumming $683 $0 $0 $0 Michel Monette $670 $0 $0 $0 Productions Cameo Inc. $580 $0 $0 $0 Pierre Michaud $483 $0 $235 $0 Bruno Lortie $450 $0 $0 $0 Luc Desbiens $403 $0 $0 $0 Antonio Mignacca $400 $0 $0 $0 Gaitano Manganiello $387 $0 $0 $0 Jean Brisebois $200 $0 $0 $0 François Beaudoin $0 $0 $1,080 $0 Odilon Emond $0 $0 $0 $0 Normand Gravel $0 $0 $0 $0 Michel Octeau $0 $0 $0 $0 Mario Parent $0 $0 $200 $0 Louis Pichette $0 $3,056 $0 $0 Isabelle Roy $0 $0 $0 $0 Robert Guy Scully $0 $0 $0 $0 Phillippe Zrihen $0 $0 $0 $0 Total $236,393 $3,680 $7,398 $314 Note 1: Data are 1993-2003. Note 2: Payment marked * used in place of $20,000 estimate from Jean Brault’s testimony. Source: Elections Canada.

Nevertheless, 99 additional organizations and individuals were added to the Liberal reports list of 410 using the main Kroll Lindquist Avey document, including two entire groups affiliated with Jacques Corriveau and Luc Lemay. This added $1.9 million in donations to the $1.8 million found in the two Liberal party reports. These additional names and donation amounts were not identified at all in the two Liberal party reports. Many of the additional people identified by Kroll Lindquist Avey have also been highlighted in the media as political operatives of the Liberal party.

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Gomery inquiry testimony

Table 3 shows a list of 56 additional organizations and individuals compiled for this paper from media coverage of witness testimony. The donations of these individuals were not identified in either the Liberal party reports or the Kroll Lindquist Avey report. Their donation amounts were found in the Elections Canada party contributions database. Note from the table that donations of only 3 percent of the Liberal party total go to all other political parties combined.13

This brings the total number of organizations and individuals to at least 565 (see Appen- dix A for a full alphabetical listing of the identified organizations and individuals) and adds another $236,000 in donations to the Liberal party, bringing the total to $3.9 million. As noted above, the Liberal party made at least $7.4 million in payments to some of these people. A trust fund of $750,000 set up by the Liberal party to “repay any funds received inappropriately” is considerably smaller than these sums (Brydon, 2005).

These numbers must be treated as minimum estimates, as payments to individuals were ignored in the Liberal party reports. The chartered accountants who wrote the Liberal party reports and Kroll Lindquist Avey also provide caveats that not all relevant parties have been identified. Finally, there was no attempt to establish related directors, shareholders, family members, and companies for the additional individuals identified in this paper, nor was that done for any government organizations in any of the reports.

Conclusions and recommendations

Figure 3 shows the distribution of donations from the 565 organizations and individuals to the main political parties. Of the $4 million in total donations to all parties, at least 98 percent went to the Liberal party. There seems no doubt that people implicated in the sponsorship and advertising programs focused on the governing Liberal party when making their party contributions.

Figure 4 brings the preceding information together to estimate the financial flows associated with the sponsorship and advertising programs of the federal government.

As discussed above, it is alleged that $3.9 million was donated to the Liberal party and the party paid $7.4 million to identified companies and individuals. By comparison, the amount of insider rent from the federal government under the control of individuals in

13 Footnote 10 explains why this is an overstatement of donations to other political parties.

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the Liberal party, through their Figure 3: Donations to Political roles as cabinet ministers, is 30 Parties—Sponsorship & Advertising times larger than these sums. The Total of $4 Million $120 million estimate comes from spending on the Office of the Prime Minister, other cabinet Liberal Party offices, and the Privy Council 98% Office from fiscal years 1993-94 to 2003-04 (data from the government’s main spending estimates are at http://www.tbs-sct.gc.ca/est- pre/estime.asp).

The amount of insider rent is Other Parties again dwarfed by 10 times by the 2% amount of outsider rent from the federal government to people in the private sector. The $1.2 billion total is the value of sponsorship and advertising contracts between 1994 and 2003 that involve identified organizations and individuals. The advertising portion represented 77 percent of all federal government advertising over those 10 years, thus showing how pervasive were the relationships between government outsiders and insiders.

The Kroll Lindquist Avey report noted that typical commissions on advertising contracts ran to 15 percent, while the profits and payments in salaries and bonuses for sponsorship contracts were almost 20 percent of revenues (author’s calculations). This range produces an estimated private benefit of at least $190 million from the federal government to the organi- Figure 4: Estimated Sponsorship & zations and individuals identified Advertising Financial Flows in the sponsorship and advertising reports, almost 50 times larger than their $3.9 million collective donation to the Liberal party.

Of course, the table shows that there are no offsetting financial flows from the Liberal party or the private sector to the government, aside from the normal tax and transfer flows applicable to all Canadians.

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As noted above, these flows are not necessarily illegal or unethical. However, a set of financial incentives was established that created the potential for misdirected and wasted public funds. It is up to Justice Gomery and a number of criminal investigations to determine the exact involvement of the people identified in these sponsorship and advertising programs and to make appropriate policy recommendations.

For the purposes of this paper, the financial relationships between the federal government, political parties, and private interests have been established for people associated with the sponsorship and advertising programs. The numbers of people and amounts of money involved in the Gomery inquiry are larger than previously known. Problems with federal government sponsorship and advertising programs can be understood using an economic theory of incentives and institutional structure. The financial incentive of $120 million in insider rent appears to have been sufficient in part to motivate $5.9 million in untendered election services contracts, while $190 million in potential outsider rent attracted some portion of $3.9 million in political donations to the Liberal party.

As for recommendations to prevent a re-occurrence of these problems in the future, there are a number of changes that would improve financial reporting and monitoring. However, the existence of economic rent means that there will always be powerful incentives for rent-seeking behaviour. The preceding Fraser Institute publication (Clem- ens et al., 2004) found 120 examples of federal government failure over a seven-year period. The average of over one significant failure every month underscores the difficulty of eliminating waste. Nevertheless, there are a number of options to reduce rent-seeking activities.

One step is to improve financial disclosure. A quarterly regime of financial reports by department, on a standardized accounting basis, and to the detailed level required of public companies, would enable MPs and citizens to better monitor government activities. Independent tendering of government contracts, through an arms-length organization and with a transparent decision-making process, would also reduce the potential for favouritism. Publication of contract expectations and follow-up assessments of contract performance would introduce incentives for more effective service delivery.

Fraser Institute authors have previously recommended increasing resources to the Audi- tor General and broadening the scope of audits undertaken to include Crown Corpora- tions and government foundations. Mandatory follow-up audits to determine compliance and the creation of an oversight parliamentary committee are other recommended strategies (Clemens et al., 2004).

Governance changes that create real agency independence (for the Auditor General, Eth- ics Counsellor, Treasury Board auditing functions, and others agencies) might see the replacement of parliamentary or executive oversight, and all the politicization that

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involves, with directly elected officials and a more formalized relationship with the public.14 The issue of who oversees the overseers can never be satisfactorily resolved, but the role of politics in that process can be altered in a way that reduces inappropriate actions.

Finally, it must be recognized that waste in government is often a function of publicly set standards of behaviour. The electorate, through polls that reveal attitudes and by voting in elections, ultimately sets the parameters around acceptable behaviour. Pervasive and sustained misallocation of taxpayer funds is more likely to reoccur if such activities are socially tolerated. There is no reform of government practices that can create a culture that does not tolerate government waste. That is something that must be decided and declared by Canadians at large.

14 I am indebted to Brett Skinner for making the suggestion to directly elect the Auditor General.

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Appendix A: Identified Organizations and Individuals Number Name Group 1 140638 Canada Inc. IDA/Everest 2 157146 Canada Inc. Lafleur 3 163368 Canada Inc. Communication & Stratégie 4 163926 Canada Inc. TVA/JPL 5 166059 Canada Inc. IDA/Everest 6 176698 Canada Inc. IDA/Everest 7 2142376 Canada Inc. Vickers & Benson 8 2373556 Canada Inc. BCE Media 9 2428-6932 Québec Inc. IDA/Everest 10 2501775 Canada Inc. IDA/Everest 11 2537-3810 Québec Inc. IDA/Everest 12 2547-3810 Québec Inc. IDA/Everest 13 2636-7300 Quebec Inc. BCP 14 2794101 Canada Inc. Coffin 15 2846651 Canada Inc. Global Television 16 2862611 Canada Inc. Impact de Montréal 17 2879034 Canada Inc. Communication & Stratégie 18 2995841 Canada Inc. Communication & Stratégie 19 2KL Etcetera Communications Inc. Lafleur 20 3100-0516 Québec Inc. BCP 21 3176681 Canada Inc. Communication & Stratégie 22 3289796 Canada Inc. IDA/Everest 23 3364577 Canada Inc. Groupaction/Gosselin 24 3397823 Canada Inc. Media/IDA Vision 25 3428265 Canada Inc. Groupe Everest/Paul Martel/Mediavision 26 3440222 Canada Inc. 27 3451186 Canada Inc. BCP 28 3488331 Canada Inc. Groupaction/Gosselin 29 3519511 Canada Inc. Communication & Stratégie 30 3519520 Canada Inc. Communication & Stratégie 31 3522610 Canada Inc. Groupaction/Gosselin 32 3608557 Canada Inc. TVA/JPL 33 3698866 Canada Inc. IDA/Everest 34 3703096 Canada Inc. 35 3722449 Canada Limited Global Television 36 3784894 Canada Inc. Communication & Stratégie 37 3985890 Canada Inc. TVA/JPL 38 6015328 Canada Inc. Lafleur

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Appendix A: Identified Organizations and Individuals Number Name Group 39 6048536 Canada Inc. IDA/Everest 40 6080081 Canada Inc. Multivet 41 790382 Alberta Ltd. Edmonton Drillers 42 9004-8612 Québec Inc. (Comsar) 43 9006-9568 Québec Inc. BCP 44 9015-5540 Québec Inc. BCP 45 9025-9722 Québec Inc. BCP 46 9026-3906 Québec Inc. BCP 47 9039-2788 Québec Inc. Groupaction/Gosselin 48 9039-4073 Québec Inc. BCP 49 9039-7902 Québec Inc. BCP 50 9039-7910 Québec Inc. BCP 51 9042-9390 Quebec Inc. BCP 52 9049-8130 Québec Inc. Communication & Stratégie 53 9050-4929 Québec Inc. IDA/Everest 54 9086-8225 Québec Inc. IDA/Everest 55 9086-8969 Québec Inc. IDA/Everest 56 9125-6040 Québec Inc. BCP 57 9134-0125 Québec Inc. BCP 58 A.M.A.N. Communication Inc. BCP 59 Acart Communications 60 Advertising and Public Opinion Research Government Organization Sector (APORS) 61 Agriculture and Agi-Food Canada Government Organization 62 Alexsim Management Inc. Groupaction/Gosselin 63 Allard et Associes 64 Allard Johnson Communications Inc. Allard-Johnson 65 Allard-Johnson Allard-Johnson 66 Alleluia Design Inc. Groupaction/Gosselin 67 Anderson, S. C. Vickers & Benson 68 Archambault, Joane Groupaction/Gosselin 69 Armanda 70 Arscott, A. Glenn Vickers & Benson 71 Asper, Leonard Global Television 72 Attractions Canada Government Organization 73 Au Printemps Gourmet 74 Bard, Jean-Marc 75 BCE Media BCE Media

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Appendix A: Identified Organizations and Individuals Number Name Group 76 BCE Media Inc. BCE Media 77 BCP BCP 78 BCP Canada Inc. BCP 79 BCP Chine Conseil en Marketing et BCP Communication Inc. 80 BCP Consultants Inc. BCP 81 BCP Holding Inc. BCP 82 BCP Ltée BCP 83 BCP Mondial Inc./BCP Worldwide Inc. BCP 84 BCP Promo Inc. BCP 85 BCP Stratégies Inc. BCP 86 BCP Worldwide Inc. BCP 87 Beauchemin, Elise BCP 88 Beaudoin, François 89 Belisle, Jean-Bernard IDA/Everest 90 Béliveau, Michel 91 Bertram, Ronald Vickers & Benson 92 Bertrand, Mario TVA/JPL 93 Bisson, Guy 94 Boivin, Valier BCP 95 Bouchard, Gaetan Allard-Johnson 96 Boudreault, Richard via Harel Drouin & Associés 97 Boudria, Don 98 Boulay, Claude IDA/Everest 99 Bowen & Binstock 100 Bowen, Walter M. Vickers & Benson 101 Bradstock, John Palmer Jarvis 102 Brault, Jean Groupaction/Gosselin 103 Bremner , William B. Vickers & Benson 104 Briere, Raynald TVA/JPL 105 Brisebois, Jean 106 Bristol Group 107 Brott, Richard Allard-Johnson 108 Buck, Erwin W. Allard-Johnson 109 Buron, Paul TVA/JPL 110 Business Development Bank of Canada Government Organization (BDC)

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Appendix A: Identified Organizations and Individuals Number Name Group 111 C. & S.P.B. Communication & Stratégie Inc. Communication & Stratégie 112 Calimero Partenariat 113 Campbell & Partners Communications Inc. Allard-Johnson 114 Campbell, Barry Allard-Johnson 115 Canada Customs and Revenue Agency Government Organization (CCRA) 116 Canada Information Office (CIO) Government Organization 117 Canada Lands Company Limited/Parc Government Organization Downsview Park Inc. 118 Canada Mortgage and Housing Corporation Government Organization (CMHC) 119 Canada Post Corporation (CPC) Government Organization 120 Canadian Firearms Centre 121 Canadian Tourism Commission (CTC) Government Organization 122 Canwest Global Broadcasting Canada Ltd Global Television 123 Carder, Paul C. Vickers & Benson 124 Carle, Jean 125 Caty, Linda BCE Media 126 Cauchon, Martin 127 Centre de Placement de Professionnels en Communication Inc. 128 Chanistel Inc. BCP 129 Charel, Gestion BCP 130 Charest, Gilles BCP 131 Charron, Claude TVA/JPL 132 Chiappetta, John Tribar 133 China Marketing and Communication BCP Counselling Inc. 134 Choquette, Charles IDA/Everest 135 Chrétien, Gabriel 136 Chrétien, Jean 137 Chrétien, Michel 138 Clark, Peter Gingko 139 Cloutier, Alain BCP 140 Club de Golf de Verchères 141 Coderre, Denis 142 Coffin, Charles Coffin 143 Coffin, Paul Coffin 144 Commando Communication Marketing Inc.

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Appendix A: Identified Organizations and Individuals Number Name Group 145 Communication Canada Government Organization 146 Communication Coffin Coffin 147 Communication Jean Lafleur International Lafleur Inc. 148 Communication Procurement Directorate Government Organization 149 Communications 2KL Etcetera Inc. Lafleur 150 Communications Art Tellier Inc. 151 Communications Co-ordination Services Government Organization Branch (CCSB) 152 Communications Dobrimar Inc. Information Essentielle 153 Compass Communications 154 Consortium Lafleur 155 Consultant Claude Boulay Ltée IDA/Everest 156 Continuum Database Marketing 2004 Inc. Communication & Stratégie 157 Continuum Database Marketing Inc. Communication & Stratégie 158 Corbeil, Benoît 159 Corriveau, Jacques PluriDesign 160 Cossette Communication 161 Côté, Marc-Yvan 162 Crawford, Thomas R. Vickers & Benson 163 Création La Pralière Canada Ltée BCP 164 Cumming, Winnifred 165 Curtis, Donald J. Vickers & Benson 166 Davidson, Pierre 167 Davis, Peter IDA/Everest 168 De Lorimier, Sylvie Information Essentielle 169 Défi Design Groupaction/Gosselin 170 Delta Media 171 Denes, Peter BCP 172 Department of Canadian Heritage Government Organization 173 Department of Finance Government Organization 174 Department of Justice Government Organization 175 Desbiens, Luc 176 Design Digital Emd 2 Groupaction/Gosselin 177 Desjardins, Claude BCP 178 Desjeans, Roger Groupaction/Gosselin 179 Deslauriers, Diane Oro Communication 180 Dezainde, Daniel

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Appendix A: Identified Organizations and Individuals Number Name Group 181 Dezert Publicity Inc. Lafleur 182 Dingwall, David 183 DLC Communications Inc. 184 Draftmondial Québec Inc. / Draftworldwide IDA/Everest Québec Inc. 185 Draftworld Québec Inc. IDA/Everest 186 Draftworldwide Canada Inc. IDA/Everest 187 Draftworldwide Montreal Inc./Draftmondial IDA/Everest Montreal Inc. 188 Dumas Walker Groupaction/Gosselin 189 Dumas, Lucie Groupaction/Gosselin 190 Edmonton Drillers (Club de soccer) Edmonton Drillers 191 Edmonton Drillers Corp. Edmonton Drillers 192 Edmonton Drillers Limited Partnership Edmonton Drillers 193 Edmonton Drillers Soccer Club Edmonton Drillers 194 Emd 2 Design Digital Groupaction/Gosselin 195 Emond, Odilon 196 Ensemble Consortium Groupaction/Vickers/Compass/Focus/Coffin 197 Etienne, Jean-Michel BCP 198 Everest Commandites (G.E.C.M.) Inc. IDA/Everest 199 Everest Estrie Publicité (G.E.C.M.) Inc. IDA/Everest 200 Everest Promotion Inc. IDA/Everest 201 Everest Publicite (G.E.C.M.) Inc. IDA/Everest 202 Everest Publicite Promotion Inc. IDA/Everest 203 Everest Publicite Promotions (G.E.C.M.) Inc. IDA/Everest 204 Everest Quebec (G.E.C.M.) Inc. IDA/Everest 205 Everest Relations Publiques (G.E.C.M.) Inc. IDA/Everest 206 Everest Relations Publiques Inc. IDA/Everest 207 Everest Versant Ouest Inc. IDA/Everest 208 Everest-Estrie IDA/Everest 209 Expour/Groupe Polygone 210 Fagnan, Nathalie BCP 211 Farrah, Georges 212 Federal Office for Regional Development Government Organization (Quebec) 213 Fiducie CBI IDA/Everest 214 Fiducie Toupin IDA/Everest 215 Fisher, David Henry IDA/Everest

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Appendix A: Identified Organizations and Individuals Number Name Group 216 Fisher, Richard H. IDA/Everest 217 Florence, David IDA/Everest 218 Focus Stratégies & Communications Inc. Palmer Jarvis 219 Foreign Affairs & International Trade Canada Government Organization 220 Fortin, Sylvain Multivet 221 Freeman, Rodgers & Battaglia 222 Fyshe, Michael A. Vickers & Benson 223 Gagliano, Alfonso 224 Gagnon, Jean-René GGA 225 Genesis Media 226 Gervais Gagnon Covington & Associés Inc. GGA 227 Gervais, Gagnon Associés Communications GGA 228 Gervais, Pierre Vickers & Benson 229 Gervais, Richard GGA 230 Gestion Antarctique Inc. IDA/Everest 231 Gestion Isami Inc. Groupaction/Gosselin 232 Gestion Lamier Inc. Lafleur 233 Gestion Marc Roberge Inc. Lafleur 234 Gestion Operation Tibet Inc. IDA/Everest 235 Gestion Versus Inc. BCP 236 Gestions Richard B. Boudreault 237 GGA Communications Public and GGA Governmental Relations Inc. 238 GGA Communications Relations publiques GGA et gouvernementales 239 Gingko Gingko 240 Global Global Television 241 Global Canadian Program Investment Fund Global Television Corporation 242 Global Television Global Television 243 Global Television Centre Ltd Global Television 244 Global Television News Inc. Global Television 245 Goodhue et associés Design Communication BCP 246 Goodhue, Luc BCP 247 Goodman Communications Inc. 248 Gosselin Communications Groupaction/Gosselin 249 Gosselin Communications Strategiques Inc. Groupaction/Gosselin

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Appendix A: Identified Organizations and Individuals Number Name Group 250 Gosselin et Associés Communications Groupaction/Gosselin Stratégiques Inc. 251 Gosselin Relations Publiques Inc. Groupaction/Gosselin 252 Gosselin Relations Publiques Inc. / Gosselin Groupaction/Gosselin Public Relations Inc. 253 Gosselin, Andrée Groupaction/Gosselin 254 Gosselin, Gilles-André Groupaction/Gosselin 255 Gosselin, Nicolas 256 Gosselin, Serge 257 Gougoux, Yves BCP 258 Goular Inc. BCP 259 Grafix Studio 260 Gravel, Normand 261 Gravel, Stéphane Multivet 262 Greenburg, Stephen TVA/JPL 263 Groupaction Groupaction/Gosselin 264 Groupaction Communication Inc. Groupaction/Gosselin 265 Groupaction Gosselin Communications Groupaction/Gosselin Strategiques Inc. 266 Groupaction Interactif Inc. Groupaction/Gosselin 267 Groupaction Marketing Inc. Groupaction/Gosselin 268 Groupaction Publications Ltée Groupaction/Gosselin 269 Groupaction/Gosselin Groupaction/Gosselin 270 Groupaxion Nouveaux Medias Inc. / Groupaction/Gosselin Groupaxion New Medias 271 Groupe Cible (B.A.) Inc. Communication & Stratégie 272 Groupe Everest C. M.-P.C.R. Inc. IDA/Everest 273 Groupe Everest Inc. IDA/Everest 274 Groupe Gosselin et Associes Groupaction/Gosselin 275 Groupe Polygone and Expour 276 Groupe TVA Inc. / Group TVA Inc. TVA/JPL 277 Guertin, Stéphane Lafleur 278 Guilbault, Pierre TVA/JPL 279 Guite, Joseph Charles APORS/CCSB 280 Guittet, Manuel Tremblay-Guittet 281 Haxaire-Patry, Françoise 282 Hayter, John 283 Health Canada Government Organization

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Appendix A: Identified Organizations and Individuals Number Name Group 284 Heritage Canada Government Organization 285 House of Commons Government Organization 286 Human Resources Development Canada Government Organization (HRDC) 287 Iacono, Franco 288 IDM Communications Limited Vickers & Benson 289 Impact de Montréal Impact de Montréal 290 Impact Splash 291 Impression Arts Ltd. 292 Imprimerie Production 293 Industry Canada Government Organization 294 Interpoles 295 Investissement Alain Renaud 296 Itakura, Alan Vickers & Benson 297 Jacques Corriveau Designer Inc. 298 Jean Lafleur Communication Marketing Inc. Lafleur 299 Jodoin, Yves BCP 300 Johnson, Terry M. Allard-Johnson 301 Joli-Coeur, Claude TVA/JPL 302 Joncas, Michel 303 Journal de Montreal 304 Journal de Quebec 305 JPL TVA/JPL 306 JPL Production II Inc. TVA/JPL 307 JPL Production Inc. TVA/JPL 308 Julien, Annie BCP 309 Koskie, Michael H. Vickers & Benson 310 Kruk, Yuri Yuri Kruk Communications Design 311 La Fabrique de la Paroisse St-Adolphe 312 Labbe, Rejean BCP 313 Labelle, Philippe TVA/JPL 314 Lacroix, Claude IDA/Everest 315 Lafleur Lafleur 316 Lafleur Communication Marketing Inc. Lafleur 317 Lafleur, Dyane Lafleur 318 Lafleur, Eric Lafleur 319 Lafleur, Jean Lafleur

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Appendix A: Identified Organizations and Individuals Number Name Group 320 Lafleur, Julie Lafleur 321 Lafleur, Simon Lafleur 322 Lalonde, Jacques BCP 323 Lambert Multimedia Inc. 324 Lampron, Pierre TVA/JPL 325 Lawrie, Robert BCP 326 LBJ.FRB Communications Inc. 327 Le Groupe BCP Ltée BCP 328 Le Réseau de Télévision TVA Inc. / TVA TVA/JPL Television Network Inc. 329 Lefrançois, Marc 330 Léger, Claude Communication & Stratégie 331 Lemay, Luc 332 Lemieux, Claude 333 Lemoine, Pierre C. Information Essentielle 334 Leroux, Monique TVA/JPL 335 Les Editions Satellite Inc./Satellite Lafleur Publishing Inc. 336 Les Editions TVA Inc./TVA Book P TVA/JPL ublishers Inc. 337 Les Promotions Propulsion Inc. BCP 338 Les Publications TVA Inc./TVA TVA/JPL Publishing Inc. 339 Lesieur, Pierre 340 Leveille, Jean Vickers & Benson 341 Levesque, Daniel DLC Communications 342 Lévy, Maurice BCP 343 L’Information Essentielle Inc. Information Essentielle 344 Lithospec Inc. BCP 345 Lortie, Bruno 346 Lyon, Daniel TVA/JPL 347 Maillard, Eric Groupaction/Gosselin 348 Manganiello, Gaitano 349 Manifest Communications 350 Marcheterre, Irène 351 Marchi, Sergio 352 Marleau, Diane Minister of Public Works and Government Services 353 Martin Publicity Inc. Communication & Stratégie

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Appendix A: Identified Organizations and Individuals Number Name Group 354 Martin, Paul 355 Maschmeyer, Bruce Tribar 356 Materiaux Pont Masson 357 McKim Communications 358 Media - I.D.A. Vision Inc. IDA/Everest 359 Media Vision Inc. IDA/Everest 360 Media Vision W.W.P. Inc. IDA/Everest 361 Media/I.D.A. Vision IDA/Everest 362 Médiabec Inc. BCP 363 Médiavision W.W.P. Inc. IDA/Everest 364 Médiavision WWP, S.E.C. IDA/Everest 365 Metcalfe, Herbert Communication & Stratégie 366 Michaud, Pierre 367 Mignacca, Antonio 368 Millenium Bureau of Canada Government Organization 369 Miller, Donald Palmer Jarvis 370 Mirabau Serigraphie 371 MMS Canada Holdings Inc. BCP 372 Mondoux, Gaetan Exposition CP 373 Monette, Michel 374 Monk, Robert BCP 375 Montreal Canadians 376 Montreal Expos 377 Morris, Graham B. Vickers & Benson 378 Morselli, Giuseppe 379 Motion International Inc. TVA/JPL 380 MP Photo Reproduction 381 Multivet Multivet 382 Multivet Media Inc. Multivet 383 Multi-Vet Vidéo Inc. Multivet 384 Murphy, D W Vickers & Benson 385 Musacchio, Vincent Impact de Montréal 386 Myer, David Former Director General of CCSB 387 Natcom Publicite 388 National Arts Centre Corporation Government Organization 389 National Capital Commission Government Organization 390 National Defence Government Organization

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Appendix A: Identified Organizations and Individuals Number Name Group 391 Natural Resources Canada Government Organization 392 Neveu, Jean TVA/JPL 393 NEWBO VB Inc. Vickers & Benson 394 NMC Neighbourhood Marketing Canada Inc. Communication & Stratégie 395 NMC Sélection du Quartier Canada Inc. Communication & Stratégie 396 Noble, Gerald Global Television 397 Octeau, Michel 398 Old Port of Montréal Corporation Inc. Government Organization 399 O’Malley, Terrence J. Vickers & Benson 400 Option Canada 401 Oro Communications 402 OSL Marketing Communications Inc. Communication & Stratégie 403 OSL-Martin Inc. Communication & Stratégie 404 Otis, Robert Communication & Stratégie 405 Otis, Sauter & Associés Inc. Communication & Stratégie 406 Otis, Sauter, Léger Carr Inc. Communication & Stratégie 407 Ouellet, André 408 PacCanUS Inc. 409 Palmer Jarvis Palmer Jarvis 410 Palmer Jarvis (Canada) Inc. Palmer Jarvis 411 Palmer Jarvis DDB Inc. Palmer Jarvis 412 Palmer, Frank William Palmer Jarvis 413 Paquette, Serge Communication & Stratégie 414 Paradis, Jacques 415 Parent, Mario 416 Parisella, John BCP 417 Parizeau, Jean BCP 418 Paul Martel Inc. IDA/Everest 419 Pearson, Richard Groupaction/Gosselin 420 Pelletier, Jean 421 Périscope Interactif 2004 Inc. Communication & Stratégie 422 Périscope Interactif Inc. Communication & Stratégie 423 PFC Soccer Inc. Edmonton Drillers 424 Picard, Andre TVA/JPL 425 Pichette, Louis 426 Pickford, Barry W. BCE Media 427 PluriDesign Canada Inc.

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Appendix A: Identified Organizations and Individuals Number Name Group 428 Poirier Communications Ltd 429 Portage Promotion 430 Poulin, Gilles TVA/JPL 431 Privy Council Office (PCO) Government Organization 432 Productions Caméo Inc. 433 Promotions Market Place Inc. BCP 434 Proux, Genevieve 435 Public Works and Government Services Government Organization Canada (PWGSC) 436 Publicis Canada Inc. BCP 437 Publicis Consultants Inc. BCP 438 Publicis Dialogue Inc. BCP 439 Publicis Groupe Holdings B.V. BCP 440 Publicis Inc. BCP 441 Publicis Montréal Inc. BCP 442 Publicis Réalisations Inc. BCP 443 Publicis Toronto Inc. BCP 444 Publicis. SMW Inc. BCP 445 Publicis.BCP Inc. BCP 446 Publicis.BCP Montréal Inc. BCP 447 Publicis.BCP Promotion Inc. BCP 448 Publicis.BCP Réalisations Inc. BCP 449 Publicis-BCP Art Ad-vice Inc. BCP 450 Publicis-BCP Toronto Inc. BCP 451 Publicité Dézert Inc./Dezert Publicity Inc. Lafleur 452 Publicité Intercepte Inc. BCP 453 Publicité Martin Inc. Communication & Stratégie 454 Publicité Vickers & Benson Ltee Vickers & Benson 455 Publistudio Communication Inc. Communication & Stratégie 456 Quad 457 Quail, Ranald PWGSC 458 Radio Capsules 459 Rahill, Linda IDA/Everest 460 Rancourt, Serge BCP 461 Réalisations 2 de go Inc. BCP 462 Réalisations BCP Inc. BCP 463 Réalisations Inc. BCP

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Appendix A: Identified Organizations and Individuals Number Name Group 464 Rebelles.com Inc. Groupaction/Gosselin 465 Receiver General Government Organization 466 Renaud, Alain 467 Réseau de télévision Global Inc. / Global Global Television Television Network Inc. 468 Restaurant La Tarentella 469 Retail Debt Agency Government Organization 470 Ricciuto, Ildo BCE Media 471 Richard, Alain Groupaction/Gosselin 472 Rigg, Norman Palmer Jarvis 473 Roberge, Marc Lafleur 474 Robichaud, Marc IDA/Everest 475 Robillard, Michel BCP 476 Rodriguez, Pablo GGA 477 Roy, Isabelle 478 Roy, Jacques 479 Royal Canadian Mint Government Organization 480 Royal Canadian Mounted Police (RCMP) Government Organization (Headquarter) 481 Royal Canadian Mounted Police (RCMP) Government Organization (Quebec Division) 482 Saada, Jacques 483 Saputo, Joey Impact de Montréal 484 Saputo, Lino Jr Impact de Montréal 485 Satellite Publishing Inc./Les Editions Lafleur Satellite Inc. 486 Sauter, John Communication & Stratégie 487 Sauvé, Jacques BCP 488 Scott Thornley Company Inc. Scott Thornley 489 Scott Thornley, Colin Scott Thornley 490 Scully, Robert Guy 491 Sedlex Inc. Information Essentielle 492 Sensas (G.E.C.M.) Inc. IDA/Everest 493 Sentir Chasse-Peche Magazine Lemay 494 Serigraphie 2000 495 Siguier, Bertrand BCP 496 Simard, Marc TVA/JPL 497 SKS Advertising

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Appendix A: Identified Organizations and Individuals Number Name Group 498 Slemko, Morris IDA/Everest 499 SMW Marketing Communications Inc. BCP 500 Société de placement Richard G. Gervais Inc. GGA 501 Société Immobilière Alexsim Inc. Groupaction/Gosselin 502 SOS Communications 503 Southside Digital Communications 504 Sparks Communication Inc. 505 St-Arnaud, Louis TVA/JPL 506 Strike, Thomas Global Television 507 Studios Pub Design Inc. Groupaction/Gosselin 508 Super Impression 509 Surf Marketing Inc. Groupaction/Gosselin 510 Synergie Conseil & Gestion en BCP communications 511 Taft, Robert Communication & Stratégie 512 Tassé, André BCP 513 Télémission Information Inc. Information Essentielle 514 The Capital Hill Group Ottawa Inc. Communication & Stratégie 515 The Gingko Group Gingko 516 The Gingko Group Canada Ltd Gingko 517 The Ongoing Partnership 518 Theoret, Claudette Information Essentielle 519 Thiboutot, Bernard 520 TNC Multicom 521 Tonik Etcetera Marketing Inc. Lafleur 522 Torella, John A. Vickers & Benson 523 Totem Conseils Groupaction/Gosselin 524 Touch Infopublicité Inc. BCP 525 Toupin, Jean-Pierre IDA/Everest 526 Tour Cyclist Trans Canada Government Organization 527 Tourism Canada Government Organization 528 Treasury Board Government Organization 529 Tremblay Guittet Communications Inc. Tremblay-Guittet 530 Tremblay, Gaétan BCP 531 Tremblay, Michéle Tremblay-Guittet 532 Tremblay, Pierre APORS/CCSB 533 Tremblay-Guittet Tremblay-Guittet

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Appendix A: Identified Organizations and Individuals Number Name Group 534 Tribar Tribar 535 Tribar Industries Inc. Tribar 536 Trustar Limitee/Limited TVA/JPL 537 TVA TVA/JPL 538 TVA Films Inc. TVA/JPL 539 TVA International Distribution Inc. TVA/JPL 540 TVA International I Inc. TVA/JPL 541 TVA International Inc. TVA/JPL 542 TVA International VI Inc. TVA/JPL 543 U.S. Postal Service Government Organization 544 UQAM—BCP JR Les Communicateurs de BCP l’an 2000 545 Vanasse, Jean-Robert BCP 546 Vasquez, Michael Allard-Johnson 547 VBCL 548 Vennat, Michel 549 Verrault, Laurent TVA/JPL 550 VIA Rail Government Organization 551 VIA Rail Magazine Government Organization 552 Vickers & Benson Vickers & Benson 553 Vickers & Benson Advertising Limited Vickers & Benson 554 Vickers & Benson Co. Limited Vickers & Benson 555 Vickers & Benson Direct Marketing Limited Vickers & Benson 556 Vickers & Benson International Limited Vickers & Benson 557 Vickers & Benson Retail Limited Vickers & Benson 558 Vision 4 Groupaction/Focus/Compass/Acart 559 Warwick and Associates 560 Warwick, E. Joseph Vickers & Benson 561 Weaver Tanner & Miller Inc. 562 Welch, John 563 Xylo Concept Graphique 564 Yuri Kruk Communications 565 Zrihen, Phillippe

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References

Brydon, Joan (2005). “Liberals Put $750,000 in Trust Fund to Repay Questionable Spon- sorship Funds.” Canadian Press (May 18). Cernetig, Miro (2005). Toronto Star. Available digitally at www.thestar.com. Clemens, Jason et al. (2004). Government Failure in Canada, 1997-2004: A Survey of Reports from the Auditor General. Public Policy Sources Number 79 (March). Vancouver, BC: The Fraser Institute. Downs, Anthony (1957). An Economic Theory of Democracy. New York: Harper and Brothers. Federal Liberal Agency of Canada (2004). Specified Procedures Report on Amounts Received From and Paid to Named Parties for the Period from January 1, 1996 to December 31, 2003. (August 25). Available digitally at http://www.liberal.ca/pdf/report1e.pdf. Federal Liberal Agency of Canada (Quebec) (2004). Specified Procedures Report on Amounts Received From and Paid to Named Parties for the Period from January 1, 1996 to December 31, 2003. (August 25). Available digitally at http://www.liberal.ca/pdf/report2e.pdf. Fraser, Sheila (2003). “Chapters 3-10: Government-wide Audit of Sponsorship, Adver- tising, and Public Opinion Research.” November 2003 Report of the Auditor General of Canada. Available digitally at http://www.oag-bvg.gc.ca/domino/reports.nsf/html/ 03menu_e.html. Ha, Tu Thanh and Daniel Leblanc (2005). “‘It’s Up to the People of Canada to Decide.’” Globe and Mail (June 4): A8. Kroll Lindquist Avey (2005). Kroll Lindquist Avey Report: The Commission of Inquiry into the Sponsorship Program and Advertising Activities (May 18). Available digitally at http://ia200101.eu.archive.org/hdb1/items/Kroll_Lindquist_Avey_Report/KrollLindquist AveyReport.pdf. MacDonald, L. Ian (2005). “The Judge is Angry.” National Post (June 16): A22. Mitchell, William and Randy Simmons (1994). Beyond Politics. Oakland, CA: The Inde- pendent Institute. PricewaterhouseCoopers LLP (2004). Specified Procedures Report on Amounts Received From and Paid To Named Parties for the Period from January 1, 1996 to December 31, 2003. Ottawa: Federal Liberal Agency of Canada (August 25). Available digitally at http://www.liberal.ca/pdf/report1e.pdf. Samson Belair/Deloitte & Touche s.e.n.c.r.l. (2004). Analysis of Encashed Contributions from and Disbursements Made to Identified Advertising and Communication Agencies. Mon- treal: Liberal Party of Canada (Quebec) (July 15). Available digitally at http://www.liberal.ca/pdf/report2e.pdf

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Acknowledgements

The author is grateful to Brett Skinner, Jason Clemens, and Michael Walker at The Fra- ser Institute for their very helpful comments in the course of reviewing and improving this paper. Any errors and omissions are strictly the responsibility of the author.

About the author

Mark Mullins is the Director of Ontario Policy Studies at The Fraser Institute in Toronto. He has a doctorate in economics from the London School of Economics and was formerly a chief economist in the financial markets and a public policy consultant.

Fraser Institute Digital Publication July 2005 Accounting for Gomery 36

About this publication

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Date of issue

July 2005

Editing, design and production

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