Sponsored by the Government of Canada

This is my summary of the Kroll Report (I'm trying to get a better link as the CBC's does not allow you to open the Schedules and I am also trying to clarify some points with Kroll).

Note: I recently received an email from the Gomery Commission to let me know that the Schedules are not available but have been submitted as evidence. Those schedules hopefully, will clear up why $40 million for fiscal years 1999-00, 2000-01, 2001-02, 2002-03 of SPS funding that was submitted to the Treasury Board without details of how the money was to be spent. (See KP - pgs 41-42)

I added "details" to the information that was not submitted to Parliament as opposed to the $40 million because it was coming across as the full amount withheld. The two news broadcasters may be waiting for the Schedules to come available so they don't get sued, unlike myself, who is waiting for it any day now...any day... (default to sarcasm)

CTV nor the CBC siphoned through the Kroll Report. Both only announced that the new amount of Sponsorhip money is increased to $355 million from $250 million. I'd like to thank those two stations for not informing the public about what our government did in order to get that extra money to the Sponsorship programs.

The two did focus on Liberal Party donations which is up over the $2 million mark (if cash envelopes are included) but they didn't extrapolate that Kroll indicated dividends from the investment of public money given to the ad agencies were paid out to the Liberal Party in some instances.

Since there is no list of shareholders for each of the companies in this report, the amount the Liberal Party of Canada received is probably underestimated as each of those shareholders in each of the ad agencies could have donated as well.

In some instances an ad agency received 100% of their business from the Government of Canada. Talk about recycled money!

The PMO, The PCO and The TB

The Prime Minister, the Privy Council Office and the Treasury Board approved $40.1 million dollars for Special Programs and Sponsorship (SPS) spending of the public revenue without Parliament's approval for authorization to spend. $16.5 million was transferred to Public Works by other Government of Canada departments for SPS contracts. $305.1 million of the public revenue for SPS was managed externally by third party agencies. Only $26.8 million was managed internally by the Government of Canada.

Public Works repeatedly did not provide the Parliament with detailed information or segregated data on how each branch of the department was going to utilize the money for SPS, in some cases information was withheld from Parliament yet allowed requests for public funds to go undetailed by the Treasury Board. Kroll could not continue their audit because documentation was missing from the Ministry for specific years early in the formation of the setup of the SPS account.

Gagliano and Deputy Minister Ram Quail allowed extra funding in the order of $15.58 million for SPS through the Public Works Corporate Services Reserve Account. Public Works and the Canada Information Office who advertising was handled by Public Works submitted duplicate requests for 7 projects.

$1.1 billion was allocated to advertising by the Government of Canada on top of the $355 million already allocated to SPS. Other government departments passed on money to Public Works for SPS and some government departments allowed Public Works to manage their advertising accounts. In particular, the Canada Mortgage and Housing Corporation advertising account was handled by Public Works as well as the Canada Information Office.

Other government offices passing money to Public Works for SPS programs:

1) Canadian Tourism Commission
2) Industry Canada
3) Finance Canada
4) Health Canada
5) National Defense
6) Human Resources Development Canada
7) Natural Resources Canada
8) Canada Information Office
9) Justice Canada
10) Heritage Canada
11) Public Works and Government Services Canada
12) Canada Customs and Revenue Agency

All of the Ministers of these departments weren't aware that money was being funneled outside of government oversight?

NOTE OFF TOPIC: PWGS Canada is also responsible for security checks and has handed out contracts for security clearances to private companies such as Manpower Services Canada, a temporary employment agency that is now being investigated for violations under the Ontario Human Rights Code. Manpower also supplies temporary workers to the Canada Customs and Revenue Agency, particularly in Windsor Ontario, whose employees also need security clearances or reliability checks performed by Manpower via Public Works who has given staff at Manpower secure status to inquire about people. Correction: C.S.I.S gives reccomendations to Public Works for security clearances but their decisions are non-binding. Security clearances are also given by law enforcment agenices (including local) via their C.I.P.I.C database. Once given, the government does not have to follow C.I.S.I.S's recommendations. So, if Gagliano has ties to organized crime and his Ministry had responsibility for handing out security checks that does not have to following the recommendations of our security officials, what does that say about our security?

Commence Report:

From the fiscal years 1995-96 to 2001-02, there was NO Parliamentary approval for $41 million of the public revenue for the Public Works budget. (KR - pg 55, Tbl 51).

Authorization for the spending was given by the Prime Minister in either obtained by his signature in approving the Treasury Board submission or indicated in a Privy Council Office memorandum. (KR - pg 55, Tbl 51)

The 1995-96 fiscal year indicated the funding request was related to ‘Canadian Unity related advertising and Public Opinion research activities’. Specific lists of projects were included the submission to the PMO and TB in the fiscal year 1996-97. (KR - pg 55, Tbl 51)

Under the Constitution Act, 1867, expenditures of public revenue have to pass through Parliament.

The Kroll Report (KR) has indicated that the amount of $355 million, $105 million over the Auditor General's amount, was increased because other funding was given by various departments of the Liberal government for SPS on top of that given within the Public Works budget for SPS.

Any requests for money, under Treasury Board rules, were supposed to document what the money was to be used for by segregating the budget for each use. This was not done but allowed to pass through the TB and PMO's office for authorization to spend, the details bypassing Parliament.

Anything that was submitted to Parliament for SPS spending did not contain appropriate details in "Reports on Plans and Priorities" (RPPs), "which include the individual expenditure plans for each department". Any increased spending over the budget does not have spending authority and has to go back to Parliament to be voted on.

"The amounts for the SPS in the Public Works budget for years 1995-96 to 1998-99 were not specifically identified in the details of the budget included in the RPP’s provided to Parliament." (KP - page 41)

"For the fiscal years 1999-00 to 2001-02, the Treasury Board approved $40 million for SPS in Public Works budget ". (KP - page 41)

Public Works have two branches of many. One is called the Communications Coordination Services Branch or CCSB and the other Advertising and Public Opinion Research Sector (APORS) who each receive part of the Public Works budget.

"CCSB did not specifically indentify or segregate the $40 million in the yearly RPP for Public Works which was provided to Parliament for use in the approval of the overall Government of Canada budget."

Misleading by withholding information from Parliament is tantamount to contempt of Parliament and frauds upon the government by its own Prime Minister, Treasury Board and Public Works Minister.

In the 1997-98 fiscal year, $2 million and $8.48 million were transferred from other branches within Public Works to APORS/CCSB for payment of SPS.

"This funding came from Corporate Services Reserve Account within Public Works. Guite or Trembly had no authority over the Corporate Services Reserve Account. $7.1 million and $8.48 million was approved by the Deputy Minister Ran Quail of Public Works based on his discussion with Minister Gagliano of Public Works" (KP- pg 53)

"Duplicate funding for 7 events by Public Works or the advertising contract handled for Communication Information Office by Public Works was not identified in either the TB submission used to obtain money from the Unity Reserve for Public Works or in the funding sought by the CIO". (KP - pg 58)

$305.1 million of the public revenue was allowed to be managed externally by third party agencies and only $26.8 million of the public revenue was managed internally by the Government of Canada (KR - pg 20 table 5).

The Liberal government allowed $305.1 million dollars of public revenue to be managed outside of government controls.

What company in this world would allow their money to be managed outside of their control and why would the Liberal government allow such management to occur?