March 20, 2005

One-stop Adscam review

Mar. 20 - Lorne Gunter has a nice compilation of Gomery inquiry revelations about Adscam in the Edmonton Journal and a compact paragraph that lays out David Dingwall's role:

... In perhaps the most incestuous Adscam deal, Lafleur hired the minister who created Adscam, David Dingwall, to lobby the federal cabinet to give more money to VIA Rail, itself an Adscam player and recipient. In a twist of intrigue worthy of Kafka, sponsorship monies were paid to a sponsorship ad agency to pay the sponsorship program's founder to lobby the source of sponsorship cash -- Ottawa -- for even more sponsorship money for a Crown corporation that was already dispensing buckets of sponsorship cash. Over just seven months, Dingwall received $133,500 from Lafleur ($19,000 a month).
Must read.

(Link via Neale News.)

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March 18, 2005

Party financing and national unity

Mar. 18 - A portion of our taxes are now turned over to political parties to pay for their campaign expenses during federal campaigns. This legislation, which came into effect in 2004, was heralded as ending the corrupting influence of corporations, through their donations, on political parties.

Let me repeat: my tax money goes to finance the election campaigns of parties with which I vehemently disagree, such as the Bloc Quebecois, which advocates separation from Canada. As the money is apportioned to the politcal parties based on the percentage of votes they garnered in the previous federal election, I don't even have a little box on my tax form to indicate to which party I want my involuntary donation to be directed.

Corporate donations to finance political parties = bad. Nassty corporations. We don't likes them or their filthy lucres.

Earmarking taxpayer dollars to finance political parties = good. Stoopid taxpayers. They don't have the sense to know to which parties they should give their money. We don't trust them to make sensible, personal decisions, so we'll make those decisions for them.

Stealing taxpayer dollars, under the guise of promoting national unity, to finance the Liberal Party = genius. National unity is best achieved if there is only one political party, the Liberal Party. There can be only one.

Adscam started as an inquiry into the funneling of tax dollars to Liberal-friendly advertising agencies and the appearance was that these funds were in payment of services received or about to be received, but testimony again today indicates that actual cash donations were funneled back to Liberal Party workers.

CBC News: Groupaction masked payments to Liberals, Gomery told:

Bernard Thiboutot worked for former Groupaction advertising executive Jean Brault, who made millions from the sponsorship program.

Thiboutot, who had his own consulting company, told the inquiry that Brault asked him to send five cheques worth $57,000 to five people. Brault then paid Thiboutot $57,000.

The inquiry hasn't yet heard what type of work the five did, but Radio-Canada says Michel Monette, Jacques Roy, Guy Bisson, Franco Iacono and Louis Pichette were all Liberal Party organizers.

Bisson worked on the Liberal campaign in 2000, Roy worked as an organizer for the Liberals in Montreal, Monette worked on the Liberal campaign in Laval, Iacono was a lobbyist who used to work for former public works minister Alfonso Gagliano and Pichette was a Quebec campaign worker.

Brault didn't want to appear connected to the five people, Thiboutot said. The payments instead went through Thiboutot's company, Commando Marketing, in the same week in October 2000 that former prime minister Jean Chrétien called a federal election.

Brault faces criminal charges related to the sponsorship scandal and has been named in a $41-million government lawsuit.

Thiboutot also testified that Brault pressed him to make two contributions of $10,000 to the federal Liberals.

Earlier in the inquiry, another communications executive, Gilles-André Gosselin, said Brault asked him to make a $10,000 donation to the Liberals.

There are bigger questions which have yet to be addressed, and the biggest one is the ease with which the Prime Minister usurped the powers of Council and Parliament. That must be addressed but has not been addressed. That is my biggest concern, but I'm just an American who doesn't understand all this enlightened stuff and worries about minor stuff like a Prime Minister who promises a Parliamentary debate on ballistic missile defense but suddenly announced the decision without a public debate. Martin promised to address the "democratic deficit" in Parliament and he did so in a manner reminiscent of Ed Norton's advice to Ralph Kramden in the golfing lesson: Hel-lo ball!

Then there is the involvement of Canadian civil service workers and patronage appointees in furthering the misappropriation of public funds. The systems of political patronage appointees as well as the hiring and promoting civil service workers desperately needs reform. Whistle-blower protection also needs to be enacted.

Another mega-question is how millions of taxpayer dollars could be stolen over a period of several years and nobody knew, including the Finance Minister, who at that time was current PM Paul Martin. (I can't help wondering if his new persona, Mr. Dithers, is a smokescreen as he might be forgiven for being a bumbling fool but not for being competent and thus a knowing enabler of Adscam.)

A new controversy has recently arisen about the use of federal funds to finance foundations, many of which bank rather than spend the money, none of whom are accountable for the public funds they receive, and the potential of that money to find its way back into Liberal Party coffers.

Non-accountability, thy name is Bureaucracy, and that issue is also at the heart of the Oil-for-Food scandal as well as Adscam.

[N.B. Despite the plethora of Quebec locations, this is a scandal involving the federal Liberal Party, not the provincial Liberal Party. There is a difference.]

Personal aside: I'm tired of those who shoot back "Yeah, what about Watergate?"

What about it? Did the Nixon campaign steal millions of taxpayer dollars to finance his campaign, or did they misuse private donations to the 1972 Republican election campaign? As we say back home, That dog won't hunt.

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March 15, 2005

Fighting Quebec separatists in Italy

Mar. 15 - Adscam is a bewildering mess. Now it has taken on international dimensions.

Separatists were everywhere! The danger was so great in Chretien's own riding of Shawinigan that it received it too received money:

Former prime minister Jean Chretien's riding was a major destination for money from a $490,000 annual sponsorship slush fund in the 1990s, an inquiry was told Monday.

Documents tabled at the inquiry into the federal sponsorship program include several references to sponsorship allotments in the 1990s for "unforeseen events," including several in Chretien's former riding, which used to be known as Saint-Maurice.

The events include a hot-air balloon show, a canoe festival and the Grand Prix de Shawinigan-Sud automobile race.

And Alfonso Gagliano
... attended a ceremony in Italy where nearly $7,000 of sponsorship funds were used to brand a small village with the Maple Leaf. ..

Documents show the plaque, marking a spot called Canada Place, was inaugurated in May 1998 in the south-central Italian village of San Martino.

The documents also suggest the project's true source of funding was initially hidden. The plaque was not explicitly named as a funded sponsorship project, but was instead accounted for under money allotted to a ice-sculpture show that took place under a similar name in Ottawa."

Shameless. I'm trying to imagine Gagliano and Chretien each saying "I am not a crook."

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March 01, 2005

Frechette blocked UNSCAM probe

Mar. 1 - Investigations into UNSCAM have revealed a systematic attempt by the Deputy Secretary-General, Canadian Louise Frechette, to block results of audits into the Oil-for-Food program from the Security Council:

UNITED NATIONS — With U.N. Secretary-General Kofi Annan next up for review by Paul Volcker’s inquiry into the Oil-for-Food scandal, a crucial question is whether Volcker will expand upon information tying the scandal directly to the U.N. chief’s office — by way of Annan’s second-in command, Louise Frechette.
Louise Frechette went to the U.N. after out of a long career with the Canadian civil service including a term as Canadian Ambassador to the U.N. 1992-1995. She became the first Deputy Sec.-Gen. of the U.N. in 1998. Is that sufficient Cancon to put this story on the CBC Evening News?
Four years into the seven-year Oil-for-Food program, with graft and mismanagement by then rampant, Frechette intervened directly by telephone to stop United Nations auditors from forwarding their investigations to the U.N. Security Council. This detail was buried on page 186 of the 219-page interim report VolckerÂ’s Independent Inquiry Committee released Feb. 3.

This decision from within AnnanÂ’s office left only the Secretariat privy to the specifics of the waste, bungling and contractual breaches detailed by U.N. internal auditors in dozens of damning reports. The extent of what AnnanÂ’s office knew was not available either to the Security Council or the public until Congress finally forced the issue and the United Nations produced the reports in conjunction with a Volcker "briefing paper" in January.

[...]

Frechette’s actions stand in sharp contrast to the assertions of Annan and his public relations staff that the Security Council – and not the Secretariat – supervised the more than $110 billion Oil-for-Food program. Her decision, as documented by Volcker, also places responsibility squarely in the secretary-general’s office for obscuring mismanagement of the program from the Security Council.

The cover-up did not stop with Benon Sevan, the now-disgraced Oil-for-Food executive director, who reportedly blocked audits that originated lower in the chain of command. The obstruction went all the way up to AnnanÂ’s office on the 38th floor.

Frechette's intervention was disclosed by the Volcker committee as the result of an interview with Dileep Nair, head of the U.N.'s Office of Internal Oversight Services (OIOS), the organizationÂ’s internal watchdog. In the year 2000, NairÂ’s audit department repeatedly urged that audits of Oil-for-Food be sent to the Security Council.

On Nov. 30, 2000, NairÂ’s top auditor sent a memo to Sevan informing him that despite his objections, the auditors planned to start sending reports on Oil-for-Food to the Security Council. By NairÂ’s account, what settled the issue was a telephone call from Frechette, who came down on the side of Sevan. After that, reports Volcker, Nair "abandoned the effort to report directly to the Security Council on [Oil-for-Food] matters."

When questioned about the telephone call at a recent press conference, Frechette said she had no recollection of it. “But I’m quite prepared to accept Mr. Nair’s recalling the conversation,” she told reporters. (Bolding added.)

The article mentions that although the Volcker Commission interviewed Frechette, the results as well as her name were not published. During her tenure as Canadian Ambassador to the U.N., current Volcker executive director Reid Morden was the Canadian Deputy Minister.

That explains something else to me: why the name of former Canadian PM Jean Chretien and his ties to Paul Desmarais as well as Paribas and Total haven't been made more public.

So what did Frechette know and when did she know it?

Frechette had connections to a number of Oil-for-Food figures. She had direct oversight of both U.N. watchdog Nair and Oil-for-Food director Sevan, although both reported to the Secretary-General. .. Asked why Frechette was mentioned only by title, not by name, Morden refused to comment.
Audits were blocked with the excuse that it would be a waste of money to audit a "program with an uncertain future" but evidently the temporary nature of the program was sufficient to spend $3 million to rent and renovate new officies for it.

I've already quoted too much from the news report, but Canadians who have followed the Adscam inquiries will probably recognize that some aspects of the failure to audit the Oil-for-Food program parallel those which allowed millions of dollars to be stolen in the name of national unity.

As with Adscam, the U.N. Oil-for-Food Program was introduced for a worthy goal, in the latter case to assist the people of Iraq who were harshly affected by the oil sanctions imposed when Saddam didn't meet his obligations under the cease-fire that ended Gulf War I.

As with Adscam, those administering the program reported directly to the top, i.e., the Secretary-General's office, not the U.N. Security Council.

And, as with Adscam, the U.N. Oil-for-Food Program was cynically manipulated to enrich individuals, too many of whom are connected with Jean Chretien.

Also, please keep in mind that there are no provisions to protect "whistleblowers" in the U.N.

The closing paragraph is particularly amusing:

Among other things, that audit found that Sevan had failed to hold any management meetings of his Oil-for-Food team for the previous two years. It remains to be explained how that fact had escaped the attention of SevanÂ’s direct supervisor, Deputy Secretary-General Louise Frechette, or that of Kofi Annan himself.
As with Adscam, ...

[Note: I've edited out the (search) markers in the Fox Report.]

Mar. 2 - Kate has kindly linked to this post, and has done some research which ties Volcker, Frechette, Morden, Desmarais and Maurice Strong. Sheesh, is anyone of influence in Canada not connected to Desmarais?

Naturally, I expect a major story on the CBC about these revelations, as well as outraged editorials in the Star and Globe and Mail. It shouldn't be too hard, as bloggers have done the digging.

Just imagine this was about Halliburton - I'm certain it would be plastered all over the front pages, but something with true Cancon can't summon a particle of interest. The words smug hypocrisy barely covers it. (And you folks in the USA think you have a problem with the myopia of MSM? Trust me, we've got you beat.)

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