Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 14, 2005, Winnipeg, Manitoba By Brian Daly m ont real work at phantom olympic stadiums throughout Quebec was included in bogus Billings that a Good Friend of Jean Chretien submitted while raking in $ 6.7 million in sponsorship income an inquiry heard yesterday. The fake Bills Complete with non existent stadiums were turned in by Liberal organizer Jacques Corriveau for a series of regional Hunting and fishing shows that did in fact take place promoter Luc Lemay testified at the inquiry into the sponsorship scandal. Many of the Bills were duplicates of a legitimate invoice that Corriveau submitted for one of be Mays Hunting and fishing shows at Mont realms olympic stadium in 1999. Lemay said Corriveau did Little work or no work on the regional events and simply substituted the names of the smaller communities but left the rest of the document unchanged. Laughter erupted when inquiry counsel Bernard Roy noted Corriveau billed thousands of dollars for working at the olympic stadiums in Sherbrooke trois rivieras Rimouski Chicoutimi and Ste Foy a suburb of Quebec City. Rimoun skins entire population could easily fit into Mont realms costly 50,000 seat olympic stadium with room to spare. To your knowledge is there an olympic stadium in Rimouski asked Roy adding these details escaped you because you did not examine the Bills. Lemay replied essentially. Corriveau a Central figure in a corruption scandal that could trigger a Federal election did almost nothing to earn the big Cut from federally sponsored events Lemay testified. It Isnit Clear what Corriveau who will testify today did with the Money. And executive Jean Brault has said Corriveau funnelled huge Cash sums to the Liberal party. Lemay owner of Groupe polygon admitted to rubber stamping Corrie aus Bills from 1996 to 2002, sometimes paying Corriveau More than the value of an entire contract. Presiding judge John Gomery said he believe Lemay signed off so blindly on Corrie aus Bills. I have trouble believing you simply accepted any Bill for any amount said the judge. You Arentt the businessman i thought you were Corriveau had been acting As a lobbyist to steer sponsorship deals to polygon which eventually handled $ 41 million in contracts. Lemay a publisher and exhibit promoter admitted that Corriveau did almost no work for 17 of 19 events Worth $ 36 million. Corriveau also a graphic designer had Cut himself in on the lucrative deals at 17.5 per cent but did Little More than eyeball lockups for most of the contracts said Lemay. A $ 2.7 million Peoples almanac contract and the Montreal outdoors show were the Only two of 19 federally sponsored events for which Corriveau played a major role said Lemay. As for the other 17 events Worth nearly $ 28 million Lemay said he had a Good Faith agreement to pay commissions to Corriveau but did not ask for details about Corrie aus work. The Bills also indicated Corriveau performed professional services when in fact his income came from commissions earned after lobbying the Liberal government on be Mays behalf. Very possibly he did not want it to show that it was commissions Lemay admitted to presiding judge John Gomery. The judge then gave Lemay a Quick lesson on ethics. One is not supposed to use their influence their contacts with the government to secure contracts right said the judge. He added youve never heard about what we Call influence peddling thatus forbidden in the Public service Lemay simply shrugged. Brault has implicated Corriveau and Lemay in the wide ranging scheme that allegedly used by aults group action firm to secretly funnel at least $ 1.1 million to the part yes debt Ridden Quebec Wing. Brault said he paid Corriveau nearly $ 500,000 under a bogus contract and alleged Corriveau sent the Cash to the Quebec Wing. Brault a hons Semi retired also testified Corriveau pressed him to make huge financial contributions while one of be Mays firms allegedly paid Brault $ 2.3 million in bogus commissions to offset the part yes financial demands. Canadian press these details escaped you because you did not examine the Bills inquiry lawyer Bernard Roy to promoter through whom payments were funnelled by sue Bailey Ottawa the Taxman has rarely been so cursed and abused. Seething callers have lit up the phones at the Canadian taxpayers federation says the watchdog group. They re furious about mounting sponsorship allegations of government fraud and corruption. And the timing be any worse for the governing liberals. Across the country revelations about How millions of Public dollars were spent Are sinking in just As the april 30 tax deadline looms. Folks Are writing cheques to the Federal government then they re hearing All about the waste and mismanagement coming out of the Gomery inquiry says John Williamson National director of the federation. People see red when they see their Money being wasted like that. Tax experts h & r Block Are reporting no such anger but Williamson called it the Cherry on the sundae crowning Liberal party woes. Its bad enough that its All happening. But to have it happen on the eve of tax filing just makes a bad situation even worse in terms of How canadians Are feeling about the Federal government. Nobody likes to pay taxes lets face it. Still Williamson says people must resist any urge to hold Back their cheques. People should pay their taxes and then take out their anger at the ballot Box and it looks like they re going to get that Chance sooner rather than later. There Are growing expectations of an election As Early As june. Liberal popularity has slipped As the conservatives Benefit from swelling Public anger Over How the $ 250 million sponsorship program was run. Auditor general Sheila Fraser reported last year that up to $ 100 million of sponsorship Money was funnelled to Liberal Friendly Quebec and firms for work of questionable value. The inquiry headed by Justice John Gomery has since heard allegations that More than $ 1 million wound up in Liberal hands As kickbacks for lucrative Federal contracts. Taxpayers a vent been this angry since then finance minister Paul Martin mused 10 years ago about raising taxes to help fight the deficit Williamson said. That idea was quashed when voters took to the streets in no More tax rallies across Canada. An h & r Block spokesman says hers not aware of any outrage Over the sponsorship scandal. Canadian press by Alexander Panetta Ottawa the opposition conservatives raised questions yesterday As to whether prime minister Paul Martin might have perjured himself before the sponsorship inquiry. In the commons Martin was accused of giving a vague reply during his february appearance at the inquiry where he was questioned about his relationship with an and executive implicated in the sponsorship scandal Claude Boulay. Martins response at that time conflicts with More recent testimony from another witness the conservatives charged yesterday. The prime minister May frankly have perjured himself conservative my Jason Kenney said during question period. I am going to give the prime minister one More Opportunity to set the record straight Between this conflicting testimony. Martin was pressed repeatedly in the commons on a possible discrepancy. He did not respond directly but deflected questions by either attacking the conservatives on health care getting his Public works minister to answer or simply pointing out he never helped Boulay land a government contract. My testimony is a matter of Public knowledge Martin said. Any allegation that i interfered in any contract is a lie. The heated questions in the commons stemmed from a Brief Exchange Martin had with inquiry lawyer Neil Finkelstein last february. Martin said at that time that Boulay head of Liberal Friendly and firm Groupe Everest helped with his 1990 leadership Campaign. But Boulay was let go when he wanted to be paid. The prime minister was asked do you recall any meeting or get together of any significance beyond a casual How do you do a no no Martin replied. Yesterday the conservatives said that response conflicted with testimony at the inquiry this week from Alain Renaud a Liberal organizer and group action employee also implicated in the scandal. Renaud said he overheard Boulay and his wife Diane deslauriers pushing Martin for an attractions Canada contract at a Liberal convention. In his testimony Martin conceded head never had a meeting with Boulay beyond saying How do you do a yet at the same time Martin described a closer relationship. Or. Boulay and his wife i would describe As acquaintances. I dont know them Well but i do see them Martin is quoted in the transcripts. Public works minister Scott Brison avoided addressing accusations. But in the House he described Martin As an honest Man who called the inquiry himself despite the political fallout. But the conservatives were unsatisfied. Conservative Leader Stephen Harper called Martins performance yesterday pathetic. Theress direct contradiction in his Gomery testimony sworn testimony with the testimony of another witness Harper said. I asked the prime minister very simply if that meeting took place and he refuses to answer. Canadian press tory my Kenney wants Martin to set record straight on testimony the g Omery i inquiry liberals under siege w Winnipeg f ree p Resst thursday pril 14, 2005 a7 watchdog group says taxpayers Seething people see red when they see their Money being wasted like that John Williamson Canadian taxpayers federation attacking tories wonder if Martin perjured himself pms inquiry testimony grabs question period spotlight sex pms Friend dots Quebec with stadiums bogus olympic facilities pop up in rash of sponsorship Billings Paul Chiasson / Canadian press Lemay pauses As he testifies at the Gomery commission yesterday. Fred Chartrand / Canadian press ;