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Political Responses and Impact

This section provides a summary of political responses to and impacts of the Auditor General's Report. It includes the public responses of Prime Minister Paul Martin and Opposition parties, actions taken by the current government, the RCMP criminal investigation, and the impact of the Report on the Liberal Party of Canada.

Political Responses to the Report

  • Prime Minister Paul Martin – Following the release of the Auditor General's Report, Prime Minister Paul Martin provided several releases and statements. Prime Minister Martin expressed anger with the inappropriate actions taken by the government in the Sponsorship Programs. He further asserted that due to his strained relationship with then Prime Minister Jean Chretien, he was not privy to government sponsorship activities. Prime Minister Martin also committed the government to a full inquiry of the Sponsorship Program and the prosecution of any wrongdoing.
  • Opposition Parties – Both the Conservative Party and the New Democratic Party attacked the government handling of the Sponsorship Program and the Prime Minister's response to the Auditor General's report. The Opposition parties alleged the Liberal government of being corrupt and of attempting to hide its activities from Canadians. The Opposition parties questioned Prime Minister Martin's assertion that he was not made privy to information regarding the government's sponsorship activities while he was minister of finance under Prime Minister Chretien.

Government Action and Inquiries

In relation to the release of the Auditor General's Report, Prime Minister Martin's Liberal government undertook several actions:

  • Abolishment of Sponsorship Program – In December 2003, prior to the public release of the Auditor General's report, the government cancelled the Sponsorship Program and dissolved Communications Canada, the branch of the Public Works Department that was responsible for the program.
  • Independent Commission of Public Inquiry – The government has created an independent Commission of Public Inquiry to examine past behaviour in the sponsorship and advertising programs. The intent is to formulate recommendations to prevent any abuses, breaches or ethics or mismanagement in the future. The Commission will have all the powers set out in the federal Inquiries Act , including the authority to hold public hearings, summon witnesses and gather such evidence as needed to conduct the inquiry. Mr. Justice John H. Gomery of the Quebec Superior Court has been appointed to lead the Commission.
  • Special Counsel for Financial Recovery – The government has also created a Special Counsel with the mandate to pursue all possible avenues, including civil litigation, to recover funds that were improperly received by certain parties involved in the delivery of the sponsorship program. Mr. Andre Gauthier has been appointed to the position of Special Counsel.
  • Legislation to Protect Whistleblowers – The government announced its intention to introduce legislation to protect whistleblowers no later than March 31, 2004. The legislation's purpose is to create an environment in which employees feel safe in coming forward to report incidents of wrongdoing.

RCMP Criminal Investigation

The RCMP are actively conducting a criminal investigation into sponsorship files upon referral by the Office of the Auditor General and by the Department of Public Works and Government Services . The criminal investigation began in 2002 when the Auditor General referred its findings concerning Groupaction, and has expanded following the latest findings of the Auditor General.

However, the RCMP itself has now been linked to the investigation. According to the latest Auditor General report, the RCMP received government sponsorship for its 125 th Anniversary celebrations, in which some of the monies were paid to communications agencies.

To ensure the integrity of the criminal investigation and to reduce concern of conflict of interest, the RCMP consulted the Attorney General of Quebec, who is responsible for the prosecution of criminal charges relating to government sponsorship of the RCMP in Quebec. Upon the advice of the Quebec Attorney General, the RCMP is currently in consultation with the Sûreté du Québec on the future conduct of that portion of the criminal investigation that touches upon the RCMP 125 th Anniversary file.

Impact on the Liberal Party

The Auditor General's Report has had large political consequences for Prime Minister Paul Martin's Liberal government.

  • Image of the Prime Minister – The events of the sponsorship program occurred under former Prime Minister Jean Chretien. Current Prime Minister Paul Martin has denied knowledge of the details of the Sponsorship Program. Nevertheless, the incident has resulted in a questioning of the Prime Minister's credibility by both Canadian voters and Opposition parties. The Prime Minister has attempted to restore his image by aggressively pursuing inquiries and possible prosecutions on the matter, while also committing himself to testifying at the public inquiry if called upon.
  • Support for the Liberal Party – Electoral support for the Liberal Party has dropped significantly since the release of the Auditor General's Report. Immediately following the release of the report, Liberal support dropped to 35 percent, down from 48 percent in January 2004. Liberal support later stabilized at 36 percent in late February 2004. Support for Opposition parties rose at the same time, with the Conservatives, NDP and Bloc garnering 27 and 17 and 11 percent support respectively.
  • Timing of Next General Election – Prior to the release of the Auditor General's report, the Liberal government of Prime Minister Paul Martin was poised to call a general election in Spring 2004. The election's early timing would allow the Liberal Party to take advantage of the Conservative Party 's weak position, which is currently undergoing its merger, formulating its policy platform, and electing a new leader. However, the Auditor General's report and subsequent loss of electoral support for the Liberal Party may push the date of the election back several months.

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