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Sponsorship Program BackgrounderThis section provides background on the government's Sponsorship Program, including its origins and mandate, its links to communications agencies, and the Groupaction scandal and events leading to the Auditor General's Report. Sponsorship Program OverviewIn November 1997, the government created the Communications and Co-ordination Services Branch (CCSB) as part of Public Works and Government Services Canada (PWGSC). The mandate of CCSB was to co-ordinate, promote, advise, and facilitate federal communications initiatives. The CCSB created the Sponsorship Program to deliver this mandate . Under the program, the government provided organizations with financial resources to support cultural and community events. In exchange, the organizations agreed to provide visibility for the national government. For example, by posting Canadian symbols such as the Canada word mark (What is the Canada word mark?) or the Canadian flag. The goal of the Sponsorship Program was to encourage a positive perception of the national government by associating it with popular sport and culture events and organizations. This was particularly important for the national government in the province of Quebec. Communications Agencies and SponsorshipsCommunications agencies were heavily relied upon in the provision of the Sponsorship Program. These agencies were contracted by the CCSB to manage the outlaying (what does outlaying mean? I'd suggest a new word here) of sponsorships. Sponsorships less than $25,000 were to be managed only by a communications agency contracted by CCSB. Sponsorships more than $25,000 were to be managed by both a financial management agency, as well as a communications agency. Between 1997 and 2003, the government provided approximately $250 million in sponsorship programs to almost 2,000 events. The Auditor General reported that over $100 million of that expenditure was paid to communications agencies as production fees and commissions. Events Leading to the AG ReportIn March 2002, the Minister of Public Works and Government Services asked the Office of the Auditor General to audit the government's handling of three contracts totalling $1.6 million that had been awarded to Groupaction Marketing, a Montreal-based communications agency. In May 2002, the Auditor General released the report. The report found that senior public servants responsible for managing the contracts demonstrated a disregard for:
Full Text of Report on Groupaction Marketing As a result of the Groupaction findings , the Office of the Auditor General took two actions. The Auditor General referred the matter to the RCMP for possible criminal activities. The RCMP launched an investigation that resulted in a raid on Groupaction offices and the request of government documents from Public Works and Government Services Canada. The Auditor General also decided to undertake a government-wide audit of the Sponsorship Program, as well as the public opinion research and advertising activities of the Government of Canada and Crown Corporations. Next >>
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