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While information on the misuse of funds had been known for a few years, a fuller account of the situation was made public in early February 2004 by Auditor General Sheila Fraser. In her report, Fraser revealed that up to $100 million of the $250 million spent on the sponsorship program from 1996 to 2001 had been paid for little or no work. It is interesting to note that Fraser's report was originally scheduled to be released in November 2003, when Jean Chrétien was Prime Minister. However, parliament prorogued and the report could not be tabled until parliament reconvened in 2004. Late in 2003 Chrétien retired and Paul Martin was chosen as the new leader of the Liberal Party, thus becoming Prime Minister. The fall-out from the scandal now landed squarely in Martin's lap.
The sponsorship program was originally conceived in 1996 and was a response to Quebec's nearly successful secession referendum in 1995. Funds were allocated to promote Canada through cultural and sporting events in Quebec, where separatist sentiment was still strong.
Allegations of misuse of funds and RCMP investigations began in 1999, but little was known of what had occurred and the public showed little interest in the affair. In 20022002 is a common year starting on Tuesday (see link for calendar). 2002 was the first palindromic year since 1991 and the last until 2112. 2002 was also designated: International Year of Ecotourism and Mountains National Science Year in the United Kingdom Alfonso GaglianoAlfonso Gagliano (born 1942, Sicily) is a Canadian lawyer and Liberal Party politician. His political career began in 1977 when he ran for a seat on the Montreal school board. In 1987, he ran for Parliament defeating a popular Progressive Conservative can, the minister supervising the department responsible, was removed from cabinet and sent as ambassador to DenmarkKongeriget Danmark ( In Detail) Motto of the Queen: Guds hjaelp, Folkets kaerlighed, Danmarks styrke (English: God's help, the love of the people, Denmark's strength) Official language Danish Capital Copenhagen Kobenhavn Monarch Margrethe II Prime Ministe.
The scandal reemerged into the public spotlight in February 2004 when the Auditor General's investigation of the affair was revealed. She blamed not only Public Works, but powerful Crown Corporations including VIA Rail and Canada Post. Given the scandal's breadth, the report also raised questions as to what involvement, if any, the Prime Minister's Office had in the misuse of funds. The report found that over $100 million ( Canadian) was misused.
New Prime Minister Paul Martin responded to the report by immediately firing Alfonso Gagliano from his position of ambassador to Denmark and launching a public inquiry into the matter. Martin, who was Finance Minister from 1993 to 2002, has insisted the scandal was orchestrated by a very select group of individuals and that he had no knowledge of their actions. In a further attempt to distance himself from the scandal, he blamed the problems on the previous administration of Jean Chrétien, under which the spending occurred. A number of the people most closely embroiled in the scandal are Chrétien loyalists, such as CEO of Canada Post André Ouellet and head of VIA Rail Jean Pelletier. Martin also put his job on the line by stating, "Anybody who is found to have known that people are kiting cheques, that people are falsifying invoices -- me or anybody else -- should resign." [1] Opposition critics have alleged that Martin could not have been unaware of the activities, as he was Finance Minister, a senior Quebec cabinet minister and a member of the Treasury Board during the time of the scandal.
In the weeks following the Auditor General's report, it became clear that the upcoming election would be affected in some way. Some argued that voters should know the outcome of the enquiry before going to the polls, in order to have an informed decision; others believed the Martin government should not continue for long without seeking a mandate. In the end, the election was called for June 28, 2004. The result of this election was a minority government.