INDEPTH: SPONSORSHIP SCANDAL
The paper trail
CBC News Online | April 7, 2005
Advertising executive, Jean Brault (CP file photo)
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The Quebec wing of the Liberal Party of Canada used the sponsorship program to funnel money into its coffers, a former ad executive charged this week at the Gomery inquiry.
Jean Brault, former head of Groupaction Marketing, says he agreed in the spring of 1998, to funnel 10 per cent of the 12 per cent commission fees he charged on major sponsorship contracts to the party's Montreal offices.
Brault says he was pressured to do so by Jacques Corriveau, head of Pluridesign Canada, and a well-connected Liberal fundraiser with close ties to former Prime Minister Jean Chrétien.
Corriveau played a key role in Chrétien's leadership campaigns and once hired Chrétien's son, Michel at Pluridesign.
The stunning revelations came to light Thursday after the head of the federal sponsorship inquiry, Mr. Justice John Gomery, lifted a publication ban that had been earlier imposed on Brault's testimony.
The payment scheme was allegedly used by high-ranking Liberals in 1998, 1999 and 2000, the inquiry was told. The rule of thumb, testified Brault, was that 10 per cent of the 12 per cent commission fees he charged to manage sponsorship projects, would be transferred to the cash-strapped party. According to Brault, the deal applied to projects to promote the government of Canada at events organized by Le Groupe Polygone Editeurs and Expour.
"So…you sent back 10 per cent of the 12 per cent, or 1.2 per cent of your commissions?" questioned lead counsel Bernard Roy.
"That's it. That was the base. It was the minimum," replied Brault without hesitation.
The inquiry sifted through 400 boxes of documents provided by Brault in an effort to put the pieces of the puzzle together. Brault seemed well prepared and relaxed. He explained that fake invoices for "professional fees" were produced by Corriveau to mask these irregular transactions. All donations to federal political parties must be registered through Elections Canada.
Jacques Corriveau
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Brault agreed to pay Corriveau $425,000 over three years for services that "were never provided."
Asked why he accepted such a deal, Brault replied that he was overwhelmed with constant demands for more money and cash donations by party officials.
"The demands came from all directions and I was trying to control the demands as best I could," he told the inquiry.
Brault hinted that he got caught in a web of deceit. He said he didn't realize that there were strings attached to the generous sponsorship contracts awarded by Public Works through his connections with high-ranking Liberals.
"And I didn't ask any questions," he said. "It was never mentioned to me that there would be IOUs attached to these contracts," he recalled.
Brault is facing fraud charges in relation to the $250-million sponsorship program. According to the Auditor General of Canada, $100 million disappeared. His trial is slated to start June 6.
After the 1998-99 fiscal year, Brault said he was approached again by Corriveau who made new demands on him for more donations to the party.
"I'm not an endless bank," Brault sighed as he tried to explain how his frustration grew with the party's demands for more money.
Benoît Corbeil
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In the fall of 2000, Brault claims he was asked by a senior party official in Montreal, Benoît Corbeil, to dish out $400,000 cash the same day.
"I asked for several days. It was ridiculous. I was told there was a million dollar deficit and that everything would be OK because new contracts were on the way," Brault said.
In the end, Brault thinks he gave much less. "I think I gave $60,000," Brault said. "But it wasn't cash."
Gomery asked if Brault had any guarantee that the money promised to the Liberal Party of Canada, got there and didn't end up in "someone's pockets."
"Controls, as you can imagine, were delicate," Brault said. "In the case of 10 per cent or 12 per cent commissions, there was no way of verifying. I didn't see myself checking with headquarters."
Under cross-examination, Brault said he couldn't estimate how much money he gave to the Liberal Party of Canada.
"I have no idea. I'm sure we can establish a minimum but we can't establish a maximum because we don't have all the information."
Asked about fake invoices, Brault tersely replied that he had never produced any until the Liberal Party complicated his life.
The Liberal Party of Canada's lawyer, Doug Mitchell, was forced to change his line of questioning after Gomery ruled it was a "waste of time." Mitchell said the party's books were examined by a firm and every donation can be accounted for.
But Gomery said the party and Pluridesign may have had secret bank accounts. Gomery also said Brault had no way of knowing how much money actually flowed to the Liberal party. It's not up to Brault to answer questions about the party's financial records, the judge said.
"I think that the person to question, is the next person in the chain of events, it's Mr. Corriveau," Gomery said, thanking Brault for his five and a half day testimony.
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Christina Lawand reports for CBC-TV on Brault's testimony (Runs 3:30)
Gilles Duceppe's response (RealVideo runs 5:59)
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