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Auditor General to investigate
Groupaction contracts

OTTAWA - (Web posted March 19, 2002 @ 5:30 p.m.) - Public Works Minister Don Boudria has asked the Auditor General of Canada to conduct an audit of two contracts Ottawa awarded to Groupaction Inc. 

In February 1999 Ottawa paid the company about $550,000 for a report on how government could enhance its visibility. In October the company supplied a report, for which it was paid about $575,000, that studied the impact of federal government sponsorships.

Last week the government admitted it couldn't find the February report, and company-supplied documents Boudria produced to prove it existed resembled the October report.

"Officials at Communication Canada have now concluded that a 1999 report tabled in the House of Commons on Wednesday, March 13, 2002, and the documents made available on Thursday, March 14, 2002 are substantially the same," Boudria said in a prepared statement on Tuesday.

So Auditor General Shelia Fraser's task seems straightforward: determine whether two different documents submitted in 1999 are essentially the same report.

Groupaction, however, have been prominent financial backers of the Liberal Party, and they have received government contracts worth millions of dollars from Ottawa in recent years.

That had Canadian Alliance Leader John Reynolds suggesting in the House of Commons that the contracts were nothing more than a "kick-back scheme."

Outside the House of Commons he said the RCMP should get involved to do a complete investigation.

It's a possibility Boudria did not rule out completely.

Boudria said if the auditor general determines the reports are the same, he will ask for taxpayers money back from Groupaction.

"I will then refer the matter to the RCMP for investigation if necessary," he said.

Also during Question Period, several MPs said former Public Works Minister Alfonso Gagliano's appointment as ambassador to Denmark should be suspended.

Gagliano resigned from politics after he was dropped from cabinet in January. 

At the time the former Quebec MP, who was Public Works minister when the reports were awarded, had been mired in controversy over allegations he exerted undue political interference in the operations of a Crown Corporation.

But Boudria defended his former cabinet colleague in the House of Commons.

"My predecessor did a very good job," said Boudria.

The public works minister said he would table the auditor general's report in the House of Commons once it's complete.

 

Read these PoliticsWatch stories
arrow-trans.gif (111 bytes) CA call for investigation  into missing report 
arrow-trans.gif (111 bytes) Boudria hopes someone will find lost report 


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