Canada -   

1

Chretien friend got $6.7M in sponsorship funds

Viewer

CTV News Video

Luc Lemay testifies before the Gomery commission
remote02_gomery

A A |  Email ThisEmail  | Print Facebook   

Date: Wed. Apr. 13 2005 6:25 AM ET

A close friend of former prime minister Jean Chretien earned $6.7 million in sponsorship-related income mainly from hunting and fishing shows, documents tabled at the sponsorship inquiry say.

Jacques Corriveau's Pluri Design firm took in the whopping cut which was related to a series of trade shows run by promoter Luc Lemay, who is targeted by a federal lawsuit to recoup scandal-tainted sponsorship funds.

The evidence that a member of Chretien's entourage grew rich from the disgraced program only adds to the growing corruption scandal which threatens to bring down the minority Liberal government.

Ad man Jean Brault has implicated Corriveau and Lemay in a scheme that allegedly used Brault's Groupaction firm to secretly funnel at least $1.1 million to the Liberal party's Quebec wing.

Brault says Corriveau pressed him to make huge financial contributions, while one of Lemay's firms allegedly paid Brault $2.3 million in bogus commissions to offset the party's financial demands.

Corriveau's $6.7 million in honourariums and professional services represent more than 18 per cent of Lemay's sponsorship income from the shows between 1997 and 2002.

More damaging testimony at the inquiry Tuesday indicated Lemay's relationship with Corriveau paid off handsomely in the form of a surprise grant for Lemay's first big show in 1997.

Lemay, president of the firms Groupe Polygone and Expour, testified the cash gift from Ottawa came not long after the two began working together to expand Lemay's existing series of trade shows.

"At a certain point he said, `Listen, I got you about $400,000','' recalled Lemay.

Asked by lead inquiry counsel Bernard Roy where Corriveau said he received the money, Lemay replied: "It came from Ottawa.''

Gomery was then moved to interject: "You won the lottery. Because this essentially fell from the sky.''

The promoter, alluding to the resounding success of the show, agreed: "We were very happy.''

He said he was eventually instructed to bill the government for $450,000 instead of the original $400,000. He said he wasn't told why the subsidy was hiked by $50,000.

Lemay's sponsorship business first made national headlines following revelations that he took in $330,000 in taxpayer money for a hunting and fishing show in Quebec City that never happened.

Brault, president of Groupaction Marketing, said Lemay was also strongarmed into donating cash to the Liberals, although Lemay has yet to confirm the allegation.

Earlier on Tuesday, a former Groupaction controller testified he gave Brault $15,000 in early 1997, the same time as his boss has said he gave an equal sum in a secret donation to the Liberals.

A cheque register and testimony by ex-controller Bernard Michaud backed Brault's claim that he covertly funnelled secret cash payments to the party.

Michaud told the inquiry he handed over $15,000 in cash to his boss in April 1997 -- around the same period Brault has said he gave $15,000 in cash to a party official.

The cheque register tabled at the inquiry showed a $15,000 cheque issued in Michaud's name on April 28, 1997.

Brault told the inquiry last month he asked Michaud to withdraw the sum for the first instalment of a $100,000 cash request by top Liberal brass in March or April 1997.

"Jean Brault (said he) needed $15,000 quickly and he didn't have the time to go to the bank,'' recalled Michaud.

Michaud said he told his boss, "`Jean, $15,000 can't be found quickly'. So I told him, `We'll make out a cheque in my name in advance and we'll arrange it later.'

"I made out a cheque in my name and I cashed it ... and gave it to Jean Brault.''

Michaud said he was never told what the money was for.

Brault said the $15,000 payment to the Liberals involving Michaud was made under the leadership of Benoit Corbeil, who ran the party's Quebec wing in the late 1990s.

The ad man said he bargained the initial $100,000 request down to $50,000, which he said he delivered in instalments of $15,000 and $35,000.

Brault said Corbeil thanked him for his donation and said Groupaction would be compensated -- a pledge Brault says was a tip that more sponsorship contracts were to come his way.

Share with your social Network:

Facebook DIGG Newsvine Delicious Twitter StumbeUpon Reddit Yahoo! Buzz

 

Advertisement

Contest

Today's Canada Stories

CP Rail

Back-to-work law puts CP Rail back on track

More   3 Comments 3