OTTAWA — Justice John Gomery says former Prime Minister Jean Chretien and his closest advisers must shoulder most of the responsibility for the sponsorship spending fiasco, which Gomery describes as "a story of greed, venality and misconduct."

But Gomery "exonerates" Prime Minister Paul Martin and other members of Chretien's Quebec cabinet, saying they didn't know about the program because it was shrouded by "a veil of secrecy."

In his three-volume report, Gomery describes a system of kickbacks and illegal contributions that funnelled millions of dollars to the federal Liberal Party in Quebec.

"The language, the tone of the report is almost biblical, in the sense of the moral judgment Gomery makes," said CTV's chief parliamentary correspondent Craig Oliver.

Gomery characterizes Chretien as the architect of the program and his chief of staff, Jean Pelletier, as the man who implemented it. Chretien waited a mere few hours before rejecting the findings of the Gomery report as biased and announced he will challenge its findings in Federal Court. (See related story: Chretien to challenge Gomery report in court)

But it was Jacques Corriveau, a close friend of Chretien's and a former vice-president of the Liberal Party in Quebec, who organized what Gomery described as a "complex web" of transactions that involved "kickbacks and illegal contributions" to the Liberal Party of Canada.

Oliver said Gomery makes clear that Corriveau was the captain of the "elaborate kickback scheme."

Gomery said that the public trust "was subverted and betrayed, and Canadians were outraged, not only because public funds were wasted and misappropriated, but also because no one was held responsible for his misconduct."

Gomery notes there is no evidence that Chretien or Pelletier was involved in Corriveau's kickback scheme. "Mr. Corriveau's wrongdoing entitles both Mr. Pelletier and Mr. Chretien to be exonerated from blame for Mr. Corriveau's misconduct."

But Gomery goes on to say that both Chretien and Pelletier are to blamed for sins of omission that created a "culture of entitlement" that opened the doors for unscrupulous individuals to misspend millions of tax dollars.

Gomery on Chretien

He said Chretien "is accountable for the defective manner in which the Sponsorship Program and initiatives were implemented."

As for Pelletier, Gomery said he "failed to take the most elementary precautions against mismanagement."

Gomery said Chretien, "is directly responsible for errors committed by Mr. Pelletier (and) he must share the blame for the mismanagement that ensued."

Gomery describes Pelletier as Chretien's "closest collaborator."

"Mr. Chretien was also personally responsible for the actions or the inaction of Mr. Pelletier and other … staff in his office," Gomery said.

Oliver called Gomery's remarks about Chretien "devastating." He said while Gomery absolves Chretien of direct blame in terms of the running of the program, the judge does so "with the most backhanded qualifications possible."

Gomery on Martin

In a section sure to be seized on by Martin as he tries to control any public relations fallout from the report, Justice Gomery writes that "Martin … is entitled, like other ministers in the Quebec caucus, to be exonerated from any blame for carelessness or misconduct."

Gomery also praises Ralph Goodale for quickly shutting down the sponsorship program when he was appointed minister of Public Works. Goodale became Finance Minister when Martin became Prime Minister.

While Justice Gomery takes care at several points in his fact-finding report to note that the mandate he was given does not allow him to make findings of criminal or civil liability, he assigns responsibility for what he described "as a depressing story of greed, venality and misconduct all of which contributed to the loss and misuse of huge amounts of money at the expense of Canadian taxpayers."

Chretien, Pelletier, Corriveau and former public works minister Alfonso Gagliano are singled out by Gomery as bearing the chief responsibility for the scandal.

"Jacques Corriveau was the central figure in an elaborate kickback scheme by which he enriched himself personally and provided funds and benefits to the (Liberal Party of Canada in Quebec)," Gomery said.

During his testimony in front of Gomery, Corriveau claimed that his memory of some events and meetings was imperfect, a result, Corriveau said, of the effects of anesthesia he received for some surgery in 2004. "The Commission remains skeptical about his explanation," Gomery said.

Not only did Gomery assign significant responsibility to Gagliano, the judge also cast doubt on the accuracy and truthfulness of much of Gagliano's testimony to the commission.

Gomery on Gagliano

For example, Gomery wrote that he has reservations about the truthfulness of some of the testimony of Chuck Guite -- the mid-level public servant who ran the sponsorship program and who has been charged with fraud.

Gomery said he found Guite's testimony about his meetings with Pelletier and Gagliano to be credible and that he is inclined to take Guite's word over Gagliano's about meetings between those two men.

"The evidence is overwhelming that Mr. Gagliano was a hands-on manager who took a great interest in the Sponsorship Program and an active part in its direction," Gomery said. "He is reluctant to accept responsibility for the errors committed in the course of that administration and the political interference which his decision-making constituted."

Nonetheless, Gomery says the ultimate political responsibility for the sponsorship scandal rests squarely with the Jean Chretien and senior officials in the Prime Minister's Office.

"Since Mr. Chretien chose to run the Program from his own office, and to have his own … staff take charge of its direction, he is accountable for the defective manner in which the Sponsorship Program and initiatives were implemented."

Gomery assigned responsibility to other individuals and organizations.

For example, the federal Liberal Party organization in Quebec drew Gomery's censure. "(It) cannot escape responsibility for the misconduct of its officers and representatives."

What's next

In a press conference following the tabling of the report, Gomery outlined what the public could expect in the second phase of his report, expected to be completed at the end of December for publication Feb. 1.

"Work on this second phase is already well advanced," said Gomery.

Accompanied by members of a special advisory committee made up of "distinguished Canadians," including those with political and public administration backgrounds, academics, and a retired judge, Gomery said he has visited five cities -- Moncton, Quebec City, Edmonton, Toronto and Vancouver -- to help him to formulate his recommendations.

Gomery said the different perspectives and information he gleaned from each region has helped him and his committee formulate recommendations for his next report.

"I can tell you that it will deal, first of all, with problems of ministerial responsibility and accountability at all levels of government, and with the need for transparency in government," said Gomery.