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Ban partly lifted, sponsorship details revealed

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CTV News: Jed Kahane outlines Brault's testimony
CTV News: Rosemary Thompson on the players in Brault's story
CTV News: Robert Fife on the political fallout
CTV News: Craig Oliver on the explosive day in the House
CFCF News: Correspondents with reaction from Quebec
CTV Newsnet: Mike Duffy speaks with Jean Chretien's lawyer Peter Doody
CTV Newsnet: Mike Duffy speaks with Jack Layton, Darrell Bricker
CTV Newsnet: Mike Duffy speaks with Jean Lapierre
CTV Newsnet Live: Conservative Deputy Leader Peter MacKay responds to testimony

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CTV.ca News Staff

Date: Thu. Apr. 7 2005 11:11 PM ET

The publication ban on testimony at the Gomery inquiry has been partially lifted and damaging allegations made by ad executive Jean Brault can now be reported.

"I'm of the opinion that almost all of Mr. Brault's testimony and the documentation filed as part of his evidence, have little to do with the accusations of fraud that he is facing. It is in the public interest that this evidence, with only a few exceptions, be made available to the public," Justice John Gomery said.

For now, these are just allegations that have not been proven in court.

Brault claimed in his six days of testimony that he systematically kicked back huge amounts of taxpayer money to the federal Liberal party, a deception he claims involved senior Liberal organizers and people close to former prime minister Jean Chretien.

His testimony alleged secret meetings, phoney paper trails, unmarked envelopes stuffed with cash and bogus billings. Other details from his testimony:

  • He said there were phoney employees on the payroll at the ad firm Groupaction.
  • Brault said there was more than $1 million in kickbacks to the Liberal Party of Canada.
  • His reward, he claims, was $172 million in government business for his firm.

It was always the same story, he told the commission: The Liberal Party needed money. If you wanted the business, you had to pay.

Brault says most of the kickbacks were cash; that's the way his Liberal handlers wanted it, he said, so it couldn't be traced.

On one occasion, Brault says he handed $25,000 in cash to Joseph Morselli, a top organizer for former public works minister Alfonso Gagliano.

Brault wanted the bidding for some ad contracts with the Justice Department delayed. He says Morselli told him the delay would cost $100,000.

The first payment was $25,000, dropped off at a fundraiser for Gagliano, at a restaurant in Montreal's east end.

Brault claims he also put at least five Liberal party workers on Groupaction's payroll. They were paid with sponsorship money to do work for the party.

Other Liberals allegedly got cheques too, disguised as consulting fees, for doing nothing. One of them was former prime minister Jean Chretien's brother, Gaby.

Brault claims Chretien handed $4,000 to a Liberal candidate.

Brault says Liberal fundraiser Alain Renaud got $63,000, also for doing nothing. It was clearly, Brault says, a donation to the Liberal Party.

And then, there's Jacques Corriveau, a confidant of Chretien. Brault paid Corriveau's firm nearly $500,000, for no work at all. He says Corriveau wanted the money for the Liberal Party.

Under cross-examination, a lawyer for the Liberals suggested Brault didn't really know if some of his payments ended up in Liberal coffers. Brault agreed with that, saying "You're right."

All this, and Brault didn't even talk about the six contracts involved in his fraud charges. His upcoming criminal trial, to start in June, could reveal further allegations of wrongdoing, and perhaps more information about the people and the party Brault claims he spent so much of his time helping.

Opposition reaction

Thunderous reaction from the Opposition came minutes after Gomery lifted the ban. 

Conservative Deputy Leader Peter MacKay said in the House of Commons there's now evidence that Liberals are involved in a "criminal conspiracy" on a scale never before seen in Canada.

Minutes later during question period, MacKay said the testimony shows Paul Martin's office, while Martin was finance minister, was involved in the sponsorship program.

Deputy Prime Minister Anne McLellan called the allegations against Martin "absolutely untrue," while Public Works Minister Scott Brison repeatedly described Brault's testimony as "allegations."

He said the facts should only be judged when Gomery tables his report in November.

"Repeating (allegations) over and over and over again does not transform them into facts.''

Opposition Leader Stephen Harper, meanwhile, will be gauging the public's reaction to details of the testimony like a hawk, to determine whether the accusations warrant bringing down the minority Liberal government.

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