Ad exec defends sponsorship commissions
The former president of Groupe Everest told a parliamentary committee investigating the sponsorship scandal that the ad agency followed appropriate guidelines and co-operated fully with auditors.
"All the work was done in a transparent manner," said Claude Boulay Monday. "No public funds were misappropriated."
In February, the auditor general's report discovered that Groupe Everest, together with Groupaction and Lafleur Communication Marketing, kept $1.3 million of $3 million in government funding earmarked for sponsorship of the RCMP's 125th anniversary celebrations in 1998-1999.
Boulay told the committee that his company had fully co-operated with various audits and provided more than 700 files to be examined by a quick-response team of investigators.
- IN DEPTH: Sponsorship Scandal
Two ad agency executives expected to testify Monday did not show.
Jean Brault, president of Groupaction Marketing said his doctor preferred he not testify before the committee and Gilles-André Gosselin of Gosselin Communication could not be tracked down to request that he appear before the committee.
The February audit showed that Groupe Everest, along with Lafleur, Groupaction and Gosselin, received $440,000 in commissions related to the government's $5-million sponsorship of a television series about Maurice Richard.
The report claimed the firms did not sign contracts nor apparently, did they do any work.
Not so said Boulay Monday. He maintained that his company delivered products in accordance with contract rules based on a pre-established commission rate.
"One hundred per cent of all the money that went through [us] ended where the money was destined," said Boulay.
Boulay also confirmed that he and his family had donated $94,573.46 to the federal Liberal party and to the Progressive Conservative party as well.
Boulay is known to have close ties with the previous Liberal cabinet, hosting ministers at his chalet in the Eastern Townships.
Former public works minister Don Boudria was demoted in May 2002 after it was revealed that he spent a weekend skiing there with Boulay.
Former immigration minister Denis Coderre came under fire the same month after admitting having stayed at Boulay's condo in 1997.
Guité to testify
On Thursday the committee is expected to hear from Chuck Guité the former public works official in charge of the program.
MPs will be particularly interested in Guité's dealings with former public works minister Alfonso Gagliano who was minister for most of the time that the sponsorship program was in operation.
During his first appearance before the committee two years ago, Guité refused to discuss contacts with the minister, citing a confidentiality obligation. But the government has since lifted that obligation, clearing the way for Guité to be more forthcoming.