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Where the money went - Wednesday, February 11, 2004 at 10:32

PUBLICATION:  Toronto Star
DATE:  2004.02.11
SECTION:  NEWS
PAGE:  A06

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Where the money went
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The RCMP used $107,268 in sponsorship funds to buy six horses and two trailers. And more than $150,000 was used to hire two co-ordinators for the force's 125th anniversary and $82,436 in extra cash went toward "departmental expenditures" in Quebec. "We find this an inappropriate use of sponsorship money," the report concluded.

The government paid $5,600 to put an unidentified MP's name on a mural at a Quebec college. The fee included $600 commission to a communications agency. "In this case, the government of Canada did not receive any visibility for the $5,600 it paid, but the member of Parliament did," the report said.

Public Works signed a $330,000 advertising contract in December, 1996, with Groupaction to develop a communications strategy related to new firearms legislation. "There was no evidence that (Public Works) received anything for the money it paid. The contract said this was a Justice Canada project but justice officials have stated that they had not requested it and received none of the services outlined in it," the report says.

In 1998-99, a Montreal soccer team got $150,000 in sponsorship funds for its indoor season. Yet the following year, a similar proposal from an Edmonton soccer club was rejected "on the grounds that no funds were available." When an MP complained, the Edmonton team got $30,000 and another $30,000 was doled out to the Montreal team.

The communications branch of Public Works agreed to give $1.5 million to the Old Port of Montreal to buy a giant screen for its Science Centre. But instead of giving the money directly to the port, Public Works funnelled the cash through Lafleur Marketing and Media/ I.D.A. Vision, which took $225,000 for facilitating the transfer.

Tour Cyclist Trans Canada was given $1.4 million although the auditor could find no letter of request or application for the money. The contract was later amended, adding a further $400,000 and "associated commissions" even though the event had taken place. "We found no documented rationale for the additional amount," the report said.Some examples of misspending highlighted in the report: