Canadian Military Kickbacks
Auditor General Criticizes Military Ethics
Dateline: 12/04/99
Drivers of Canadian military vehicles have been taking illegal kickbacks from service-station operators in two Canadian provinces, according to the Auditor General of Canada. Spot checks by the Auditor General's office showed the scheme involved both civilian and uniformed personnel at 18 armed forces bases.
The November 1999 Annual Report from the Auditor General says that more than 800 credit-card gas purchases for the Department of National Defence (DND) over a period of two years were examined, and kickbacks were paid in about 80 percent. Apparently if the driver refused cash, the service-station operators reduced the price. The kickbacks were reported to the RCMP's fraud unit and to the military police.
Kickbacks, sometimes called "secret commissions" are illegal, and are covered by the Criminal Code, the National Defence Act and federal conflict of interest rules.
The Auditor-General's report also criticizes the DND for not fully implementing its ethics program. The ethics program was introduced in the aftermath of the Somalia scandal, but the Auditor General says some key components are still not in place, and "there is a lack of commitment to the program."
Art Eggleton, Minister of National Defence, said that the military police started an investigation into the alleged gas kickbacks in April and "the investigation is still open." No charges have been laid yet. The defence department is also doing a review to see if it has adequate controls in place. The Minister claimed that the Defence Ethics Program is "fully implemented throughout the Department" and that DND is a leader in the federal government in implementing an ethics program. He added that orders have been re-issued to ensure that everyone knows that ethical standards are a high priority.
More on Military Ethics in Canada
- Defence Minister's Response to Auditor General Report
- DND Backgrounder on Defence Ethics
- Defence Ethics Program
