Dateline: 07/05/02
Moratorium on Sponsorship Program Lifted
In an attempt to clean up the scandal-ridden Canadian Sponsorship Program, Public Works Minister Ralph Goodale has cut out middlemen ad agencies and communications firms. Lifting the moratorium he placed on the program May 27, 2002, Goodale added measures to ensure the Sponsorship Program functions properly for the rest of the fiscal year, and he says in a news release he is confident sponsorships can be delivered in a way that "ensures transparency, accountability and full value for taxpayers' dollars." He also promised ongoing monitoring to see those standards are met.
Sponsorship Program Problems
The Sponsorship Program spends about $40 million a year to support cultural, sporting and community organizations and activities across Canada, mainly to increase the visibility of the Canadian federal government.
An internal audit of the Sponsorship Program two years ago showed there were problems with the program. The May 2002 special audit of the Auditor General of Canada, Sheila Fraser, made it clear to the public just how serious those problems were. In auditing three contracts under the program, the Auditor General's Office found that "senior public servants responsible for managing the contracts demonstrated an appalling disregard for the Financial Administration Act" and other government contracting regulations and policies.
Several Sponsorship Program contracts have since been referred to the RCMP for investigation. Opposition parties have been pounding the Liberal government for months with accusations of corruption due to the close ties of Liberal cabinet ministers with marketing and communications firms involved in the program.
Cutting the Middlemen From the Sponsorship Program
Instead of using outside marketing and advertising firms, government officials in Communication Canada, the internal federal government agency which handles federal communications and advertising, will negotiate sponsorship plans directly with event organizers and administer the program themselves.
Administrative Cleanup of the Sponsorship Program
Additional measures to clean up the administration of the Sponsorship Program include:
- event organizers will receive half of the expected sponsorship on successful completion of a sponsorship plan. The remaining half will be paid once Communication Canada is satisfied that the plan was performed as promised.
- Consulting and Audit Canada, a Public Works agency, will monitor the program.
- information on the program will be posted on the Communication Canada Web site. Information on the events sponsored for the current fiscal year will also be posted.
