March 10, 2005
Ottawa to sue Ad Firms, says Radio-Canada
The French service of the CBC is reporting Ottawa will launch a $39-million law suit in an attempt to recover funds from four Quebec advertising firms that made millions as a result of AdScam.
According to Radio-Canada, the federal government will file the suit tomorrow, targeting advertising agencies Lafleur Communications, Groupaction, Groupe Everest and Groupe Polygone, as well as the firms' principal owners. Each of the companies saw massive windfalls as a result of Ottawa's "Sponsorship Program." The program's poor accounting and accountability prompted one of the most scathing Auditor-General report in history, a Public Inquiry, and cost Paul Martin's Liberal Party their Parliamentary Majority in last Spring's election.
News of the suit comes as heads of the advertising firms in question have been testifying before the Public Inquiry into AdScam. Each has struggled to explain their billing practices and some have had to admit to having wasted taxpayer money. Some of those implicated in the scandal are also facing criminal charges.
Further Reading:
Commandites: Ottawa veut récupérer l'argent [English Translation] (Radio-Canada)
Posted by maxthecat at March 10, 2005 09:36 PM
http://www.maxsmewsings.com/mt/archives/2005/03/ottawa_to_sue_ad_firms_says_radiocanada.php