Public Works and Government Services Canada

Public Works and Government Services Canada

September 30, 2005 10:55 ET

GOVERNMENT ACTS TO RECOVER MORE SPONSORSHIP FUNDS

Attention: Assignment Editor, Business/Financial Editor, Media Editor, News Editor, Government/Political Affairs Editor GATINEAU, QUEBEC--(CCNMatthews - Sept. 30, 2005) - The Government of Canada announced today that it is seeking to recover an additional $7.8 million in its civil suit launched against defendants involved in the now cancelled sponsorship program.

This extra amount includes $4.3 million against Groupaction Marketing and Jean Brault, $1.9 million against Jean Lafleur, and smaller sums from other defendants previously named in the case.

"This amended claim is a direct result of the federal government's determination to recover misused sponsorship funds," said Scott Brison, Minister of Public Works and Government Services. "The Government of Canada will continue taking all necessary steps to safeguard Canadians' hard-earned tax dollars."

The original claim filed on March 11, 2005 was aimed at recovering $40.8 million from 19 defendants.

However there have also been adjustments to the original claim to:

· Remove claims that have been settled with three defendants (Paul Coffin, Communication Coffin and Groupe OSL Inc, the current owners of Publicité Martin);
· Refine existing claims in the wake of new information from the Gomery Commission.

As a result of the increased claim as well as the adjustments, the government is now seeking a revised total amount of $44.1 million.

The Government of Canada reached a settlement agreement on August 11, 2005 with two of the defendants, Paul Coffin and Communication Coffin. The Government of Canada is satisfied that a full payment of $1.6M has been received. This consists of a $1M cheque, previously paid federal income taxes and an amount withheld from Communication Coffin by the government.

On September 2, 2005, the Government also reached a second out-of-court settlement with Groupe OSL Inc. and recovered $50,000.

The Government is studying additional evidence and may further amend its Claim or add additional defendants as a result.

A copy of the Statement of Claim can be obtained from Quebec Superior Court in Montreal located at the Palais de justice, 1 Notre Dame East, Montreal, P.Q. The Statement of Claim will also be posted on the PWGSC's website once it is available in both official languages.

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For updates on any developments concerning the status of the financial recovery, consult the PWGSC web site at: http://www.tpsgc-pwgsc.gc.ca/sponsorship/text/2005-08-recovery-e.html

For more information, media may contact:

Renée David
Office of Minister Brison
Press Secretary
(819) 997-5421

Media Relations
Public Works and Government Services Canada
(819) 956-2315

Ce texte est également disponible en français.

PWGSC news releases are also available on our Internet site at:
www.pwgsc.gc.ca/comm/min/text/mediaroom-e.html
IN: ECONOMY, FINANCE, JUSTICE, MEDIA, POLITICS

Contact Information

  • Mario Baril
    Primary Phone: 819-956-2315