Public Works and Government Services Canada

Public Works and Government Services Canada

November 01, 2005 12:44 ET

NEW NAMES ADDED TO THE CLAIM FOR THE RECOVERY OF FUNDS

Attention: Assignment Editor, Business/Financial Editor, Media Editor, News Editor, Government/Political Affairs Editor GATINEAU, QUEBEC--(CCNMatthews - Nov. 1, 2005) - The Government of Canada announced today that it has added 12 new defendants and $12.9 M to its civil suit to recover funds improperly received through the now cancelled sponsorship program.

As a result, the Government is now claiming a revised total amount of $57M against 28 firms and individuals. This amount does not include the $1.6M that has already been recovered through settlement agreements.

The 12 individuals and companies being added to the claim are:
· Publicité Dézert Inc.
· Eric Lafleur
· Pluridesign Canada Inc.
· Jacques Corriveau
· Andrée Côté Gosselin
· CPPC - Centre de placement de Professionnels en communication Inc.
· Communications Art Tellier Inc.
· Benoît Renaud
· Sensas (G.E.C.M.)
· Everest Estrie Publicité (G.E.C.M.) Inc.
· Everest Commandites (G.E.C.M.) Inc.
· Everest Publicité Promotions (G.E.C.M.) Inc.

"Following an examination of the facts, the Government is satisfied that there was evidence of fraudulently obtained funds by these sub-contractors," said the Honourable Scott Brison, Minister of Public Works and Government Services. "That's why we are adding these names to the claims we have already made against a number of communication agencies and individuals."

The Government is studying the Gomery report and if warranted will further amend its Claim or add additional defendants as a result. It will be for the court to assess the extent of each defendant's liability.

"This amended claim is a direct result of the federal government's determination to recover misused sponsorship funds," added Minister Brison. "The Government of Canada will continue to demonstrate respect for hard earned tax dollars."

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

Backgrounder

On March 11, 2005, the Government of Canada filed a statement of claim in Quebec Superior Court against a total of 19 defendants (firms and individuals) for $40.8M.

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 full payment of $1.6M was 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. (formerly Publicité Martin) and recovered $50,000. The Government of Canada will continue to seek recovery from Jacques Paradis for the remainder of the funds improperly obtained ($48K).

On September 30, 2005, the original claim filed on March 11, was amended based on new evidence introduced before the Gomery Commission. The amended claim:

· refined the amounts previously claimed ($40.8M);
· removed claims that had been settled with three defendants (Paul Coffin, Communication Coffin and Groupe OSL Inc.), and;
· added new amounts ($7.8M) claimed from 13 of the original defendants. 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.

The Government will review the Gomery report on Fact Findings and any other additional evidence that may be revealed and will amend its Claim should the evidence fully support its case. IN: FINANCE, JUSTICE, MEDIA, POLITICS

Contact Information

  • Mario Baril
    Primary Phone: 819-956-2315