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Kroll Report


Grandinite blog points out that there are some interesting people running this taxpayer funded $1 million dollar Adscam damage control office for the Liberals:

Guy McKenzie - Was named last year by AG Sheila Fraser as someone who authorized sponsorship transactions involving departments and Crown corporations

Ursula Menke - Former inspector general of the Canadian Security Intelligence Service (CSIS) and former deputy commissioner of the Canadian Coast Guard . Also, she previously worked for Paul Martin in the Finance department as a superintendent of Financial Institutions. Ms. Menke has been providing ongoing advice to the PMO and Mr. Himelfarb in regard to the inquiry. She said the office was involved in providing all the required documents to the inquiry and has acted as a liaison for Judge Gomery.

So we have a former Finance/CSIS officer working for the PMO with the goal of minimizing the damage that the Gomery inquiry is revealing. This person is in charge for supplying all the required documents to Judge Gomery. And, we have McKenzie who has been implicated in Adscam by Fraser helping as well.

Check out Grandinite for more...

Update I:

In case you didnt realize, it has been revealed today that the Liberals are billing tax payers over $1 million dollars to handle the fallout of the Gomery commission. Incredible. So essentially we are paying the government's million bill so that we dont get mad at the fact that they stole our money. That makes alot of sense.

This Liberal Party press release says that since the Accountants said the money was 'purported' to be given to the Liberal party that it really wasn't in fact given to them and that it will be 'up to Gomery' confirm it. The Liberal party sure didn't wait very long to issue a denial. However, I guess when you pay over a million dollars to debunk fallout, those denials better be issued very quickly. So at the very least I guess we are getting our moneys worth in defending the Liberal party from ourselves.

Oh, one other note. Although the accountants revealed that they found over $100 million dollars more than expected, the Toronto Star website has a breaking story on their front page about a "rash of fireworks-related incidents across the GTA this holiday weekend." Now that is quality coverage.

A final note, why is it that the CBC was the first (and so far only) news corporation to have a copy of the Kroll report on their website? Also, the PDF document that I downloaded shows an error when you try to click on the "Appendices" or the "Schedules" sections (these are the best and most informative sections of any report from an Accountant). Anyways ill let you make your own inferences on that one.

Kroll Report:

Payments to the Liberal Party:


Total reported amount donated to the Liberal party is $768,536, but if you include Jean Brault’s unofficial donation of $1,763,587, the total is then $2,532,123 donated to the Liberal party of Canada. But of course, the Liberal party was quick to deny this.

Contract Management Irregularities:
-Billed more hours for professional services to PWGSC than were recorded in agency records for a specific event;
-Billed PWGSC for fees that were already paid by PWGSC via the AOR;
-Billed PWGSC based on approved estimated costs (a fixed fee) while the contract required billing based on approved hourly rates and actual hours incurred; and
-Billed costs incurred to PWGSC before a contract was in place.
-Charged 17.65% commission on work sub-contracted to related parties;
-Passed on to PWGSC a substantial mark-up on promotional items purchased from a related supplier;
-Billed sub-contractor labour costs at full agency contract labour rates instead of the actual cost plus 17.65%;
-Did not obtain competitive quotes for sub-contracted work in excess of $25,000;
-Charged a finder’s fee or commission to a sponsoree while collecting a commission from PWGSC for being the communication agency;


-Jacques Corriveau's company PluriDesign charged GroupAction $430,370 for services that could not be dicerned via documentation.
-The Finance department was responsible for 115.19 million of the sponsorship costs.
-From 1995-2002 Groupe Everest ‘earned’ $476.2 million dollars in revenues from Government of Canada related business (sponsorship).

One thing that is odd is that the Liberal party finances and its riding associations were not investigated.

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5/24/2005 03:25:00 PM

One word: Whitewash. Or is it two?    

5/24/2005 03:34:00 PM

I think its two words but only one wouldn't be accounted for.    

5/24/2005 03:56:00 PM

mkbraaten, I think you are going to be very busy these next few days with your accounting skills. I look foward to insightful analysis.    

5/24/2005 04:05:00 PM

The forensic accountants said the Finance Dept. was responsible for 115.19 million in sponsorship. Not Paul Martin's Finance Dept., Right?
Nah! If it was his Dept. he would know about it and tell us about it. Right? But he doesn't know about it, so it can't be his Dept.
ANON 11    

5/24/2005 06:12:00 PM

Guy McKenzie---
Ah yes, the fox now in charge of the hen house.    

5/24/2005 08:41:00 PM

Thank you Matt for your efforts and commitment to dependable reporting.

We all know that we cannot depend on 99.9 percent of the reporters in Canada to investigate and detail actual corruption.

Only the Bloggers care about Canada these days! Your website is living proof.

Unbelievable day!    

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