Wednesday, July 06, 2005

565 people donate $3.9 million to the Libs and get $7.4 million in return

Fraser Institute

Executive Summary: The numbers of people and amounts of money involved in the Gomery inquiry are larger than previously known. Problems with federal government sponsorship and advertising programs can be understood using an economic theory of incentives and institutional structure.

This study finds that at least 565 organizations and individuals are identified in reports and testimony related to the Gomery inquiry. The original 2003 Auditor General sponsorship and advertising report cited only 71 organizations. The activities under investigation are therefore quite widespread.

The people identified in these reports and testimony are politicians and bureaucrats (government insiders), and political party members and business people(government outsiders). This paper finds that almost all of them have an exclusive financial link to the Liberal Party of Canada (hereafter referred to as the Liberal party). They donated at least 40 times more to the Liberal party than to all of the other main political parties combined from 1993 to 2003.

This paper finds that these individuals privately donated at least $3.9 million to the Liberal party and received at least $7.4 million in private payments from the Liberal party from 1993 to 2003. The Gomery inquiry forensic report found only $2.5 million in Liberal party donations.

The same people also received public (tax funded) payments from the federal government, and this was the underlying incentive that encouraged inappropriate behaviour and relationships.

But I'm sure that there was no dirty money involved and if there was the Liberals will refund the tax-payers, blah blah blah /Scott Brison Impersonation

UPDATE: Captain's Quarters

I haven't watched the TV news or listened to the radio for a couple days, but glancing around at a few Canadian news sites, this report doesn't seem to be getting any play at all.

Updade: Stephen Taylor

Particularly striking were donations made to the Liberal Party of Canada by the RCMP and by the Privy Council Office.

For the "privilege" of protecting the Prime Minister and other members of his campaign team during the 2000 campaign, the RCMP paid the Liberal Party $112,000 for seats accompanying the PM.

The Fraser Institute reports:

"It is an apparent conflict of interest for government agencies, especially those engaged in law enforcement, to pay a governing political party for services rendered during an election. This financial entanglement can impair perceptions of independence and due process that are essential to the proper functioning of those agencies." -- Fraser Institute report, July 2005

One would expect that the taxpayer would pay for the services of the RCMP to protect the Prime Minister. However, it is counter-intuitive that the RCMP (ie. the taxpayer) would pay a private organization (ie. the Liberal party) for work done by the federal law enforcement agency.

The Privy Council Office paid $44,000 to the Liberal Party for similar "services".