February 12, 2004ImmediateSince the release of the troubling results of the Auditor General's investigation on Tuesday, our Government has very clearly expressed how it judges unacceptable actions which cannot be tolerated. Canadians are outraged by the cases of mismanagement and breach of trust that have been revealed. As Prime Minister, I share that feeling wholeheartedly. Canadians need to know that this government takes full responsibility for resolving this matter. We will not turn our backs on our responsibility to find out what happened and ensure it never happens again.As a member of Cabinet, I take personal responsibility for dealing with this matter. I am politically accountable for my actions and Cabinet Ministers are ultimately responsible for the actions that we manage on the public's behalf. But we rely on the fact that people will act with integrity and expect that oversight mechanisms will identify when people do not. And I am sick and deeply, deeply troubled about what happened. I profoundly regret that something as objectionable as this occurred and for the unconscionable disregard that some in Government, bureaucratic and political, showed for the law and for appropriate behaviour. Let me also repeat something that I said yesterday: the end does not justify the means. As noble a mission and as absolutely crucial as the unity of our country, it does not justify the disregard for public funds or the wilful breaking of the rules and law. It just doesn't. It doesn't matter how much or how little was spent. The point's the same, that it cannot be justified.Now there are a number of questions that have been posed. A number of questions have been raised which I feel deserve an answer, because it is important that as Prime Minister I be very clear about what I know and what I did not know. It's very important for public confidence that as Prime Minister I be clear about the degree of my knowledge of this matter.First, people have asked me what I as a former Finance Minister knew of the matter and when. It's a fair question. My reply is as follows. The Sponsorship Program began in 1997. We all understood what it was about. Questions concerning management, however, began to be raised in the year 2000 when an internal audit was conducted by Public Works and was made public that fall.Now at that time the department put in place an action plan to correct what it identified as administrative problems. In 2002, the then Deputy Minister said before a parliamentary committee that they detected no sign of dishonesty or fraud at that time. However, in the same year, 2002, the auditor general reported on three files involving Groupaction and found very serious problems.That is when I began to understand that what had occurred went far beyond administrative failures and involved possible criminal conduct. But even then no one understood the full scope of what was involved until the Auditor General's report came out recently.Now I know as well that some can't understand how as a Quebec minister I could not have known about the conduct of this program. Well, the fact is that very few ministers, Quebec ministers did. Furthermore, it is no secret that I did not have an easy relationship with those around the former Prime Minister. It stemmed primarily from the fact that we held different views on Quebec. A number of you have written of those views and that I wanted to succeed him. This did not get in the way of a successful, professional collaboration but it did obviously affect personal and political relationships. In short, my advice was not routinely sought on issues related to Quebec.Before I finish and take your questions, I want to stress another of our concerns, which is whether this Government is prepared to do everything that was possible to remedy the problem. I am deeply troubled by what I have seen concerning the role played by crown corporations in this matter.Crown corporations operate at arm's length from the Government with their own boards, their own management teams. In respect of that separation, I've asked the Treasury Board President to conduct a review of the adequacy of the response by crown corporations to the AG's report. Furthermore, I want it understood that crown corporations are expected and will respect the Auditor General's findings. They are expected to appear when called before the public inquiry. They are expected to appear if they are called before the Public Accounts Committee of the House of Commons and they are expected to cooperate with the Treasury Board President's work. Simply put, they will answer for their actions.I note that there are also reports today that Mr. Gagliano will be offered a compensation package for his time as our Ambassador to Copenhagen. Those reports are wrong.Let me just say, raise a couple of issues. One was whether or not people knew that public funds were being used to fight for unity across the country and combat the separatist idea in Quebec. Yes, people knew that was happening. The second issue, however, is whether people knew that others were stealing money, that they were not doing the work that they said they were doing, whether they were enriching themselves. And let me tell you that anybody who knew about that and did nothing should resign immediately. Anyone who knows anything that could help shed light in this area - in the government, in the caucus or anywhere in the country, corporations or in the Liberal Party - should come forward and not wait to be compelled to do so as they will.In closing, let me just simply say that I believe that what occurred in the Sponsorship Program, the broken rules, the abuse of taxpayers' money and the breach of public trust is inexcusable. Let me assure you that those who are responsible, regardless of who they are, where they work or whatever they may have worked in the past, will face the full consequences of their actions. -30-Video of the statement is available at: http://www.pm.gc.ca/eng/news.asp?id=63
