OTTAWA, ONTARIO, March 10, 2004 -- The Honourable Stephen Owen, Minister of Public Works and Government Services, today released the Terms of Reference of the Special Counsel for financial recovery, in response to the Auditor General's report examining past sponsorship and advertising activities.The Government has appointed Mr. André Gauthier as Special Counsel for financial recovery with a mandate to pursue all possible avenues, including civil litigation, to recover funds that were improperly received by certain parties involved in the delivery of the sponsorship program.In particular, the Special Counsel will be mandated to: review the 721 sponsorship files and all other relevant documentation to determine whether the Crown made overpayments to communication agencies or any other party and the amount of the overpayment; take action to recover any funds that may be payable to the Crown, if there is a reasonable chance of success; be appointed counsel of record for the Crown in court proceedings already instituted and will review the Gosselin file to determine if further recovery action is possible; act for the Crown in any action taken against the Crown by communication agencies or other parties arising out of the sponsorship files; advise the Government with respect to continuing to do business with firms named in the Auditor General's Report and in the development of criteria on which to base this decision; advise the Government on what adaptations and modifications can be made to procedures, policies and to the Financial Administration Act to facilitate and strengthen financial recovery processes; advise the Government should he consider that there are other potential sources for the recovery of funds; and perform such other duties related to the recovery of funds as the Attorney General may direct. The Special Counsel will be given access to all relevant documents within the control of Government and to all individuals and organizations that may have information relevant to the review. The Special Counsel will also be authorized to call expert witnesses such as forensic accountants."The appointment of the Special Counsel for financial recovery is an important demonstration of the government's commitment to set right past abuses," said Minister Owen. "Recovering lost funds is clearly something that Canadian taxpayers demand and deserve."On February 10, 2004, the Government of Canada announced a comprehensive set of measures - including the establishment of an independent commission of public inquiry - to investigate and report on the questions raised in the Auditor General's report of November 2003. The Honourable John H. Gomery, a judge of the Quebec Superior Court, was appointed to head the commission.TERMS OF REFERENCE FOR SPECIAL COUNSEL FOR FINANCIAL RECOVERYThe Special Counsel for Financial Recovery ("Special Counsel") will: review the 721 sponsorship files and all other relevant documentation to determine whether the Crown made overpayments to communication agencies or any other party and the amount of the overpayment; take action to recover any funds that may be payable to the Crown, if there is a reasonable chance of success; be appointed counsel of record for the Crown in court proceedings already instituted and will review the Gosselin file to determine if further recovery action is possible; act for the Crown in any action taken against the Crown by communication agencies or other parties arising out of the sponsorship files; advise the Government with respect to continuing to do business with firms named in the Auditor General's Report and in the development of criteria on which to base this decision; advise the Government on what adaptations and modifications can be made to procedures, policies and to the Financial Administration Act to facilitate and strengthen financial recovery processes; advise the Government should he consider that there are other potential sources for the recovery of funds; and perform such other duties related to the recovery of funds as the Attorney General may direct. In carrying out this mandate, the Special Counsel: will be given access to all relevant documents within the control of the Government and to all individuals and organizations within the control of Government who may have relevant information that could assist the Special Counsel; with respect to files where Crown Corporations are involved, will be assisted to the extent possible to obtain access to relevant documents; and will be authorized to engage experts such as forensic accountants, expert witnesses and others as may be required if the Special Counsel determines that it is necessary to do so. -30-For further information please contact:Office of Minister OwenAlastair MullinDirector of Communications(819) 997-5421Andre GauthierSpecial Counsel for Financial Recovery(514) 393-4580PWGSC News Releases are also available on our Internet site at www.pwgsc.gc.ca/text/generic/sub_infocentre_newsrel-e.html
