Canadian taxpayers are coming around to the hard reality that sponsorship funds stolen or misspent are unlikely to ever be recovered. According to the Gomery Inquiry, the total amount of money lost in the scandal totals $355-million. Of this amount, ad firms received roughly $150-million in fees and commissions to improve Canada's brand identity in Quebec after the 1995 referendum.

With great fanfare, Paul Martin's government has launched legal action to recoup $57-million wrongly paid to 28 firms and individuals. This will be a costly and lengthy process. Will corrupt firms caught in Ottawa's dragnet even have the financial resources to repay the money

The government has already recovered $1.6-million in settlement deals. Yet the Globe & Mail reported in September that the law firm overseeing the case on behalf of taxpayers billed Ottawa $1.9-million last year. The math is not very promising.

In an attempt to atone for its sins, the Liberal Party of Canada agreed to return $1.14-million to the public purse. It is hardly enough. Judge John Gomery found evidence of "an elaborate kickback scheme" that enriched both individuals and the political operations of the ruling party's Quebec wing. This money was used to influence Quebec voters in the 1997 and 2000 federal elections.

Returning this dirty money should not be overly taxing for the Liberals. Under Ottawa's new campaign financing laws, Canada's political parties are paid an annual subsidy of $1.75 per vote received in the recent election. This welfare program means the Grits will collect $8.7-million this year from taxpayers.

Worse is that few wrongdoers will ever see the inside of a jailhouse. The Gomery report validates the findings made by the Auditor-General and concludes the malfeasances were even worse than she suspected. Sheila Fraser was the first to inform Canadians that their public officials "broke just about every rule in the book" handing out contracts. Judge Gomery revealed this rot extended all the way to Jean Chrétien and the nation's highest political office - the Prime Minister's Office.

A total of four individuals have been charged, although the police investigation is ongoing. Paul Coffin remains the only individual convicted. After pleading guilty to 15 charges of fraud, Mr. Coffin somehow managed to avoid any jail time. For swindling Canadian taxpayers of $1.9-million, the court handed him a conditional sentence to be served in the community. Mr. Coffin has repaid $1-million to the federal government and will instruct business students on ethics, which is akin to asking the town drunk to tell kids to remain sober. (The Crown is appealing the laughably light sentence and, for now, his lecture series has been suspended.)

There is little in all this to reassure taxpayers.

Even the option suggested by many to launch a class action lawsuit against the Liberal Party or federal government will not work. By law in Canada, taxpayers have no binding contract with a political party or even individual politicians for that matter. The only hope for recourse is a long term one. Judge Gomery's second report - to be released on February 1 - will detail the institutional changes necessary to prevent future Adscams from happening.

None of it will be a surprise: whistleblower laws to protect civil servants; expanded oversight powers for the auditor-general; tough conflict of interest rules; less restrictive freedom of information laws to shine light on government activities; greater transparency for Crown corporations; a separation of political oversight from the administration of programs; and a greater role for backbench MPs to review and improve how tax money is spent. For more than a decade the Canadian Taxpayers Federation and other non-partisan advocacy groups have called for these changes.

Will the political fortitude finally be found to enact these reforms and improve oversight of our institutions Despite the promises suddenly coming from politicians, Canada remains a long way from having the accountability and transparency tools necessary to hold lawmakers and public officials to the high standards Canadians expect of them.