Oversight system is broken, and must be reformed - Now!

Ottawa - The Canadian Taxpayers Federation (CTF) reacted to the report tabled by Auditor-General Sheila Fraser this afternoon in the House of Commons. The report focuses on abuse of Ottawa's advertising and sponsorship program, and the fast-track purchase of two Challenger jets. In 2002, the auditor-general issued a preliminary report on the sponsorship program and asked the RCMP to investigate the misappropriation of tax dollars. The sponsorship program was cancelled in December shortly after Paul Martin became Prime Minister.

"What the auditor-general reports today is appalling," said CTF federal director John Williamson. "Rule breaking was wide spread, tax dollars were paid to individuals with no oversight, and commission fees were paid for work that should have been done by civil servants. Our elected officials and especially members of the Cabinet, failed to safeguard tax dollars. Canadians should be asking whatever happened to ministerial responsibility "

Ms. Fraser noted today, "Rules were broken or ignored at every stage of the process for more than four years and there is little evidence of value received for the money spent"- and-"There has not been adequate explanations for the collapse of controls and oversight mechanisms. Lessons must be learned to ensure that these kinds of problems do not occur again."

These statements have an uncanny similarity to the final reports from former Auditor-General Denis Desautels, who in 2001, wrote, "We found serious and widespread deficiencies in the process for selecting and approving projects and in their financial management and control." And on the need to improve accountability, "[Ottawa] also needs to make a cultural shift toward accepting accountability and the value of transparency in democratic government. Further, the bureaucratic culture needed to shift from being accountable for following rules and process to being accountable for getting results."

"Canadians should be alarmed that on the eve of a federal election, Ottawa is again embroiled in another financial scandal and the bill to taxpayers is fast approaching $1-billion," said Williamson. "In 2000 it was reported Human Resources Development Canada misplaced $1-billion yet nothing happened. The culture in Ottawa must change, and the government must toughen up the checks and balances, enact whistleblower legislation, and appoint an independent ethics commissioner who reports to Parliament."

"Ms. Fraser noted that the government requires uncompromising ethical leadership by elected and social officials," noted Williamson. "We can infer from her statement that Ottawa's ethical standard has been seriously compromised."