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March 06, 2004



Adscam: Procurement Process Still Permits Favouritism and Cronyism



Procurement itself sowed Adscam seed -- Process still permits favouritism and cronyism Diane Francis, National Post, Mar. 02, 04

It's hardly surprising the current Liberal sponsorship scandal, or Adscam, occurred, given the procurement process for advertising services in Ottawa that's been in place for decades, and still is.

[. . . . ] The result has been shameless patronage over the years, both Conservative and Liberal, because it is based on a process that is unaccountable, irresponsible and corruptible. Every regime going back decades has been plagued with at least one juicy advertising controversy because contracts are awarded on the basis of cronyism and favouritism.

[. . . .] Here's how it works, [ -- from a retired ad man . . . ]

The government buys its media through an agency of record and outsources the advertising campaigns it needs [. . . .]

Public Works Canada procures these services and, based on input from the department involved and its needs, writes up a Request for Proposal (RFP), then posts it on its Web site for agencies. The problem with RFPs is that they can be written up in such a way as to exclude, or include, entities from the bidding process.

For instance, the Liberals could keep out small independents by stipulating that only an agency that can handle a $10-million account or one with a Quebec office or partner need apply.


Note that military contracts have to be run by the Quebec cronies too -- not through all of Canada, note -- through Quebec. This, I learned from people in the military. Also, for example, Air Canada must keep its head office in Quebec -- and it goes on, ad infinitum. NJC

"Then someone at Public Works, or at the department involved, could also stipulate which Quebec agency would be an ideal partner," said the source.

The Auditor General's report named several small Quebec-based entities, which were participants in the sponsorship campaign, that cost taxpayers $250-million, $100-million of which she estimated was misdirected, the result of overcharging or stolen because no work was done.

Gatekeeper to these untold millions in advertising business is the RFP process. There's an RFP industry of consultants and writers in Canada who specialize in helping agencies craft their RFP to get the contract.

Public Works chief of advertising procurement for years was Charles (Chuck) Guite. He retired when Alphonso Gagliano left as Minister of Public Works in 2002. A source has alleged some officials inside the department would suggest the names of acceptable Quebec partners to enhance the agency's chance of success.

[. . . .] Scheduling the pitches was Chuck Guite. He was not on the committee but was usually in attendance.


[. . . .] The problem is the enormous power enjoyed by the gatekeepers and the lack of any accountability or responsibility on the part of those who select the agencies for the work that's done.

[. . . . With] government business, federal or provincial or Crown corporation . . . bottom lines and accountability don't exist.


Note that Chuck Guite has been able to retire with a pension that lets him horseback ride away his days in Arizona--or is it Texas?--and apparently he cannot be brought back to Canada to answer questions -- something about an extradition treaty. Meanwhile, Canadian taxpayers will pay for any efforts to get him; taxpayer money has already been spent sending a CBC reporter and at least one photogrpher to try, unsuccessfully, to interview this arrogant alleged conspirator? crook?; taxpayer money will be used for investigations--and more--in this crooked enterprise. And the Liberals have set election financing up so that taxpayer dollars will give them more than any other party so they can be re-elected. The crust! The gall! Are you going to vote for more of the same? NJC




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