The police have almost finished probing advertising firms involved in the sponsorship scandal and are moving on to allegations of corruption against Liberal officials, sources say.
The RCMP and the Sûreté du Québec have recommended to Crown prosecutors that a final set of charges be laid in the advertising phase of the probe, against people who worked for at least two companies involved in the sponsorship program, sources said.
These cases wind up the police investigation of the major advertising firms involved in the controversial federal initiative to put up Canadian flags in Quebec after the 1995 referendum on sovereignty.
Having focused on issues of fraud since 2002, the Mounties sent a clear message last week they are now looking at allegations of influence peddling, laying charges against former federal Liberal official Benoît Corbeil.
Sources said the RCMP is hoping to go higher up the Liberal hierarchy than Mr. Corbeil, the former director-general of the Liberal Party's Quebec wing, who is accused of taking a bribe from a businessman and defrauding the party.
Mr. Corbeil denounced a number of Liberal officials at the 2005 inquiry into the sponsorship scandal, and Liberals are wondering what, if anything, he will tell the RCMP.
A former Liberal official said the charges against Mr. Corbeil "are a signal to the political class of the day that there are more things to come."
Another source said the RCMP is hoping to obtain more information on the inner workings of the party in coming months. "If everything goes well, a bunch of people could spill the beans at the same time," the source said.
As the Mounties continue their investigation, they are showing a willingness to strike deals with individuals to get additional information. While fraud can be proven with documentary evidence, the police need witnesses, including people with skeletons in their closets, to prove influence peddling.
The police started their probe into the sponsorship scandal six years ago by looking at the advertising firms that received millions of dollars in fraudulent sponsorship contracts. The second phase of the police probe involves political officials alleged to have received kickbacks from those firms.
"The people at the advertising agencies were the first to be targeted. To find acts of corruption, it was important for the police to get the corrupters talking, in order to get at the corrupted," a source said.
The RCMP is currently probing the activities of former Liberal organizer Jacques Corriveau, whose residence was searched last year by the police force's proceeds of crime unit. Mr. Corriveau, who received $10-million in subcontracts from recipients of sponsorship funds, was described in the final report of the inquiry as "a central figure in an elaborate kickback scheme."
Last week, the RCMP alleged that Mr. Corbeil received $50,000 in bribes from a businessman who wanted to buy federal land to expand his quarry, and approved $100,000 in fake invoices at Liberal offices in Montreal.
The charges were not related to the sponsorship program, but they pointed to the existence of corruption in the Liberal Party in the second half of the 1990s and early 2000s. According to the RCMP, Mr. Corbeil conspired with two other Liberal organizers.
As it continues its work, the RCMP is benefiting from the fact that more and more people are reaching out-of-court settlements with Ottawa in its massive lawsuit to recoup sponsorship funds. A legal expert said it is easier for the police to deal with people who no longer have a multimillion-dollar lawsuit hanging over their heads.
Groupaction president Jean Brault recently agreed to pay $250,000 to settle his civil dispute with the federal government. He said at the inquiry that Liberal officials, including Mr. Corriveau, constantly solicited him to make illicit donations to the party.
However, the government is still suing Luc Lemay, a major player in the sponsorship program whose firm received $30-million in federal contracts. Mr. Lemay's firm, Le Groupe Polygone Editeurs, gave $6.7-million in sponsorship subcontracts to Mr. Corriveau.
RELATED PROBES TO DATE
The RCMP and the Sûreté du Québec have investigated the following individuals in relation to the sponsorship scandal:
Admen
Paul Coffin was the first person charged, pleading guilty in 2005 to a $1.5-million fraud. He got an 18-month sentence.
Jean Brault received a 30-month sentence after pleading guilty in 2006 to fraud in relation to contracts worth $1.6-million.
Jean Lafleur was sentenced to 48 months in prison after pleading guilty to a $1.5-million fraud last year.
Police have investigated senior officials at other advertising firms, and have recommended to Crown prosecutors that further charges be laid.
The bureaucrat
Former civil servant Chuck Guité was found guilty of fraud in 2006, and received a sentence of 42 months. He appealed the verdict and is waiting for the ruling.
Liberals
The RCMP last week charged Benoît Corbeil, former director-general of the Liberal Party of Canada's Quebec wing, with fraud, conspiracy and exercise of influence. The charges are not linked to sponsorships, but are related to matters unearthed by Mounties working on the file.
Liberal organizer and fundraiser Jacques Corriveau received $10-million in subcontracts from firms involved in the sponsorship program. His home was raided last year, but no charges have been laid against him.
Staff
