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Posted on 26/05/03

Ad firms gave subcontracts to cronies

OTTAWA -- At least five separate advertising agencies gave subcontracts from federal government sponsorship deals to their business partners, sons, political allies and even themselves, The Globe and Mail has found.The practice has raised serious legal concern in the Department of Public Works, and in many cases appears to have unnecessarily inflated the cost of contracts by 17.65 per cent, the commission the initial contractors charged for arranging the work.

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