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Ottawa — Treasury Board President Reg Alcock moved yesterday to downgrade the seriousness of the sponsorship scandal, saying outside accountants have uncovered only $13-million in questionable spending; a fraction of the $100-million cited by Auditor-General Sheila Fraser.
"This number of $100-million is beginning to shrink rather substantially," Mr. Alcock told CTV's Question Period in an interview that was aired yesterday.
". . . As they've gone through it, and they're not finished yet, I'm told that the number in question has fallen to about $13-million."
Opposition critics said the Liberal government is attempting to discredit Ms. Fraser.
In her scathing report last February, Ms. Fraser said the government received little value for $100-million in commissions and fees it paid out to Liberal-connected advertising firms hired to promote the country in Quebec. The scandal is being blamed for dropping poll numbers for the Liberals, who were riding high but now face a possible minority government if an election were called soon.
Mr. Alcock's comments appeared aimed at convincing Canadians that the government is getting to the bottom of the difficulties, fulfilling Prime Minister Paul Martin's pledge to call an election only when Canadians have enough information to make a sound judgment.
"I think Canadians are beginning to understand what's going on here," Mr. Alcock said. "The facts and figures are beginning to come out of the sponsorship scandal."
Mr. Alcock said the accounting firm Ernst and Young has found the questionable payments are much lower than first thought. But he said "lousy" government management systems made it impossible to track where the money went.
Conservative MP Vic Toews, who sits on the parliamentary committee investigating the matter, wanted to know how Mr. Alcock has received information from Ernst and Young that he has not. He said the committee hired the firm to help in its investigation.
He also said Mr. Alcock is trying to undermine Ms. Fraser as the government heads to a possible spring vote. He said Mr. Alcock should present information to the Auditor-General's office if he has it.
"They don't stand a chance against her," Mr. Toews said of Ms. Fraser's credibility.
"What does Sheila Fraser have to gain by painting the picture of the government's finances that she has painted?"
During his television appearance, Mr. Alcock was asked if Ms. Fraser exaggerated the problem.
"Well, the Auditor-General reported her findings," he said. "I think what happened to it after the fact, I think this has spun all over the place. And I think what's important about the work that's being done right now is the facts are being put on the table."
Mr. Alcock had harsh words for the parliamentary committee, comparing it to the approach taken by Joseph McCarthy, the late communist-hunting U.S. senator.
"I call them junior Joe McCarthys that are running around trying to convict by association virtually anyone who has ever possibly been a Liberal."
In a later interview on Question Period, Liberal campaign co-chair David Herle said he believes the committee is behaving in a somewhat partisan nature, but that it is doing a reasonable job.
"I think that committee is actually shedding a fair bit of light for Canadians on what went on in that program."
Mr. Herle repeated that the Prime Minister would not call an election until he feels Canadians "feel comfortable that they know enough about the sponsorship program that they can vote in good conscience knowing what they need to know."
Many media commentators and observers are too focused on the government's strategy in handling the scandal, Mr. Herle added.
"I actually don't hear much comment about, frankly, the morality of it," he said.
"For Paul Martin, this is not a strategy."
