Report could hurt Liberal's election chances

Big news day for the anti-liberal forces of canada:

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OTTAWA (CP) - Liberal MPs say they fear an explosive auditor general's report Tuesday could erase a decade's worth of credibility on fiscal issues and put the party on fragile footing on the eve of an expected federal election.

Quebec MP Nick Discepola said Sheila Fraser's long-awaited report on the federal sponsorship and advertising scandal could have an immeasurable impact, and the mood among MPs is one of "great apprehension." "The anticipation is that it will be a very scathing report attacking the credibility that it took us 10 years to build.

"Up until this point, we've always been perceived by the Canadian public as very sound prudent administrators. And if all of a sudden this amount (of misspent money) comes out, it doesn't matter if it's $50 million or $100 million . . . It will hurt us.

"Eventually, we're going to really, really suffer the consequences at the polls."

Fraser's report is expected to focus on contracts which saw money flowing from Public Works to Quebec advertising firms, and could also point to other government agencies, companies, senior civil servants and political staff.

Concerns were fed by new allegations Monday of money going from ad firms into Liberal party coffers and left MPs fearing "that it may be the tip of the iceberg, that there may be other people involved," Discepola added.

"That to me is very serious, because then it attacks our government."

A Liberal caucus meeting was called for Tuesday at noon - two hours before the release of Fraser's report - in which the government was to lay out its action plan to limit political fallout.

One MP, who asked not to be named, said MPs are feeling "not very comfortable at all," with the timing of Fraser's report on the eve of an expected spring election.

"Cannons to the left of us, cannons to the right of us," said the MP. "The timing is not very good on this. The only way it can be dealt with effectively will be a decisive and swift response to refer the matter to the appropriate authority. "

That could mean calling a public inquiry or the firing of several officials if Fraser's report is damning enough, said a Liberal insider who asked not to be named.

"Severe direct accusations of mismanagement of public funds, and deliberate attempts at coverup and profiteering of some kind by someone - if she has any hints of that, that's it," said the source.

Firm, swift action is the only thing that will help pry the image of misspent money from voters' minds, said Discepola.

"I think we're OK right now, the prime minister is perceived to be an honest individual," he said.

"Eventually though, when you put two or three things together, including the gun registry overspending, those erode our credibility. And we had impeccable credibility when it comes to fiscal prudence and sound administrators until these incidents occurred."

Fraser's report is expected to result in swift action on the part of Prime Minister Paul Martin, including the recall of former public works minister Alfonso Gagliano, now Canada's ambassador to Denmark.

Another MP who asked not to be named said "there is a lot of concern" as MPs head into a noon meeting with the prime minister.

"Certainly everyone's very aware that an emergency meeting is being called. Usually it's a signal that the government feels it has to do damage control and that we have to be speaking on the same side."
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Martin can pretty much say whatever he wants, but he was the ranking quebec minister when the slush funds were bandied about, while gagliano did whatever he felt, contracts were fraudulently handed out and often without contracts.

this is an mp in denial:

Firm, swift action is the only thing that will help pry the image of misspent money from voters' minds, said Discepola.

"I think we're OK right now, the prime minister is perceived to be an honest individual," he said.

oh boy is that about to change.