"We were basically at war trying to save the country."

Guite admitted bending rules in 2002 testimony

CTV.ca News Staff

In testimony released Friday, former civil servant Chuck Guite admitted to bending the rules of the federal sponsorship program in an effort to keep Canada united in the face of the Quebec separatist threat.

Guite's confidential testimony -- given on July 9, 2002 -- was supposed to remain confidential for three years, but he waived that right through his lawyer.

In the transcript, Guite -- who held the title of executive director of the Communications Coordination Services Branch of the Department of Public Works -- told the committee why the federal sponsorship program was born prior to the Quebec sovereignty referendum in 1995.

The federalist side won by only about 50,000 votes.

"We were basically at war trying to save the country," he said.

With Canada's fate hanging in the balance, Guite said most rules were followed, but admitted he bent the rules "a little bit" in his efforts to keep the country together.

He said authorization to bend the rules came from the Privy Council Office. The Privy Council is the head office of the public service and is a branch of the Prime Minister's Office.

Guite handled advertising and sponsorship transactions for the Public Works Department.

In the testimony, he admits to regular meetings with now-disgraced former Public Works Minister Alfonso Gagliano, as well as Gagliano's deputy. However, Guite declined to say who, if anyone, served as liason between the Public Works Department and the Prime Minister's Office.

'War' led to program's secrecy

Guite said the veil of secrecy around the program was intended to keep information out of the hands of separatists.

"When you're at war you drop the book and the rules and you don't give your plan to the opposition. You don't leave your plan of attack on your desk," he said.

"I phoned the guys in Montreal - the media people - and I said, 'What's your inventory?' They said, 'Oh, it's about $8 million worth of outdoor advertising that's available.'

"I said, 'I'll buy it.' And the guy at the other end of the phone said, 'Pardon me?' I said, 'I'll buy it.'"

CTV's Mike Duffy said Guite's testimony paints him as a patriot, not a criminal.

"Chuck Guite is not at all ashamed of what he's done," Duffy said. "In fact, he thinks he's a hero."

Guite also said no one told him to use Montreal ad firm Groupaction, and that he retained them because of their good work during the referendum campaign.

The shadowy nature of the sponsorship program was exposed two months ago by Auditor General Sheila Fraser, whose blistering report sparked a wave of public outrage.

Guite's 2002 testimony was the result of an apparent fraudulent triple-billing incident by Groupaction. But Guite dismissed that, saying he had approved additional expenses after the cost of the project was initially underestimated.

He also related an anecdote to display the scope of the federalist ad blitz during the referendum.

Now retired, Guite is scheduled to appear before the committee again around April 22. He is currently vacationing in Arizona and New Mexico.

On Thursday, Prime Minister Paul Martin promised he would not call a federal election before Guite appeared before the committee. That would delay an election call until at least the end of April, meaning Canadians could go to the polls no earlier than May 31.

Also Thursday, Liberal members of the Public Accounts committee used their majority on the committee to out-vote the Opposition and push through a motion to make Guite's testimony public.

Earlier Friday, before the testimony was released, Toronto Liberal MP Dennis Mills said it would show that Guite took responsibility for the sponsorship mess and exonerate Gagliano of political meddling in the program.

"Everyone in Canada realizes that (Guite) ran the file and what he has to say is critical. And that process will begin today in detail," Mills told CTV's Canada AM.

However, the release of the testimony did not please the Opposition, who accuse the Liberals of using Guite as a handy fall-guy ahead of an anticipated election campaign.

Conservative MP Jason Kenney told Canada AM on Friday that "it appears(Guite) might have taken the fall."

NDP MP Judy Wasylycia-Leis was equally skeptical.

"I don't believe for a minute that there's anything but this committee being used for the Liberals' pre-election purpose and to help clear up their tarnished reputation going into an election," she said.

Mills denied the release of Guite's 2002 testimony was political maneuvering.

"I think the important thing that Canadians should know is that the Prime Minister, Paul Martin, has said to Canadians we are not going to the people until we have all the X-rays on this file and people are held accountable."