Tony Clement G8 Fund: New Documents Contradict Clement, Suggest He Carved Up $50-Million Fund

Tony Clement G8 Fund Documents

First Posted: 11/23/11 09:00 AM ET Updated: 11/24/11 12:19 AM ET

OTTAWA - The NDP has obtained more documents which appear to contradict Tony Clement's insistence that he was not involved in carving up a $50-million fund to spruce up his riding before last year's G8 summit.

The Treasury Board president told a Commons committee he simply played a "co-ordinating role," forwarding the wish lists of mayors in his Ontario cottage country riding to John Baird, infrastructure minister at the time, who decided which projects would get funding.

He repeated that assertion Wednesday in the House of Commons.

But municipal documents obtained by the NDP through provincial freedom-of-information legislation tell a different story.

New Democrat MP Charlie Angus says they show Clement gave "false and misleading" testimony to the public accounts committee earlier this month and is not fit to be in cabinet, much less in charge of the nation's treasury.

"Mr. Clement has become toxic, dead weight to this government," Angus told a news conference Wednesday.

"He has burnt his bridges of credibility, he has misrepresented the facts, he can't even stand up in the House and answer a question because he knows it puts him deeper in the doo-doo."

The documents show it was the manager of Clement's Parry Sound-Muskoka constituency office who put out a call to municipalities for funding applications, specifying the kinds of projects that were wanted.

"I have been asked to put out a call for G8 submissions specific to the enhancement of the downtown area's (sic) in each town and municipality," Sondra Read wrote in a March 30, 2009, email to nine mayors and other municipal officials.

"We are looking for storefront renovations, roadwork, landscaping and general beautification, lighting, signage, anything that will enhance and is specific to the downtown area."

Read advised the municipalities to send their applications to her and she would forward them to FedNor, the economic development agency for northern Ontario over which Clement, then the industry minister, presided.

The email appears to be at odds with Clement's testimony at the public accounts committee.

Clement vehemently denied opposition accusations that he and his officials were involved in selecting the 32 projects which ultimately received almost $45 million.

"That's just a myth," he told the committee. "It never happened that way. We were not involved in selecting these projects."

Read's reference to FedNor also appears to contradict Clement's assertion that no government department or agency, other than Baird's infrastructure department, was involved in the selection process.

The minutes of a Feb. 27, 2009, meeting with local officials also appears to contradict that assertion. The minutes show that FedNor official Tom Dodds advised that "FedNor is going to evaluate all projects applying basic tourism principles and provide a recommendation in a report for Mar. 30."

In her last report in June, former auditor general Sheila Fraser slammed the government for an unprecedented lack of any documentation to explain how G8 legacy projects were chosen. She said other departments and agencies insisted they were not involved and, therefore, could not provide any paper trail.

The report also slammed the government for misleading Parliament when it sought authorization for an $83-million border infrastructure fund, without mentioning most of the money would be spent on G8 legacy projects far from the border in Clement's riding.

The RCMP has decided not to investigate opposition allegations that the Harper government misappropriated funds in creating the legacy fund.

Clement told the public accounts committee that his mayors initially came up with 242 projects worth about $500 million. When he advised them they'd have to whittle their wish lists down to only priority projects, Clement said the mayors came back with applications for 33 projects, which were passed on "without additional alteration or review" to Infrastructure Canada.

Baird, now foreign affairs minister, ultimately approved 32 projects. Clement said the 33rd was withdrawn because "the local municipality decided" it couldn't afford its share of the cost.

Liberal MP Gerry Byrne expressed incredulity that the mayors "self-evaluated" their competing wish lists and pared them down "with surgical precision" to those projects which were cleared for funding. But Clement rejected Byrne's suggestion he was the "guiding hand" behind the choices.

Here again, the new documents obtained by the NDP appear to contradict Clement.

In an April 20, 2009, email to Read, the chief administrative officer of Gravenhurst, Ont. provides an updated list of projects, including notification that the town — on Clement's recommendation — is withdrawing its application to fund construction of a centennial centre.

"Minister Clement has advised that this project should be removed from the G8 project list and be included in the Town of Gravenhurst's application for the Building Canada Fund (a national infrastructure fund) — on the advice of Minister Clement, please remove this project from the G8 project list."

The documents also show that a staffer in Clement's ministerial office, David Pierce, advised the Township of Muskoka Lakes that two of its proposed projects would not receive funding due to the fact the legacy fund's limited budget was insufficient to cover all the 200-plus proposals initially received.

And he made it clear that funding decisions were being made by Clement's office and Industry Department officials — not Baird's infrastructure team.

"The minister's staff and departmental officials have reviewed all proposals received in accordance with the above considerations," Pierce wrote "on behalf of Minister Clement" in a July 2009 letter to the township's chief administrative officer.

"We have determined that the focus and priority of federal support for community based, G8 Summit-related projects will include promotional activities for the area, infrastructure and legacy projects."

The documents show that municipalities certainly believed Clement had the final word on which projects would receive funding. Muskoka Lakes township, for instance, submitted its wish list to Clement "for your consideration and approval."

However, Clement persisted Wednesday in denying any role in selecting the projects.

"The record is very clear ... that I had no determinative role. I had a recommendation role as a local member of Parliament but the decisions were made by the minister of transportation and infrastructure," he told the Commons.

That Clement answered for himself was, in itself, remarkable. For months, Clement has sat firmly in his seat while Baird fields all questions about the legacy fund in the Commons. While Clement did take questions —75, by his count — at committee, Baird was also there to back him up.

The NDP also accused Clement of altering the official record of his testimony to the public accounts committee — an accusation Clement vehemently dismissed as "absolutely false."

Angus said the initial written transcript and audio and video recordings of the proceedings show Clement twice saying "sure" when asked by Angus to table the 242 initial applications for G8 legacy funding. Yet in the official Hansard transcript, Clement's "sures" have mysteriously disappeared.

MPs and their staff can ask for corrections or amendments to the transcript before the final, official version is issued.

"The president of the Treasury Board is the one who has to ensure that everyone follows the rules. Here's a guy who's broken all the rules and they're running behind him trying to change the story every week as more information comes out," Angus charged.

Clement did not directly respond when asked in the Commons about the altered transcript. Nor did he re-offer to produce the application forms.

However, he later asked the Speaker to investigate how the official record of the committee came to be altered. He said neither he nor anyone in his employ asked for the changes and called the NDP's assertion to contrary "baseless and outrageous."

The NDP has dug up a treasure trove of municipal documents through provincial freedom-of-information legislation, much of which has been embarrassing to Clement. But the latest batch —part of 1,000 pages the NDP is still poring over — may be the most damaging yet.

By Joan Bryden, The Canadian Press
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OTTAWA - The NDP has obtained more documents which appear to contradict Tony Clement's insistence that he was not involved in carving up a $50-million fund to spruce up his riding before last year's G...
OTTAWA - The NDP has obtained more documents which appear to contradict Tony Clement's insistence that he was not involved in carving up a $50-million fund to spruce up his riding before last year's G...
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10:05 PM on 11/24/2011
Much as Tony is currently in to his waist, we all know that absolutely nothing happens without King Stephen giving his say-so. If there has ever been a controlled government like Mr. Harper's, it must have happened a very long time ago. Yes, Tony should go and he should go in much worse regard than Ms Helena Guergis. Ms Guergis never had anything proven against her and she was dismissed; why then is Tony still around getting deeper and deeper into the mire with each passing day?
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spinnerator
07:52 PM on 11/24/2011
My god, he's acting just like a Chretien Liberal, how could he?

Shawinigate anyone?
01:35 PM on 11/25/2011
Yup, did Chretien Prorogue gov't when he was being investigated by the opposition? did Chretien run his campaign based on "others" lack of morals?

Conservatives everywhere are the same (when they run for office). They say they have a moral compass, and they are traditionalists, then they gain power and are more corrupt than the previous gov't (see Bush post Clinton -lying about a BJ v. lying about war). Or they show no moral compass (ie, Conservatyives hiding documents about torture both in the US and in Canada).

Spinnerator if this was the first issue then you may have a point but conservatives have illegally funded campaigns, illegally approved military/police equipment that studies have shown are not needed and used the G8 to reward their party backers. 3 strikes qas cons like to implement, should be jail time.

Chretien was raked over the coals by conservatives for his abuse, where is the conservative anger now? Where is conservative consistency? At least Chretien kept Canada whole and balanced the budget, Conservatives have done nothing positive for Canada domestically or internationally since being elected, where are the conservatives who are angered by Harper acting like a corrupt Chretien on steroids...crickets..

Conservative = hypocrisy
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Shandra Brown Valyear
Political Addict
11:15 AM on 11/24/2011
Clement and his idol Stevie are hell bent on making Canada "their property" and to heck with the rest of us. Why Clement is getting slammed more for this wasteful spending and self grandiosity is beyond me. The Tory majority is going to do what it takes to line their own pockets and only make it more difficult for the middle class and the poor.
On the G20 I want to see some action taken against Clement. It's the only way they might start to hear.
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Capital Ottawa
07:02 AM on 11/24/2011
Clement, a Conservative with no credibility in charge of the $4 Billion dollars in cuts to public services. We have seen how he mishandled $50 million, say good bye to services you currently pay for, will continue to pay for but as a result of Clement no longer be able to use. Clement's behavior shows his disregard for our Parliamentary system and for the Canadian people. Harper should toss him out, he's bringing the party down.
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Jason Bullock
08:28 AM on 11/24/2011
I'm certain Harper, Baird, etc... also have a hand in bringing their party down.
10:06 PM on 11/23/2011
They are corrupt, willing to lie as a group and took that money under false pretenses - end of story. It is tough for the RCMP to make preliminary findings that would warrant a court ordered search warrant when the Government in power can lie, withhold and stymie their efforts so they never get off the ground. Good for the NDP for ferreting this out and not giving up. Also Lawyers need to take note of the auditors not so veiled comment that lawyers would have an interesting time with this one.
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07:20 PM on 11/23/2011
Corruption needs to end for people to trust their government again but government at the moment is nothing more than bureaucrats serving the elites. This will end when the Euro and world financial system collapses....I give it 3 months
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Ted Rosa
08:52 AM on 11/24/2011
Personally, I called the Great Recession and the housing bubble burst in 2005-6, and at the time, predicted Recession in 2008 and depression in 2011. After the Bail-out I amended my prediction to 2013. I stand by those predictions.
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mcpogo
06:39 PM on 11/23/2011
The Conservatives have lied so many times about everything they do, I believe they lose track of the truth and honestly don't know themselves when they are lying anymore. So, not only cowards (closing Parliament - running scared) but liars too, Sounds like a great base to form a government on!The RCMP must investigate all this crap if only to preserve their own integrity and credibility. Oh but Harper just put his hand-picked man at the top of the RCMP so we know credibility is already gone! It's almost like Canada needs it's own "Canadian Spring". OCCUPY Ottawa!
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HUFFPOST SUPER USER
Warren Yuill
Jesus Built My Hot-Rod
05:19 PM on 11/23/2011
Maybe Tony' will' get his bacon fried? Oh well. Thats some beautiful gazebo!
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Miller Time
03:25 PM on 11/23/2011
I'm a Conservative member, but Clement has to go!
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gx5000
Life's too short, be happy..
03:20 PM on 11/23/2011
Man, they all act as if they were lawye.....oh right.....
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JackHoffman
Pundit
03:07 PM on 11/23/2011
What's the point? Majority Govt. = No investigation. RCMP corrupt.
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Tyler Austin
Women = people. Corperations ≠ people.
03:02 PM on 11/23/2011
My post has no slander, no libel, no profanity and dosen't even mention the MPs in question by name. I am a citizen of Muskoka who has seen this corruption first hand and has a record of it. I cannot post here for some reason.
04:44 PM on 11/23/2011
Tony moonlights as a mod at Huffpo.
10:07 PM on 11/23/2011
You are here, what happens when you try to post
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Norma Ward
02:55 PM on 11/23/2011
Here is a video showing just how hard those we elect to represent us work while they warm a seat in the House of Commons:

http://viableopposition.blogspot.com/2011/11/working-hard-for-canada-rob-anders.html
02:13 PM on 11/23/2011
He would have survived had he come clean from the start.

Such hubris.
04:45 PM on 11/23/2011
Saw this on the National. Mansbridge implied that this weasel is a serial CBC-basher.
HUFFPOST SUPER USER
Tyler Austin
Women = people. Corperations ≠ people.
01:57 PM on 11/23/2011
why can't I post on this? I can post on every other thread.
05:25 PM on 11/23/2011
My guess is that with HP giving a platform for a crook like Conrad Black to spew his word salad, anyone who is sane and trying to point out how the corruption of the elitist run government is destroying Canada, must not be allowed to post.