Sponsorship scandal

The sponsorship scandal, AdScam or Sponsorgate, was a scandal in Canada that came as a result of a federal government "sponsorship program" in the province of Quebec. Illicit and even illegal activities within the administration of the program were revealed, involving misuse and misdirection of public funds. The resulting investigations and scandal affected the Liberal Party and the then-government of Prime Minister Paul Martin. The scandal became a significant factor in the lead-up to the 2006 federal election when, after more than 12 years in power, the Liberals were defeated by the Conservatives. The Gomery Commission's First Phase Report, which assigned blame for the Sponsorship scandal, cast most of the indemnity for misspent public funds and fraud on Chrétien and the Prime Minister's Office (PMO) staff. On 26 June 2008, the Federal Court quashed the Gomary Inquiry's conclusions that Chretien and Pelletier bore responsibility for the sponsorship scandal. This decision was later upheld by the Federal court of Appeal. The program ran from 1996 until 2004, when broad corruption was discovered in its operations and it was discontinued.