New developments on the story of David Smith, the MP for the riding of Pontiac.

From Hansard:

Mr. Pierre Poilievre (Nepean-Carleton, CPC): Mr. Speaker, Frank Brazeau, the secretary of a local Liberal association and a public servant, used his influence to secure $1 million in contracts for the Liberal member of Parliament for Pontiac. The KPMG auditing firm has found irregularities in contracts totalling $15 million also given by Mr. Brazeau.

Will the Prime Minister release KPMG's report now? Otherwise, what is he trying to hide?

Hon. Mauril Belanger (Minister for Internal Trade, Deputy Leader of the Government in the House of Commons, Minister responsible for Official Languages and Associate Minister of National Defence, Lib.): Mr. Speaker, this matter is now before the Ethics Commissioner, as members well know. The member for Pontiac has committed to making the results of whatever the commissioner says public. I would hope that members opposite would wait for a response from the Ethics Commissioner before commenting further.

Mr. Pierre Poilievre (Nepean-Carleton, CPC): Mr. Speaker, this is more stonewalling.

A Liberal riding secretary used his influence to direct almost $1 million in contracts to a Liberal member of Parliament. Both men are close friends and ardent loyalists of the current Prime Minister and both have been lavishly rewarded for it. A KPMG report found that more than $15 million saw irregularities in the way it was handed out in the form of contracts.

Why will the Prime Minister not immediately release this KPMG audit so that taxpayers can know just how much he has been rewarding his Liberal friends?

Hon. Scott Brison (Minister of Public Works and Government Services, Lib.): Mr. Speaker, first of all, the review-and it is not an audit, it is a review-was commissioned by the department as part of our ongoing efforts to strengthen competition and to increase accountability.

The fact is that these contracts with the company were cancelled as a result of this review, but it is important to recognize that in all cases services were received for taxpayers' dollars and that in fact there were valuable services provided by the company. Furthermore, there has been disciplinary action taken against this employee.

Until now, the question has been limited to whether David Smith was actually far enough removed from the company he used to run (now run by his wife, and out of the family home) to be able to insulate himself from the disturbing hints of improperly granted contracts from PWGSC.

Now the circle widens.

François Brazeau, public servant and Liberal Party member, is named. Who is Brazeau? Not some two-bit bureaucrat, that's for sure:

Public Works and Government Services Canada<snip!>

I had the wrong Brazeau! There is a Frank Brazeau (as opposed to François), and while François is linked to David Smith by virtue of both having worked for PWGSC, this Frank Brazeau has a different link:

Frank Brazeau was a contracting officer at Consulting and Audit Canada whose performance came under the scrutiny of auditors at KPMG. In their recent report, the auditors raised allegations of irregularities in Mr. Brazeau's handling of contracts, finding a lack of documentation, backdating of contracts, manipulation of requests for proposals and irregular invoices.

Mr. Brazeau was initially suspended with pay, but he is no longer receiving a salary "pending further review," according to a senior federal official.

What is the link?

It's amazing. He helped coordinate the PSAB program for Indian and Northern Affairs Canada. What is PSAB?

Procurement Strategy for Aboriginal Business!

So there is the link to contracts that are supposed to go to aboriginal business. As I suggested earlier, I wondered if David Smith's Abotech was a front for non-aboriginal businesses landing work that was supposed to be set aside for aboriginal businesses.

And there is yet another link:

In addition to the past professional relationship between Mr. Brazeau and Mr. Smith, sources said that this past year Mr. Brazeau became the secretary of the Liberal association in Mr. Smith's riding of Pontiac, a rural area north of Gatineau, Que.

Association president Luc Martel confirmed in an interview that Mr. Brazeau was elected after the 2004 federal election, in which Mr. Smith first entered the House of Commons. Mr. Martel said the Liberal association is not very active and that Mr. Brazeau did not attend many of its meetings, and that Mr. Brazeau sent a letter of resignation last month. "We didn't meet very often, and when we did meet, he wasn't available," Mr. Martel said.

KPMG has found $15 million, managed by Brazeau, suffering from "irregularities". At least $1 million went to Smith and Abotech. Did other "aboriginal" friends of Frank Brazeau enjoy the rest of the good times? How about any Liberals and friends of Liberals?

And in case I have to say it, one final question: Did any of these friends offer a "success fee" to Frank Brazeau?

[Huge thanks to JM for catching the Brazeau mixup!]

David Smith, Abotech

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