Former Liberal party organizer Jacques Corriveau charged in decade-old Sponsorship Scandal

A former Liberal party organizer and a close friend of former prime minister Jean Chretien has been charged in connection to a decade-old spending scandal that rocked the public’s confidence in federal politics and led to the rise of Stephen Harper’s Conservatives.

Jacques Corriveau, a former Liberal Party of Canada organizer who had previously been identified as a central figure in the Sponsorship Scandal, has been officially charged by the RCMP in an investigation that appears to have been ongoing since 2002.

The RCMP announced on Friday that they charged Corriveau, 80, with fraud on the government, forgery and laundering the proceeds of crime.

The charges stem from the decade-old Sponsorship Scandal, which damaged the credibility of the former Liberal government under former prime minister Paul Martin and his predecessor Jean Chretien. Corriveau is a former party organizer with close ties to Chretien.

The scandal surrounds a $150 million national unity program that involving placing Canadian flags and banners at public events across the country. The sponsorship program became embroiled in controversy when it became apparent a large amount of the fund was being spent in Quebec through Liberal-friendly advertising firms.

The scandal, also known as AdScam, resulted in the Gomery Commission inquiry, which found that some $2 million of government money was awarded in contracts without a proper bidding process, and identified Corriveau as a central figure in an "elaborate kickback scheme".

The sponsorship scandal played a large role in the 2006 federal election, when the Liberals were defeated by Stephen Harper and the Conservatives.

The Globe and Mail reports that Chretien called Corriveau a "good friend" during his appearance in front of the Gomery Commission, but denied have any knowledge of his role in the sponsorship program.

On Friday, police alleged that Corriveau set up a kickback system to profit off contracts awarded through the sponsorship program.

"Mr. Corriveau allegedly claimed that he could exercise influence on the Federal Government to facilitate the awarding of contracts to certain Quebec-based communication firms in return for several million dollars' worth of advantages and/or benefits for himself and other persons," an RCMP statement reads.

One alleged example was a contract awarded to Groupe Polygone-Expour for producing several publications and organizing hunting and fishing trade shows. Corriveau is believed to have made millions of dollars in kickbacks through bogus invoices paid from Groupe Polygone-Expour to Pluridesign, a company he owns.

He is scheduled to appear in a Montreal court on January 10. Investigators have places restraint orders on two investment accounts held by Corriveau, as well as his personal residence.

The announced charges come as a bit of surprise, considering the sponsorship scandal occurred more than a decade ago. RCMP said that Project Carnegie - the investigation into the sponsorship scandal - has been ongoing and that Corriveau is "one of several investigation components."