Company That Made Huge Payments to Liberals In Sponsorship Scandal Will Reimburse Taxpayers
"OTTAWA — A company that made large payments to a former Liberal organizer has offered to pay back millions of dollars to taxpayers in relation to its role in the sponsorship scandal, sources say.
Groupe Polygone is involved in secret discussions with federal lawyers in the hopes of reaching an out-of-court settlement in Ottawa's massive $44-million lawsuit against the main players in the sponsorship scandal.
After waging a three-year fight to have the lawsuit dismissed, Polygone's lawyers brought a motion before the Quebec Superior Court last week to delay the civil trial to allow further discussions with Ottawa.
Mr. Justice André Wery of Quebec Superior Court agreed to Polygone's request, and postponed the proceedings until October, 2009.
Sources said Polygone's lawyers have offered about $5-million to settle the firm's portion of the lawsuit. The federal government rejected the offer, but is still involved in discussions in an effort to obtain more money.
“The departments [of Justice and Public Works] have been seeking an extra $10-million from Polygone,” a federal official said.
Polygone was a central player in the sponsorship program, receiving more than $35-million to put federal advertising in its publications and at its events, such as hunting and fishing shows."
Globe & Mail