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March 12, 2004

Flagscam

Okay, this is getting ridiculous:
The government's 1996 plan to hand out one million free flags is another boondoggle involving phony invoices, a Liberal-friendly advertising agency and massive overspending, a former party president says.

Doreen Braverman, a former president of B.C.'s federal Liberal party and owner of a chain of flag stores, says she and a lot of other small suppliers were paid a commission to provide phony invoices for flags they never made....

She says the government got around the rules on competitive bidding by faking invoices from small suppliers all over Canada – each one under the limit where bids would be required. Braverman said she got $250, 10 per cent of a $2,500 fake invoice. "We didn't produce any flags – but we sent the invoice and they paid us and we had to pay the suppliers. It was just a way to circumvent," Braverman told CBC News. When asked whether it was a kickback, Braverman replied: "It is like a little kickback." ... Braverman also believes the flag freebie, budgeted for $6 million to $7 million, went way over budget because of the costs for staff, call centres and postage to deliver the flags. "By my estimates, it was $45 million," she said.

Ah well, at least Martin didn't know anything about it. No, wait a minute, he did:
She said she complained to members of Parliament, including then-Finance minister Paul Martin, but was told nothing can be done. She said in a phone call with Martin, he told her he couldn't do anything because 'Sheila does her own thing.'
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