Monday, March 20, 2000

OTTAWA - At a news conference today, Democracy Watch released letters calling for disclosure of party fundraising activities by senators, and an investigation of party fundraising activities by ministers. On Tuesday, the Senate resumes debate on Bill C-2, An Act amending the Canada Elections Act, which contains the fundraising rules for political parties and candidates.

In a letter to members of the Senate Standing Committee on Legal and Constitutional Affairs, Democracy Watch called on the senators to disclose any political fundraising activities they have been involved with in the past 10 years, and to withdraw from the debate and voting on Bill C-2, as required by the rules of the Senate, if they receive any remuneration for their fundraising activities. (Please contact Democracy Watch to obtain a copy of the text of the letter)

In a letter to federal Ethics Counsellor Howard Wilson, Democracy Watch calls for an investigation of Prime Minister Jean Chrétien, Finance Minister Paul Martin, Health Minister Allan Rock and their ministerial staff for any involvement in fundraising activities for any political party, riding association, or other organization. Democracy Watch believes that these activities violate the Conflict of Interest and Post-Employment Code for Public Office Holders, which prohibits public office holders (including ministers, secretaries of state, and some ministerial staff) from, among other things: assisting private entities; being involved in private interests that are affected by government actions, and; having even "the appearance of being placed under an obligation to any person or organization, or the representative of a person or organization, that might profit from special consideration on the part of the office holder." (Please contact Democracy Watch to obtain a copy of letter to Howard Wilson)

"Political parties are private interests and Bill C-2 helps the Liberal party and Liberal candidates raise money in secret and undemocratic ways," said Aaron Freeman, Board Member of Democracy Watch and author of the book Cashing In: Money and Influence in Canadian Politics, to be published in April this year. "When politicians and their staff help their political party or any other private interest, the public interest suffers greatly. Bill C-2 is an example as it contains more loopholes than law concerning political fundraising activities."

Democracy Watch also released copies of its recent letters to the Prime Minister and Industry Minister John Manley (and their response letters) requesting, respectively, disclosure of donations from private interests that had received grants or contracts from the federal government, and donations from private interests that would have benefitted from the subsidies to hockey teams. Minister Manley's response letter states that he has directed his riding asssociation president to disclose the requested information. In stark contrast, the Prime Minister's response letter completely ignores Democracy Watch's request for disclosure of donations. (Contact Democracy Watch to obtain a copy of the letters)