Canadian corruption

David Frum:

...Over the past few weeks, a judicial inquiry in Montreal has heard charges that Canada's governing Liberal Party was running a system of extortion, embezzlement, kickbacks and graft as dirty as anything Americans might expect to find in your run-of-the-mill banana republic.

Just last week, for example, Canadians learned that one of the closest friends of former Prime Minister Jean Chrétien was paid more than $5 million for work that was never done and on the authority of invoices that were forged or faked. It is charged that this same friend then arranged for up to $1 million to be kicked back in campaign contributions to Mr. Chrétien's Liberal party.

Corruption charges have dogged the Chrétien Liberals for years. Mr. Chrétien left office in 2003 under suspicion that he had pressured a government-owned bank to lend money to businesses in which he held an interest. But until recently, nobody was able to prove anything worse than carelessness and waste. Now, though, the improper flood of money from the public treasury is being connected to a reciprocal flow of money to the Liberal Party and favored insiders, including Mr. Chrétien's brother.

And because Mr. Chrétien's successor, Paul Martin, failed to win a parliamentary majority in last year's federal election, Mr. Chrétien's old survival strategy of denial and delay no longer works. Together, the opposition Conservative and Bloc Québécois parties could force an election call at any time. Opinion polls suggest that if an election were held now, the Liberals would lose decisively.

Canada will still have a huge problem because the Quebec party wants to imitate France just as the Liberals have. While the Conservatives may get a majority of the rest of the country, it will be interesting to see if corruption issues will override Quebec's natural allegiance to the Liberals.

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