Former civil servant Chuck Guite admitted he bent the federal sponsorship program's rules in an effort to keep Canada united in the face of the Quebec separatist threat.
Guite's testimony -- given on July 9, 2002, but released Friday -- was supposed to remain confidential for three years, but he waived that right through his lawyer.
In the transcript, Guite -- whose title was executive director of the Communications Coordination Services Branch of the Department of Public Works -- told the Commons public accounts committee of the federal sponsorship program's origins prior to the Quebec sovereignty referendum in 1995.
The federalist side won by only about 50,000 votes, leading to near panic in Ottawa.
"We were basically at war trying to save the country," the one-time military man said.
The program was initiated in 1997 and ran until 2002, with Prime Minister Paul Martin formally killing it when he took office in December. Guite retired in 2000.
With Canada's fate hanging in the balance, Guite said most rules were followed, but admitted he bent the rules "a little bit" in his efforts to keep the country together.
Authorization to do so came from the Privy Council Office. It is the head office of the public service and a branch of the Prime Minister's Office.
Guite handled advertising and sponsorship transactions for the public works department.
In his testimony, he admits to meeting once or twice per week with now-disgraced former Public Works Minister Alfonso Gagliano. That contradicts Gagliano, who said they only met three or four times per year.
However, Guite declined to say who, if anyone, served as liason between the Public Works Department and the Prime Minister's Office.
'War' led to program's secrecy
Guite said the veil of secrecy around the program was intended to keep information out of the hands of separatists.
"When you're at war you drop the book and the rules and you don't give your plan to the opposition. You don't leave your plan of attack on your desk," he said.
"I phoned the guys in Montreal - the media people - and I said, 'What's your inventory?' They said, 'Oh, it's about $8 million worth of outdoor advertising that's available.'
"I said, 'I'll buy it.' And the guy at the other end of the phone said, 'Pardon me?' I said, 'I'll buy it.'"
CTV's Mike Duffy said Guite's testimony paints him as a patriot, not a criminal.
"Chuck Guite is not at all ashamed of what he's done," Duffy said. "In fact, he thinks he's a hero."
For Conservative MP Jason Kenney, Guite will make a convenient scapegoat for the Liberals.
"The Liberals will try and spin Guite with the fall guy, the rogue bureaucrat who ran this program," he said.
Guite also said no one told him to use Montreal ad firm Groupaction, and that he retained them because of their good work during the referendum campaign.
The shadowy nature of the sponsorship program was exposed two months ago by Auditor General Sheila Fraser, whose blistering report sparked a wave of public outrage.
Guite's 2002 testimony was the result of an apparent fraudulent triple-billing incident by Groupaction. But Guite dismissed that, saying he had approved additional expenses after the cost of the project was initially underestimated.
He also related an anecdote to display the scope of the federalist ad blitz during the referendum.
Now retired, Guite is scheduled to appear before the committee again around April 22. He is currently vacationing in Arizona and New Mexico.
"You know that testimony is two years old, so its going to be very important as well to hear from Mr. Guite personally," Prime Minister Paul Martin said Friday in Kamloops, B.C.
John Williams, the Conservative MP who chairs the Commons public accounts committee, was looking forward to new testimony from Guite.
"When his friends dropped him, I think Mr. Guite is going to have an entirely different story, his memory will be refreshed," he said.
On Thursday, Martin promised he would not call a federal election before Guite appeared before the committee. That would delay an election call until at least late April, meaning Canadians could go to the polls no earlier than May 31.
With a report from CTV's Joy Malbon
