Jean Pelletier - Sponsorship Scandal and Via Rail Controversy

Sponsorship Scandal and Via Rail Controversy

On May 4, 2001, Chrétien appointed Pelletier chairman of Via Rail, a Crown corporation. Soon after, Chrétien promised an extra C$700 million to improve Via's service.

On March 1, 2004, Pelletier and Via President Marc LeFrançois were fired by Prime Minister Paul Martin and Transport Minister Tony Valeri. Their dismissals were shortly after the Liberal Party became embroiled in the sponsorship scandal. Pelletier was one of four Chrétien loyalists sacked from jobs at Crown corporations by Martin's government during the sponsorship scandal. Via was accused of skipping mandated procedures in order to hand out contracts to Liberal-friendly firms and individuals. Pelletier, however, was not at Via for most of these occurrences, and the Martin government was accused of using an incident as an excuse to remove one of Chrétien's allies. Eddie Goldenberg said that Pelletier "was very hurt about being fired for saying something about Myriam Bédard without being asked for his side. The whole purpose had nothing to do with Ms. Bédard and everything to do with the fact that Mr. Martin didn't like him because he had worked for Mr. Chrétien".

Paul Martin maintained that Pelletier was fired for remarks that he made to Montreal's La Presse newspaper attacking Olympic athlete Myriam Bédard. Talking about Bédard, who had held a marketing position at Via and had gone to the media with stories of corruption, Pelletier said "I don't want to be mean, but this is a poor girl who deserves pity, who doesn't have a spouse, as far as I know." He later reiterated that "She is struggling as a single mother with economic responsibilities. Deep down, I think she is pitiful." This caused an immediate media fracas and the remarks were widely condemned as sexist and out-of-touch by women's groups, sports groups and others.

On March 30, 2004, Pelletier sued Via and the federal government for C$3 million, for defamation and illegal dismissal. A federal court ruled that dismissal did not follow due process and ordered him reinstated in November 2005. Although he was reinstated, the government appealed the court ruling and kept him off the payroll. On December 22, 2005, he was fired a second time, this time after the government ensured that due process was followed. Pelletier has filed suit in Quebec Superior Court alleging wrongful dismissal; Transport Minister Jean Lapierre issued a written statement noting that the recent dismissal is effective immediately and that Pelletier will not receive compensation due to his suit against the government.

After the 2006 federal election, Reg Alcock, the outgoing President of the Treasury Board, did approve $40,000 to assist Pelletier with legal fees in a court challenge against the Gomery Commission. Representatives of other parties criticized this payment, saying that the government should only cover legal costs for working civil servants. Pelletier's lawyer argued that it followed a long-standing government policy for high-ranking functionaries in judicial proceedings.

A Federal Court justice ruled in March 2007 that the Martin government acted improperly in 2005 when it fired Pelletier a second time, immediately after a court overturned his first dismissal as head of Via Rail. Justice Francois Lemieux ruled that then-Transport Minister Jean Lapierre, who fired Pelletier the second time, was biased and failed to follow proper procedures. On November 22, 2007, Judge Hélène Langlois of Quebec Superior Court ruled that government of Prime Minister Paul Martin had acted in a "cavalier and precipitous" fashion when it fired Pelletier. Langloise stated, "that behaviour doesn't meet the standard of diligence expected from a contractor when a contractual relationship is ended. It shows a total lack of consideration". Langlois also mentioned that people refused to walk on the same side of the street as Pelletier while others called him names in public. Pelletier was awarded $235,000 in lost income, and a further $100,000 for damaging his reputation. He had sued for $689,000 in financial losses and $3.3 million for moral damages.

On June 26, 2008, federal judge Max Teitelbaum criticized John Gomery for having a preoccupation with the media spotlight that led him to give interviews he should have eschewed, making comments that indicated he judged issues before all evidence was heard, exhibited bias against Mr. Chrétien, and trivialized the inquiry proceedings. For instance, Teitelbaum pointed out that Gomery's remark halfway through the hearings that "juicy stuff" was yet to come made it appear that evidence of wrongdoing was expected before it was heard. The court threw out the Gomery inquiry's conclusions that Chrétien and Pelletier bore responsibility for the sponsorship scandal.