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Graft report blames former PM Chretien

Former Canadian prime minister Jean Chretien was to be criticized in a report to be released yesterday by a federal inquiry investigating allegations of kickbacks and money laundering by the Liberal Party, a newspaper reported.

The report puts the blame on Chretien but not on Prime Minister Paul Martin, the Globe and Mail reported.

The first report by Justice John Gomery's inquiry into the alleged misspending of tens of millions of dollars in public funds by the Liberal Party and federal bureaucrats is likely to further weaken Martin's minority government, which was nearly toppled earlier this year by the scandal.

At the center of the allegations is a program under Chretien to promote national unity in Quebec following the narrow defeat of a separatist referendum in the French-speaking province in 1995.

The inquiry heard that millions of dollars in a national unity fund went to Liberal-friendly advertising firms to promote the program. The firms apparently did little work in return.

Among others who will be implicated in the scandal are former bureaucrat Chuck Guite, former minister of public works Alfonso Gagliano, Liberal Party fundraiser Jacques Corriveau and Chretien's longtime chief of staff, Jean Pelletier, the newspaper reported.

The Globe and Mail did not report any other details about the findings.

Justice Gomery is expected to issue a final report and recommendations in February.

Martin has vowed to call an election within 30 days of the release of the final report.

Martin has not been implicated in the scandal and is quick to point out that his first piece of business in office was to cancel the unity program, file lawsuits against 19 of the involved firms and demand the inquiry.
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