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Canada's PM under fresh heat in probe

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Published: May 5, 2005 at 4:48 PM

TORONTO, May 5 (UPI) -- Canada's prime minister has come under fresh pressure from newly released testimony about an alleged scandal in a controversial federal program.

Paul Martin, prime minister and Liberal Party leader, set up an inquiry last year amid reports of corruption in the program aimed at curbing support for Quebec separatism, the Toronto Star said Thursday.

Reportedly, the program paid $80 million in commissions to companies that did little or no work between 1997 and 2001.

Chuck Guite, once a top bureaucrat overseeing the program, testified Martin backed a plan guaranteeing federal business for a Liberal-friendly Ontario ad firm.

Guite said Martin's alleged involvement came about when Guite lobbied in 2000 on behalf of Vickers & Benson, the Toronto-based ad firm that was seeking guarantees it would keep all its government business if it was sold.

Guite testified about getting word that Martin, then finance minister, and John Manley, then industry minister, had given their assurance that the firm's business would not be cut.

Martin's office denied Guite's testimony, which came last week but was released Wednesday.

Topics: John Manley, Paul Martin
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