The Harper government is recovering $350,000 in fees that it says were inappropriately paid to a lobbying firm chaired by former Liberal cabinet minister David Dingwall.
The money was paid in November 2001 by a pharmaceutical company now owned by GlaxoSmithKline, which was awarded a 10-year multimillion-dollar federal contract to provide seasonal flu and pandemic vaccines.
"This fee was paid in breach of a contract provision prohibiting contingency fees under the contract between Public Works and Government Services of Canada and Shire Biochem Inc. to provide seasonal-flu and pandemic vaccines, when required, over a 10-year period," Public Works Minister Rona Ambrose said yesterday in the House of Commons.
Since its contract was with the pharmaceutical company, the government cannot recover the fees directly from the lobbying firm, but it is negotiating with GlaxoSmithKline to recover the money with interest. Ambrose said the government also decided to ask the federal lobbying commissioner to look into the matter.
Dingwall was chairman and CEO of Wallding International from 1997 to 2003 after he was defeated in an election. The firm was hired by BioChem Vaccines Inc. to provide "strategic advice in developing a strategy and action plan" to help the pharmaceutical company obtain "a long-term contract valued at approximately $100 million to $240 million with Public Works and Government Services Canada." Ambrose said evidence of the fees being paid in November 2001 were uncovered during a routine audit.
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The Harper government is recovering $350,000 in fees that it says were inappropriately paid to a lobbying firm chaired by former Liberal cabinet minister David Dingwall.
The money was paid in November 2001 by a pharmaceutical company now owned by GlaxoSmithKline, which was awarded a 10-year multimillion-dollar federal contract to provide seasonal flu and pandemic vaccines.
"This fee was paid in breach of a contract provision prohibiting contingency fees under the contract between Public Works and Government Services of Canada and Shire Biochem Inc. to provide seasonal-flu and pandemic vaccines, when required, over a 10-year period," Public Works Minister Rona Ambrose said yesterday in the House of Commons.
Since its contract was with the pharmaceutical company, the government cannot recover the fees directly from the lobbying firm, but it is negotiating with GlaxoSmithKline to recover the money with interest. Ambrose said the government also decided to ask the federal lobbying commissioner to look into the matter.
Dingwall was chairman and CEO of Wallding International from 1997 to 2003 after he was defeated in an election. The firm was hired by BioChem Vaccines Inc. to provide "strategic advice in developing a strategy and action plan" to help the pharmaceutical company obtain "a long-term contract valued at approximately $100 million to $240 million with Public Works and Government Services Canada." Ambrose said evidence of the fees being paid in November 2001 were uncovered during a routine audit.
http://www.montrealgazette.com/health/Ottawa+recovering+from+Dingwall+lobbying+firm/2732518/story.html#ixzz0jabo7VdO
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