Federal Accountability Act

The Federal Accountability Act (FAA) is a law aimed at increasing fiscal transparency and oversight in the Canadian government. Passed in 2006, the law bans large donations to political campaigns and causes by private citizens, corporations, and unions. In addition to implementing new rules related to political fundraising, the legislation created the Parliamentary Budget Office, which provides Parliament with independent economic analysis of fiscal and economic policy. The FAA also instituted new protections for whistleblowers, strengthened the auditing of public funds, and improved the legal apparatus in place to investigate allegations of corruption.

Overview

The main impetus for the passage of the FAA was the 2006 sponsorship scandal that affected Canada’s Liberal Party in 2006. Also known as “AdScam” and “Sponsorgate,” the scandal involved the Liberal government supplying unchecked funding to advertising companies as part of a government publicity campaign to counter the claims of the Quebec independence movement. It was eventually revealed that several million dollars worth of funding was transacted in exchange for little or no work. The ad program was initiated in 1996, but was not discovered to be corrupt until 2004. The investigation into the program cost the Canadian government an estimated $14 million.

The scandal caused significant political damage to the Liberal Party, which lost power in Canada’s 2006 federal election after twelve years in power. As part of their election mandate, Conservative Party officials introduced the FAA in their effort to improve government transparency. The FAA includes amendments and provisions to over fifty existing acts of the Canadian Parliament, including the Access to Information Act, the Financial Administration Act, and the Federal Courts Act.

The FAA was crafted in accordance with a committee white paper entitled “Federal Accountability Action Plan.” Minister John Baird, then president of the Treasury Board, oversaw the work of the committee and introduced the final bill to Parliament. The bill represents one of the most significant and thorough attempts at addressing issues of government information access, conflicts of interests, financial accountability, and lobbying in Canada’s history. Because the legislation was so far reaching and dynamic, many of its features did not become law until 2007.

The FAA is not without its critics, however. In 2008, Judge John Gomery, who wrote the final report on the sponsorship scandal, criticized Prime Minister Stephen Harper and his Conservative Party colleagues for failing to implement Gomery’s recommendations regarding political interference in the operations of government. Ending the prime minster’s ability to appoint deputy ministers and increasing funding for government-spending watchdogs were among the recommendations Gomery felt were being ignored by the Harper government.

Bibliography

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Brennan, Richard. “Tories’ Cronyism Rampant, Critics Say.” Toronto Star. Star Media Group, 1 Jan. 2008. Web. 14 Oct. 2013.

“Gomery Blasts Government for Lack of Response.” CTV News. Bell Media, 13 Mar. 2008. Web. 14 Oct. 2013.

Hume, Jessica. “PM Harper Recognizes Creator of Federal Accountability Act.” Sun News Network. Quebecor Media, 22 Jan. 2013. Web. 14 Oct. 2013.

Radia, Andy. “Liberal Party Slowly Shedding the Ghosts of the Sponsorship Scandal.” Yahoo! News Canada. Yahoo News Network, 31 Mar. 2013. Web. 14 Oct. 2013.

“Sponsorship Scandal: Breaking All the Rules.” CBC. Canadian Broadcasting Corporation, n.d. Web. 14 Oct. 2013.

Warren, R. Michael. “Canada’s New Budget Watchdog Won’t Hunt.” Toronto Star. Star Media Group, 10 Sept. 2013. Web. 14 Oct. 2013.

Veniez, Daniel D. “Sponsorship Scandal: Time to Exorcise the Demons.” Vancouver Observer. Observer Media Group, 12 Jan. 2011. Web. 14 Oct. 2013.