Prime Minister Jean Chretien's involvement with the BDC's $615,000 loan
Part 5. Mr. Gauthier, Chretien's golf course, and the pair Pepin & Lemire Co.

Nipawin - December 12, 2000 - by: Mario deSantis

personally intervened

As we have mentioned in our previous articles, we find our truths of our own behaviour by
finding patterns and relationships of our own experiences or events. The doling of money
by the Chretien's government and the related auditing by the Auditor General(1), has put
some light on the need to restore integral values in our governmental administration(2).
There have been accusations by the opposing political leaders, that Chretien's behaviour was
unethical when he personally intervened for the granting of a $615,000 loan by the Business
Bank of Canada (BDC) to the Grand Mere Inn owned by Yvon Duhaime. We have also
found out by a governmental official that in 1997, Chretien personally approved a HRDC
grant for $600,000 to the Auberge des Gouverneurs hotel in Shawinigan(3) owned by Pierre
Thibault, a self confessed criminal. Today, we are going to provide some additional wheeling
dealings of Chretien's friends.
Chretien's friend Mr. Claude Gauthier

Claude Gauthier

In March 1998, some $1.2 million in grant money from the Human Resources Department
was paid into a trust fund for eventual disbursement to Placeteco, a plastics manufacturer
owned by Chretien's friend Claude Gauthier. The deal violates department spending rules
and the HRDC job grant was provided even though Placeteco was before bankruptcy court
at the time and was ineligible for the money. Placeteco was later under RCMP investigation
over allegations that the cash went to cover a bank loan rather than to create jobs. This Claude
Gauthier, is the same Gauthier who in 1997 got a $6.3 million contract from the Canadian
International Development Agency for his company Transelec. And, I forgot to say that
this same Gauthier who in 1996 bought a parcel of land adjacent to Chretien's golf course,
also received a $600,000 grant(4), possibly to create additional amenities for Chretien's
golf course.
Chretien sells his golf course in October 1999


Chretien's golf course shares were finally sold in October 1999 to a new buyer, millionaire
pharmacy owner Louis Michaud of Montreal. Chretien's share in the golf course were sold
after millions of dollars of governmental disbursed funds had been spent to increase the
surrounding private amenities of the course.
Chretien's friends: the Shawinigan pair PÈpin & Lemire Co

Mr. Pepin
Mr. Lemire

Mr. Mario Pepin and Mr. Paul Lemire, two businessmen in Mr. Chretien's riding of St.
Maurice, have been charged of theft and fraud by the RCMP. Mr. Pepin is a veteran Liberal
organizer and supporter of Mr. Chretien in St. Maurice, while Mr. Lemire is also a long-time
supporter of the Prime Minister and accompanied Mr. Chretien on a trade mission to Asia in
1996. The business pair have since 1995 used up to $300,000 of federal grant money to cover
personal expenses such as restaurant meals while they ran Groupe Forces.


We recall that Groupe Forces was an investing partner in Mr. Duhaime's hotel expansion. In
addition, Mr. Pepin and Mr. Lemire were charged with theft and fraud last July for allegedly
misusing $150,000 in federal job creation money that was awarded to the Canadian Institute
of Tourism and Electronic Commerce (CITEC). Mr. Pepin and Paul Lemire used their
positions at Groupe Forces to create the defunct CITEC, which itself had received $7-million
in HRDC money before it went out of business this fall. Group Forces was created as an
umbrella company to spur economic development, and this company received some $4-million
from different federal organizations. And Groupe Forces won an Industry Canada contest last
spring designed to promote "smart communities," or projects that expand the use of the Internet.

Industry Canada

One must wonder what kind of criteria Industry Canada uses for recognizing our best
communities of business practice. Mr. Pepin and Mr. Lemire used their executive positions
with Group Forces to create more companies for the purpose to pocket governmental money
rather than create new jobs. Besides CITEC, Lemire and Pepin created ARC Inc. supported
solely by federal government grants. We don't know much about the kind of relationship the
Shawinigan pair entertained with Industry Canada, what we know is that Mr. Lemire had
previous relationships with the RCMP and Revenue Canada, respectively for fraud and tax
evasion(5). However, we know that Industry Canada has recently suspended a $277,000 grant
directed to ARC. Inc. as the Shawinigan pair were getting closer to Jean Chretien's entourage.
  List of relevant political and economics articles
  The author can provide specific references of the cited events in the Grand-MËre's affair. He also acknowledges the following news organizations: National Post, Canadian Internet Network, The Ottawa Citizen, The Globe and Mail, Canadian Press. The author read articles written by Robert Fife, Andrew McIntosh, JoÎl-Denis Bellavance, Peter Shawn Taylor, Andrew Coyne, Gordon Gibson, David Frum, and Diane Francis of the National Post; Paul Adams and Daniel LeBlanc of The Globe and Mail; Lawrence Martin and Kate Jaimet of The Ottawa Citizen.


2000 Report of the Auditor General of Canada, Chapter 2 - Human Resources Development Canada - Service Quality at the Local Level,




2000 Report of the Auditor General of Canada, Chapter 12 - Values and Ethics in the Federal Public Sector




Shawnigan is the home town of Mr. Jean Chretien




Scandal industry gives PM an easy ride, David Frum, December 9, 2000, National Post




Crown weighs more charges in PM's riding. Fate of long-time ChrÈtien supporters hangs in the balance, Kate Jaimet, November 24, 2000, The Ottawa Citizen