Prime Minister Jean Chrétien's involvement with the BDC's $615,000 loan:
The granting of the BDC's loan to Yvon Duhaime

Nipawin - December 6, 2000 - by: Mario deSantis

loan scheme

So we have left our Grand Mère's story just prior to the granting of the BDC's loan in early
1997(1). We have seen how Yvon Duhaime, a Chrétien's friend, was able to recover from near
bankruptcy in 1993 when he bought the Grand Mère's Inn from Jean Chrétien and his partners,
and how with a pyramidal loan scheme he was able to buy and carry his hotel business till 1996.



for money

He is now desperate for money, he owes some $890,000 to the local caisse populaire and he is
defaulting in meeting his financial obligations. But he is lucky, he needs another project, bigger
than any other, so that he can carry a bigger business, and then with some additional doling
from his friend Chrétien, he may even be able to purchase again his own mortgaged assets.



patterns and relationships

Anyhow, we are gathering the events surrounding Chrétien's involvement in the Grand Mère's
story so that we can find a truth on his ethical behaviour. And since a truth is found in terms of
patterns and relationships I will be listing a set of relevant events and their possible relationships
within the Grand Mère's affair. The events outlined below have retained, as much as possible,
the same English construct as per the original references.




1997: The BDC's approval of the $615,000 loan to Duhaime was a breach of the
established procedures at the bank and these are some of the
worrisome facts:


-A month before the loan to the hotel owner was granted, a management consultant's report concluded that the inn had huge mortgage debts it could not afford to pay, was poorly managed, had another $350,000 in unpaid bills and had defaulted on its mortgages.




-Mr. Duhaime failed to disclose his criminal record for death threats, income-tax offences, assault and repeat drunk driving in his BDC loan application as required.




-Ms. France Bergeron, the BDC's regional branch manager, has stated in an internal memo that the structure of the financing recommended does not meet the normal policies and criteria of the bank(2)



loan for $615,000

1997: On February 20, Chrétien makes his third phone to Mr. Beaudoin,
president of the Business Development Bank of Canada
(BDC), and ask when the loan would be approved for the
scaled-down version of the Auberge/hotel Grand-Mère. Mr.
Duhaime has stated that it was during this time that he met
with the Prime Minister at 24 Sussex, however, he has stated
(November 2000) that he cannot divulge any information
about this meeting unless he receives permission from Mr.
Chrétien. Denise Tremblay, Mr. Chrétien's special
representative in St. Maurice, also made four calls to the office
of François Beaudoin, then president of the BDC, at his
headquarters in Montreal about the Grand-Mère Inn case and
attended meetings Mr. Duhaime had with local BDC officials.
After Chrétien's third phone call to Beaudoin the BDC bank
approves a loan for $615,000 to Duhaime. Mr. Duhaime's
previous attempt to secure a $2-million BDC loan for the
hotel's expansion had been rejected.
  In the next related articles we will cover a web of relationships connected with the Grand-Mère's
business and political environment.
  List of relevant political and economics articles
  The author 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, Joël-Denis Bellavance, Peter Shawn Taylor, Andrew Coyne, Gordon Gibson, 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.


Prime Minister Jean Chrétien's involvement with the BDC's $615,000 loan: The Grand Mère affair and Chretien's golf course just prior to the loan's approval, By Mario deSantis, December 4, 2000




PM lobbied for disputed loan, Andrew McIntosh, November 16, 2000, National Post