Air Canada Inquiry : The Air Canada Inquiry Commission was established under Order in Council P.C. 963, 25 April 1975, under Part I of the Inquiries Act (R.S.C., c.I-13, 1970) and on the recommendation of a Committee of the Privy Council. The Commission was mandated to inquire into and report upon the system of financial controls, accounting procedures and other matters related to the fiscal management and control of the Corporation and, to determine whether: (a) Air Canada follows a system of financial controls that is appropriate for a corporation of its size and undertaking, acknowledging that it is a Crown corporation ultimately accountable through the Minister of Transport to Parliament for the conduct of its affairs; (b) any misapplication, improper handling or misuse of the funds of Air Canada has occurred in contravention of its existing financial control policies and procedures as approved by the Board of Directors, or in violation of any legislation; and (c) if such incidents did occur, whether they were brought to the attention of senior management and if they were they handled effectively and promptly and, in particular, if senior management took appropriate action within a reasonable time to secure redress. The Commissioner was Willard Zebedee Estey and the Secretary was H. Jory Kesten.
A federal inquiry into fiscal controls and accounting procedures at Air Canada resulted from allegations of inadequate financial administration in the following transactions: (1) In November 1974, Air Canada's Marketing Branch paid 00,000 to Robert McGregor of McGregor Travel to obtain the option of acquiring shares of McGregor Travel and for other services; (2) Venturex Limited was incorporated by the Canadian National Railway Company at the request of Air Canada for the purpose of conducting charter operations for Air Canada; (3) During 1973-1975 Venturex Limited, and later Air Canada, became the lessee of a group of villas, condominiums and apartments in Barbados in a development known as Sunset Crest Rentals Limited; and (4) Air Canada's former vice president of marketing, Yves Menard, who was responsible for the negotiation of leases and their rentals with Sunset Crest Rentals Limited in Barbados, purchased a villa at the Sunset Crest development (see Air Canada Inquiry: Report, Ottawa, Information Canada, 1975, pp. 1-9).
Hearings of the Commission were held in Montreal from 30 April to 24 July 1975. 304 exhibits were filed with the Commission. RG33-10 General Inventory
