Alfonso Gagliano has been sacked as Canada's ambassador to Denmark and ordered home to answer questions about the scandal-plagued federal sponsorship and advertising program in Quebec. In an effort to limit the political damage, Prime Minister Paul Martin has ordered an independent public inquiry to be headed up by a Quebec judge. The commission will have broad powers to investigate where millions of dollars went. That includes allegations of a kickback scheme involving money being funnelled back to the federal Liberal Party's Quebec wing.

Martin told reporters the auditor general had painted a "disturbing picture" and described the conduct surrounding the spending orgy as "unacceptable and intolerable." He vowed "to hold those responsible to account."

Just 60 minutes before the damning report was tabled yesterday, Foreign Affairs released a terse two-line statement that said "The assignment of Alfonso Gagliano as Ambassador to the Kingdom of Denmark has been withdrawn. Mr. Gagliano has been asked to return to Canada."

3 WEEKS TO RELOCATE

Attempts by Sun Media to contact the former public works minister at his Copenhagen office were unsuccessful. He has been given three weeks to relocate and will continue to be paid while a financial settlement is worked out.

Foreign Affairs Minister Bill Graham told reporters "it is clearly not appropriate for him (Gagliano) to continue as our ambassador" while he focuses on clearing his name.

Gagliano first came under fire in August 2000 for awarding contracts to Quebec advertising companies. Gagliano left the cabinet two years ago and was appointed ambassador to Denmark by Jean Chretien.

But before he left, he made it clear he didn't do anything against the wishes of Chretien, telling a reporter, "He's the boss. I served the way he wanted me to serve."

The government has hired a special counsel who will try to recover some of the money improperly received by certain parties involved in the sponsorship program.

As well, the Martin Grits are moving on whistle-blower legislation to protect those who come forward to report mismanagement or abuse in government and a review has been launched into Crown corporation governance.