Former Chretien chief of staff dies

Jean Pelletier, one of former prime minister Jean Chretien's closest confidants and a focal point of the Gomery commission, has died in Quebec City at the age of 73.

Jean Pelletier died Saturday morning at the Maison Michel-Sarrazin, a hospice for cancer patients in the final stages of their disease.

Before he died, the former mayor of Quebec City was visited by friends and family, along with current mayor Regis Labeaume and Chretien, his old colleague.

Pelletier was a well-known figure in the provincial capital, which UNESCO recognized as a world heritage site under his leadership.

But while he had many successes during his political career, the one-time journalist became a well-known national figure during the federal sponsorship scandal.

The former Chretien chief-of-staff was criticized by retired judge John Gomery, who conducted a probe into the scandal in which ad agencies were paid large sums by the Liberal government for little or no work.

Justice Gomery said that Jean Pelletier and Jean Chretien bore some responsibility for the scandal, but in the summer of 2008, a federal court struck down the finding. His friend Eddie Goldenberg told The Canadian Press that the decision was a "total vindication" for Pelletier and Chretien.

Jean Pelletier also went to court after former prime minister Paul Martin fired him from his job as head of Via Rail in 2004. He was let go after he called Olympic gold-medal winner Myriam Bedard a "pitiful" single mother and attention-seeker after she alleged there were ties between Via and the sponsorship scandal.

Pelletier apologized for his remarks. He also sued Ottawa for the dismissal and for damage to his reputation. In November of 2007, he was awarded more than $335,000 in moral damages.

Political analysts at one time described Pelletier as one of Canada's most powerful men.

Observers described him as an elegant and polite man, who could also be dictatorial. Friends and foes alike said he had an iron fist in a velvet glove, earning him the nicknames the "elegant executioner" and "velvet executioner."

He was an officer of the Order of Canada and the Order of Quebec. He was also a commander of France's Legion of Honour.

"Jean Pelletier was a man of great integrity who served his city, his province and his country with enormous dedication and integrity all of his life," said Goldenberg.

Pelletier is survived by his wife Helene and their two children, Jean and Marie.

Chinese company at the root of tainted milk scandal declared bankrupt

A Chinese court has declared the company at the center of a tainted milk scandal bankrupt.


The milk is blamed for killing six children and sickening nearly 300,000 more.

New Zealand's Fronterra Group said that a court in Shijiazhuang, in China's Hebei province, issued a bankruptcy order against Sanlu Group Co. in response to a petition from a creditor.

"Sanlu will now be managed by a court-appointed receiver who will assume responsibility for an orderly sale of the company's assets and payment of creditors," Fonterra chief executive Andrew Ferrier said in a statement.

Sanlu was one of 22 Chinese dairy companies whose products were found to contain high levels of the industrial chemical melamine, leading to the deaths of six babies and causing 294,000 others to suffer from urinary problems.

Fronterra, a New Zealand farmer-owned co-operative, owns 43 per cent of Sanlu.

At least a dozen individual lawsuits have been filed against state-owned Sanlu, but they're caught in legal limbo as courts have neither accepted nor refused the cases - a sign of the scandal's political sensitivity.

China's government has promised to provide free medical treatment to the children who fell ill due to the milk, along with unspecified compensation to them and families of the deceased.

The Health Ministry had said earlier this month that some Chinese dairy companies would likely have to pay for a compensation plan, the details of which have not been released.

Fronterra was responsible for alerting Chinese authorities to the tainted milk scandal in August.