This sendmail configuration does appears to have been configured to relay all email regardless of addresses involved. A UCE attacker may use this mail relay to send their unwanted email, implicating the Ottawa Sun in their scheme.
Aside from the embarassment at being involved in any kind of email based marketing scheme, this will most certainly result in a complete denial of service from the email load, and may take many days to clean up after each incident.
It is strongly recommended that anti-relaying provisions be put in place. Sendmail 8.9 has this provision installed by default, so an upgrade will take care of this problem.