October 23, 2009

Corruption scandal

Gomery calls for probe into alleged Mafia links to Quebec construction

Premier resists repeated demands for an inquiry

MONTREAL

The man who led a historic inquiry into political corruption thinks another one is necessary amid allegations of criminal acitivity in the construction industry and municipal politics.

Following reports of Mafia links to construction companies in Quebec, collusion between company bosses, and ties to municipal politics, retired justice John Gomery says a probe is necessary.

The head of the famous Gomery inquiry into the federal sponsorship scandal demanded that Premier Jean Charest convene a provincial probe.

Mafia experts describe such corruption as a national occurence but so far governments at the federal, provincial, and municipal level have been resistant to the idea of a probe.

Gomery made the request at a news conference alongside the man he’s backing for mayor of Montreal, Richard Bergeron.

The retired judge said large donors wield too much influence when it comes to the awarding of municipal contracts, and that an inquiry could explore those links.

“The need of political parties for large sums of money is a problem for democratic institutions,” said Gomery, a former justice of the Quebec Superior Court.

Gomery said the mandate of the proposed inquiry wouldn’t be limited to Montreal, as donations that lead to favourable contracts in one municipality often extend to others as well.

The renewed call for a public inquiry comes after an explosive report last week on Radio-Canada’s investigative show “Enquete,” which highlighted extensive Mafia control over infrastructure spending.

The report alleged that up to 80 per cent of the road construction contracts in Montreal are controlled by the powerful Italian Mafia.

Price-fixing and collusion between about 14 companies has driven up the price of infrastructure contracts in the Montreal region 35 per cent higher than they should cost, the report said.

Federal parties have refused to weigh in. The governing Conservatives called it a provincial matter last week, the NDP refused to comment, and the Liberals never responded to a request for a reaction.

Charest has resisted repeated calls for an inquiry from the opposition in Quebec City. The premier said he preferred to wait for police to complete a number of investigations into the construction industry.

But Gomery replied that police have limited powers and act in secret, while the general public is demanding transparency and answers.

“With great respect for Mr. Charest, he’s doing what politicians often do which is to say, ‘Let’s leave it to the police,’ and hope that the problem goes away,” Gomery said.

Municipal Affairs Minister Laurent Lessard told the provincial legislature on Tuesday that he hopes to toughen the rules forcing municipalities to co-operate with investigations.

And Claude Bechard, the minister in charge of democratic reform, said that the government will table legislation before the end of the year to cap donations to leadership contenders.

Bechard said the reforms were already in the works before a number of scandals hit the Montreal mayoral campaign.

On the weekend, Benoit Labonte, the former leader of the opposition at city hall and onetime aide to Paul Martin, quit less than two weeks before the vote after allegations of shady funding of his political activities.

Still, Gomery said the responses have not gone far enough.

“I think it’s a Band-Aid rather than treating the patient as a whole,” Gomery said. “I think there is a systemic problem that has to be dealt with.”

Gomery, a long-time jurist, is best known for the work he did while leading the inquiry on the sponsorship scandal.

Gomery reported that millions of taxpayer dollars had been skimmed by Liberal-friendly ad agencies and that some of the cash had flowed back to the party in under-the-table kickbacks.

His inquiry helped bring down Martin’s minority Liberal government.

But last year, the Federal Court dismissed the inquiry’s conclusion that former prime minister Jean Chretien and his top aide bore responsibility for the scandal.

-RCD Digital Media

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