Feds stay out of Mafia probe
October 24, 2009 by The Boss · Leave a Comment
A scandal involving the Mafia, politics, and Quebec’s construction industry echoed in the nation’s capital yesterday as the federal government nixed the idea of getting deeply involved in the case.
Justice Minister Rob Nicholson said the federal government would steer clear of provincial investigations into an alleged scam that has rocked Quebec and raised concerns about a massive waste of public tax money.
The federal and provincial governments have fended off calls for a public inquiry. The mayor of Montreal has said he fears for his family’s safety.
And reports suggest the mob has helped set up what amounts to a construction cartel in Quebec, driving up the cost of public-works contracts in a practice that Mafia observers say exists elsewhere in the country.
The scandal arrives at the precise moment that the federal and provincial governments embark on a multibillion-dollar round of infrastructure spending that is the most expensive in Canadian history.
Nicholson said he’s confident that the Quebec government can handle the investigation on its own. The province has set up a three-year, $26.8-million police investigation, which Nicholson called “an appropriate way” to handle the issue.
The participation of two RCMP specialists on the Mafia and the federal Competition Bureau will be the extent of Ottawa’s involvement.
“My understanding is that the government of Quebec has launched an inquiry into this and we’ll leave it at that,” Nicholson told a news conference.
“The administration of justice is within provincial jurisdiction for the most part and so I think things are proceeding as they should.” The minister did not address the possibility that federal infrastructure money may be involved in the scandal, in which 14 Montreal-area firms are alleged to be involved in a price-fixing scheme.
A retired Quebec bureaucrat-turned-whistleblower has said outside firms would be intimidated and shut out while participating companies would alternately set the bid price on contracts.
The rest would then submit higher bids. And, finally, the Mafia would collect briefcases full of cash as a commission.
The collusion is reported to have driven up the price of public-works projects in the Montreal area by 35 per cent.
The French-language arm of the CBC, Radio-Canada, interviewed a provincial bureaucrat, the federal Competition Bureau, and players in the construction industry for a wide-ranging report last week.
One of the contractors singled out by Radio-Canada as having a great amount of influence is in turn suing the network.
Antonio Accurso said in a statement that he is suing the network and journalist Alain Gravel for $2.5 million for sullying his reputation and breaching his right to privacy during an earlier investigative program that examined links between Accurso and a union boss.
The Montreal businessman, whose name has also been linked to numerous politicians in recent months, is calling for an apology.
Accurso is also a central figure in Montreal’s scandal-plagued, $355 million water-meter contract — the most expensive in the city’s history.
Mayor Gerald Tremblay has come under fire for the inflated contract, which was cancelled after a scathing report by the city’s auditor general.
Even the opposition party at city hall has been dragged into the affair. The opposition’s No. 2 was forced to resign this week after reports of his ties to Accurso.
After resigning, Benoit Labonte — who once served on the city’s executive council — said Montreal’s political structure was “rotten” and “gangrenous” and riddled with Mafia-related corruption. He admitted to receiving money from Accurso during his leadership bid for the Vision Montreal party.
Labonte also alleged in an explosive interview this week that Quebec politics is rife with influence-peddling and dubious fundraising practices.
Both the mayor and his chief opponent moved to distance themselves from Labonte’s comments.
Quebec’s director general of elections urged Labonte to come forward with more information that might substantiate his claims Friday.
The province has assembled a unit of specialized officers who will oversee the corruption investigation, dubbed “Operation Hammer.”
Source: timestranscript
Related posts:
- Montreal Mafia controls 80 per cent of road contracts, whistleblower says The alleged plans for fixing bids among Montreal construction...
- Feds seize $4M from Mafia middleman Ray Kahno MONTREAL – Ray Kanho was the ultimate middleman. Fluent in...
- Alleged Montreal mob boss pleads to stay in Canada Moreno Gallo, named as an influential leader within the Mafia...
- Mafia war brewing in Montreal Who’s been firebombing all those Italian cafés in Montreal? The...
- Canadian hit man pleads guilty to 27 murders MONTREAL – A Canadian hit man whose victims included outlaw...
Related posts brought to you by Yet Another Related Posts Plugin.