corruption squad is to be set up in construction industry

Montreal’s former opposition party leader admits he lied when he denied meeting the construction entrepreneur involved in the city’s water-meter scandal, Radio-Canada reported Wednesday.

The French-language service of the CBC said it will air a full interview with Benoît Labonté on Thursday in which he admits having met with Tony Accurso and paints a portrait of widespread political corruption.

Meanwhile, the Quebec government will announce the creation of a special squad to investigate allegations of collusion in the construction industry, Radio-Canada reported.

The announcement will be made Thursday at provincial police headquarters in Montreal by Public Security Minister Jacques Dupuis along with Revenue Minister Robert Dutil and Labour Minister Sam Hamad, the TV network said.

According to reports, the squad will bring together police and a specialized team of Crown prosecutors to look into allegations of corruption across the province.
Calls for inquiry

Political pressure for the government to launch an inquiry into the allegations of corruption mounted Wednesday as the opposition parties at the national assembly tabled a motion demanding a full public inquiry.

Liberal Premier Jean Charest reiterated that several police investigations are underway and the government will wait for the results.

"If we need to go further, we will," Charest said.

But Parti Québécois Leader Pauline Marois suggested ethical problems go all the way to the top levels of government.

She said Charest put himself in a compromising position when he took a trip to Mexico nine years ago, paid for by the Canadian Construction Association.

"It was unacceptable to accept these airplane tickets from the construction industry," said Marois.

Officials in the premier’s office said Charest did nothing wrong. Charest, who was provincial Opposition leader at the time, travelled to Puerta Vallarta to give the keynote speech at an annual industry conference, they said.

The calls for an inquiry follow media reports alleging a small number of construction firms have been working with organized crime to drive up the cost of public works contracts.

The reports come in the wake of a series of scandals that have rocked the campaign ahead of Montreal’s Nov. 1 municipal election.
Early warnings

On Wednesday, two former Vision Montreal officials said they had tried to warn party leader Louise Harel about their suspicions about Labonté, former Vision leader and mayor of Ville-Marie borough.

But former party director Robert Laramée and Christine Hernandez, former secretary general for the party’s leadership race, said Harel rebuffed their attempts.

Over the weekend, Labonté was forced to step down as opposition leader following allegations of questionable fundraising practices during the leadership race for the Vision Montreal Party in 2008.

Labonté had denied allegations he met with Accurso.

Accurso’s company Simard-Beaudry was part of the consortium that was awarded the city’s $355-million water-meter contract — the biggest ever signed by the city.

Last month, Mayor Gérald Tremblay was forced to cancel the contract following a damning report from the city’s auditor general.

The auditor launched the investigation following revelations that Tremblay’s former right-hand man — former city executive committee chairman Frank Zampino — had vacationed on Accurso’s yacht.

Harel cancelled her public appearances Wednesday and Vision Montreal officials declined calls for comment. Tremblay's party is Union Montreal.