Charbonneau commission finds corruption widespread in Quebec's construction sector

The commission charged with investigatingcorruption in Quebec's construction industryhas tabled its report, which includes 60 recommendations, including protection forwhistleblowers, reforms to political donation rules and stiffer penalties for companies and individualswho break the law.

Thereport was delivered to Liberal Premier PhilippeCouillard'sgovernment today andsimultaneously released to the public.

In her report,Justice France Charbonneauconcluded corruption and collusion are "far more widespread than originally believed."

In a prepared address in Montreal,Charbonneausaid the commission, which investigated the awarding of government contracts and influence peddling in the construction sector, found that organized crime had indeed infiltrated the industry.

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She said the government must do everythingit can to put a stop to thatandprotect thelegal economy. She said the impact of allowing it to continuewould be devastating longterm.

The 1,741-pagereport contains 60 recommendations for the Quebec government.

• Read the full report here (in French)

The recommendations include:

• Creation of an independent authority to oversee public contracts.
• Better protection for whistleblowers.
• Requirement that construction companies report acts of intimidation or violence.
• Increased penalties for construction companies that break the law, up to and including cancellingtheir licence under Quebec's building authority, laRgie du btiment du Qubec.
• Increased penalties for people who make use of so-called "strawman" schemes.

Significant sections of the report have been blacked out because of criminal cases currently before the courts.

Praise for whistleblowers

The public inquiry heard from 291 witnesses over 261 days of testimony generating 66,000 pages of transcripts.

Charbonneau praised witnesses for their courage in coming forward, singling out some, likea former employee of the FTQ labour federation'sconstruction workers' union, Ken Pereira, who blew the whistle on illegal activities within his own union.

"Whistleblowing must not be seen as an act of betrayal,but as an act of loyalty to society," Charbonneau said.

She said it's difficult, without whistleblower protection, for the province to detect collusion or corruption because it doesn't have the proper tools.

The report calls on the government to improve protectionfor whistleblowers, including shieldingtheir identities andproviding more support for their efforts, as well as providingfinancialsupport, when required.

The report recommends enacting a law similar to New York State's False Claims Act, under which companies and individuals who defraud the government may be found liable and whistleblowersare eligible for compensation for their efforts.

Several recommendations focus on reforms to political financing rules, including removing tax credits for political contributions.

The Quebec minister responsible for democratic institutions, Jean-Marc Fournier, told reporters in Quebec City the province will take steps to followup on the recommendations.

He said the recommendations apply to all political parties,not just the Liberals.

Commissioners split overkey finding

The commission concluded that in the years leading upto 2011, a link existed between political party financing and the granting of subsidies and public contracts, calling the practice deep rooted and systemic.

However, Charbonneau's fellow commissioner, former provincial auditor general Renaud Lachance, distanced himself from that finding.

Lachance wrote that the only pertinent question is whethera political donation led directly to the awarding of a contract.

He said company directors as well as both Liberal and Parti Qubcois politicianswere all asked that question, and they all answered, "no."

However,Lachance said he ultimatelyagreed with the recommendationsto reformpolitical party financing.

4 years of investigation and testimony

JeanCharest'sLiberal government launched theinquiry into corruption in Quebec's construction industry in 2011, in response to mounting pressure,two years after a Radio-Canada investigation into corruption within the province's biggest construction union touched off a media storm.

Today in Quebec City, the province's Liberal Premier PhilippeCouillardsaid his government will "closelystudy the recommendations."

He said the problems go beyond the Liberals.

"I think it's the political class in general," he said.

He said his government has acted and will continue to act to crack down on corruption.

"The level of vigilance has to remain high," he said.