Laval wants to be repaid for money lost to collusion - Action News
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Montreal

Laval wants to be repaid for money lost to collusion

The City of Laval could recover up to $100 million lost in embezzled government contracts under the reign of Gilles Vaillancourt, the current mayor said.

Companies responding well to letters asking for 20% of contract costs to be returned

Laval sent 200 letters asking to be reimbursed for over-charged contracts. (Vincent Champagne/Radio-Canada)

The City of Laval could recover up to $100 million lost in embezzled government contracts under the reign of Gilles Vaillancourt, the current mayor said.

Mayor Marc Demers says companies have responded well to the 200 formal notices sent last year, but won'ttalk publicly about the amounts being discussed behind the scenes.

The rebate is the result of Bill26, which was passed unanimously last year, and allows companies and individuals found guilty of collusion to avoid lawsuits and clear their reputations. Companies can also confess to wrongdoing and repay the government as part of a mediation process.

"With this bill, the burden of proof is reversed," Demers said. "When an individual or a company is convicted of collusion or fraud, we consider that 20 per cent of the amounts paid by the city in the contract were stolen."

The city of Montreal has also made use of the law and last year mailed letters to 380 companies it had dealings with since 1996, asking to be reimbursed.