Montreal city hall run by Mafia-like system: ex-opposition leader

Montreal's former opposition leader says the city's political system is run by a Mafia-like system and his opponents know it.

On the weekend, Benot Labont was forced to resign from his party and drop out of the campaign for the citys Nov. 1 election over allegations he met with, and accepted donations from, a controversial construction entrepreneur.

Labont initially denied the allegations.

Now, in an interview with Radio-Canada, Labont has admitted he lied.

He said he did so in order to protect the Vision Montreal Party and for fear of reprisals.

Labont said he is now coming clean in an attempt to salvage his reputation saying he wont be a scapegoat for a system that is rotten.

Unethical practices

In the interview, recorded at a secret location outside Montreal, Labont acknowledged that while not illegal, accepting money from construction entrepreneur Tony Accurso was unethical.

Though political leadership races are not governed by the provinces chief electoral officer, Quebec election law only permits donations to political parties from individuals, not from corporations. Also, those donations must be made by cheque.

Labont also described how parties get around the law by recycling corporate cash donations to individuals who would return the money through cheques.

Labont said the practice is used "in all the parties, municipal and provincial," and is still ongoing at Vision Montreal.

"Is there a mafia-like system that is running the city of Montreal, the answer is yes," said Labont.

Mayor knew: Labont

Between 2005 and 2007, Labont was a member of Mayor Grald Tremblays Union Montreal Party.

During that time, Labont said he tried to warn Tremblay about rumours circulating that companies that won contracts were giving kickbacks.

"He leaned back in his chair and looked at me candidly," said Labont.

"[He] said "you see Benot, in municipal politics that's what it's all about."

Last month, Tremblay was forced to cancel the biggest contract ever to be awarded by the city, following a damning report from Montreals auditor general.

The auditor launched his investigation into the awarding of the $355-million water-meter contract after Tremblays former right-hand man former executive committee chairman Frank Zampino admitted to having vacationed on board a yacht belonging to Accurso.

Accursos company, Simard-Beaudry, was part of the consortium that won the contract in 2007.

On Thursday, Quebecs Public Security Minister Jacques Dupuis announced the creation of a special squad to investigate allegations of collusion in the construction industry.

Asked to respond to Labonts allegations, Dupuis invited him to speak with the provincial police.