Sale of Quebec government buildings cost millions, lacked 'basic prudence,' auditor general says

Quebec's auditor generalis blasting the provincial Crown corporation tasked with handling government-owned properties for striking a losing dealwhen it sold three buildings in exchange for long-term leases.

"Basic prudence and sound management rules that should guide such significant transactions were not followed," GuylaineLeclerc'soffice said in a scathing report released Thursday.

The J.-A.-Tardiff and Place Qubec buildings in Quebec Cityand 500 Boul.Ren-LvesqueW.in Montreal were sold in 2007-2008 for $41 million.

The report said theSocitimmobilireduQubec(SIQ) since 2013,theSocitqubcoisedesinfrastructures made concessions in the sale that cost the governmenta total of $59.6 million.

'It's certain now. Everyone knowsQuebecerswere robbed to the bone.'- AgnsMaltais, PartiQubcois

The audit was spurred by a2016 report from Radio-Canada's investigative programEnqute,which found that Quebec Liberal Party fundraisersallegedly pocketed large sums of money through thereal estate transactions.

• Quebec Liberal Party fundraisers allegedly pocketed huge payouts in government real estate deals

According to Thursday'sreport, the corporation had agreed to lease the properties long term so government employees could continue to use them, and pay for any future major repairs.

"The SIQ did not adequately consider the long-term financial impact of becoming a lessee rather than remaining the owner of the buildings," the report said.

Three years prior to the sale, the corporation'sboard of directors had been presented with an internal analysisconcludingthat a sale of two of the buildings would have a negative impact, it said.

Several former members of the SIQ boardtold the auditor general's investigators that the decision to sell the buildings "came from the government." Butno formal directive or decree was issued.

In a statement, the SIQsaid Thursday it was "determined to recover the money in question."

"A team of lawyers is already working to proceed with a civil recourse at the right moment," the SIQ said.

'Cost taxpayers a fortune'

The opposition in Quebec City pounced on the findings Thursday.AgnsMaltais, aPartiQubcoisMNA, said the report shows the deals"cost taxpayers a fortune."

"It's certain now. Everyone knowsQuebecerswere robbed to the bone," she said Thursday.

Premier PhilippeCouillard, for his part,pointedout the salestook place a decade ago, before he was in power.

"We have certainly condemned, and will do again several times, condemned those acts without compromise," he said, adding thatQuebec's anti-corruption unit, UPAC,is investigating.