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CORRUPTION IN QUEBEC’S CONSTRUCTION INDUSTRY:
A LEGAL PERSPECTIVE
France Charbonneau Michael Applebaum Gérald Tremblay Charles Chebl McGill University Health Centre
BRIBERY DETAILS:
Public officials were offered
and/or accepted
- Large amounts of money
- Political donations
- Fine wine
- Prostitutes
Bribery extended to members
of almost every major political
party
WHY THIS IS A PROBLEM:
Cartel operations aim to lessen
or prevent competition
Cartels were unfairly awarded
contracts by three main methods
- Bid-rigging
- Bribery
- Collusion and duress
Over 23 firms have been involved
with large-scale corruption
charges in Quebec
EFFECTS OF CORRUPTION:
Restricts innovation for problem
solving
Raises prices for various public
and private construction projects
Destroys public trust in
construction industry and public
officials
Over $36 million in costs for
Charbonneau commision - billed
to taxpayers
REPERCUSSIONS:
Resignation of Montreal Mayor
Gérald Tremblay
Resignation of Montreal interim
mayor Michael Applebaum
14 Criminal charges brought
against Michael Applebaum
Numerous resignations and
convictions for corruption
charges for executives at
constructions firms
The Quebec Construction Association (L’Association de la du Québec, or ACQ)
launched an anticorruption program based on the example of a similar German
model. Unlike the German program, however, this is expanded to include both
large-scale and small- scale companies. An Integrity Officer will be appointed
to oversee implementation, a Code of Conduct has been established, and fines
will be given for noncompliance. So far, six companies have already joined the
pilot program with widescale launch scheduled for early 2016.
WHAT IS BEING DONE?
In addition to what has already been implemented, more needs to be done to stop
corruption and bribery. Stiffer fines for ethics violations, potential banning of
companies found guilty of corruption, and further legislation to provide more
transparency in bidding and contract award process will help to repair the public’s
negative perception of the industry. These changes will also encourage honesty and
further participation and innovation in construction.
WHAT MORE CAN BE DONE?
After reports surfaced that alleged corruption among politicians and large construction companies in Quebec, the Charbonneau Commission was formed. The public inquiry, led by
France Charbonneau uncovered millions of dollars in bribery and kickbacks, and uncovered corruption that has created a mistrust of the construction industry and public officials ever
since. Findings of this report showed that 70% of the funding of political parties in the province can be traced back to corrupt payments, transaction and practices within the
construction industry Large publicly-traded engineering firms were guilty of cartel-like practices previously ascribed to only smaller construction companies in the province. The
testimony of Michael Lalonde linked his firm to Union Montreal for payments ranging from $50,000 to $100,000 a year between 2005 and 2009. Charles Chebl testified that
SNC-Lavelin was given no choice but to cheat on the plans for the MUHC.

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Poster copy

  • 1. CORRUPTION IN QUEBEC’S CONSTRUCTION INDUSTRY: A LEGAL PERSPECTIVE France Charbonneau Michael Applebaum Gérald Tremblay Charles Chebl McGill University Health Centre BRIBERY DETAILS: Public officials were offered and/or accepted - Large amounts of money - Political donations - Fine wine - Prostitutes Bribery extended to members of almost every major political party WHY THIS IS A PROBLEM: Cartel operations aim to lessen or prevent competition Cartels were unfairly awarded contracts by three main methods - Bid-rigging - Bribery - Collusion and duress Over 23 firms have been involved with large-scale corruption charges in Quebec EFFECTS OF CORRUPTION: Restricts innovation for problem solving Raises prices for various public and private construction projects Destroys public trust in construction industry and public officials Over $36 million in costs for Charbonneau commision - billed to taxpayers REPERCUSSIONS: Resignation of Montreal Mayor Gérald Tremblay Resignation of Montreal interim mayor Michael Applebaum 14 Criminal charges brought against Michael Applebaum Numerous resignations and convictions for corruption charges for executives at constructions firms The Quebec Construction Association (L’Association de la du Québec, or ACQ) launched an anticorruption program based on the example of a similar German model. Unlike the German program, however, this is expanded to include both large-scale and small- scale companies. An Integrity Officer will be appointed to oversee implementation, a Code of Conduct has been established, and fines will be given for noncompliance. So far, six companies have already joined the pilot program with widescale launch scheduled for early 2016. WHAT IS BEING DONE? In addition to what has already been implemented, more needs to be done to stop corruption and bribery. Stiffer fines for ethics violations, potential banning of companies found guilty of corruption, and further legislation to provide more transparency in bidding and contract award process will help to repair the public’s negative perception of the industry. These changes will also encourage honesty and further participation and innovation in construction. WHAT MORE CAN BE DONE? After reports surfaced that alleged corruption among politicians and large construction companies in Quebec, the Charbonneau Commission was formed. The public inquiry, led by France Charbonneau uncovered millions of dollars in bribery and kickbacks, and uncovered corruption that has created a mistrust of the construction industry and public officials ever since. Findings of this report showed that 70% of the funding of political parties in the province can be traced back to corrupt payments, transaction and practices within the construction industry Large publicly-traded engineering firms were guilty of cartel-like practices previously ascribed to only smaller construction companies in the province. The testimony of Michael Lalonde linked his firm to Union Montreal for payments ranging from $50,000 to $100,000 a year between 2005 and 2009. Charles Chebl testified that SNC-Lavelin was given no choice but to cheat on the plans for the MUHC.