December 23, 2009

Canadian Senator cleared in stimulus contract controversy

OTTAWA

Conservative Senator Leo Housakos did not break any ethics rules while working within an engineering firm that landed a federal stimulus contract, a Senate watchdog says.

The Canadian Press reported this fall that Housakos was on the payroll of Groupe BPR Inc., last September when it was awarded $4.5 million as part of a consortium studying the aging Champlain Bridge.

Housakos was a key organizer behind a Tory fundraiser in May attended by executives of BPR and board members of the federal bridge agency that later awarded the contract. The details of the contract were announced the same day as the fundraiser by Public Works Minister Christian Paradis.

Housakos asked Senate ethics officer Jean Fournier to offer his opinion on the matter, as opposition politicians hammered the government with allegations of an ethical breach.

Fournier said he “did not find any evidence that the senator used, or even attempted to use, his position as senator to influence the decision” of the Jacques Cartier and Champlain Bridge Inc. (JCCBI).

Fournier also said that he found the process for awarding the federal contract was “fair, rigorous and transparent.”

He said BPR executives confirmed Housakos’ statement that did not know BPR was bidding on the bridge contract, and that he had little contact with senior management because he was president of a subsidiary.

“I therefore find that the allegations against Senator Housakos are unsubstantiated and without merit,” Fournier wrote.

Housakos said through his office that he is “respecting the findings of the report.”

Housakos had maintained throughout that he did not work for BPR, but for its subsidiary TerrEau.

Canadian Press

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