November 20, 2012
Old report surfaces, shows Montreal warned years ago about inflated costs
The City of Montreal has released a report that suggests the municipality knew years ago that it was significantly overpaying for construction projects, perhaps by more than 30 per cent.
In response to allegations that municipal officials were hiding old documents, the city released a half-dozen reports commissioned since 2004.
The 2004 report stated that Montreal was a closed market when it came to construction, with contracts going to the same half-dozen companies over and over.
The current city manager, Guy Hebert, says action began being taken in 2009 with a number of measures designed to prevent collusion and corruption in the awarding of municipal contracts.
A report in 2006 made a lengthy list of suggestions on how to deal with the potential problem. Hebert says those recommendations are in effect today.
The existence of the reports came to light last week when the city’s second most-powerful politician, Michael Applebaum, quit as chairman of the executive committee.
He expressed frustration with his colleagues over their decision to delay releasing the report until after city council meets to select an interim mayor this week.
Applebaum was also upset that colleagues refused his proposal to scale back planned property tax hikes; he said taxpayers were justifiably angry about waste and corruption and didn’t deserve a planned 3.3 per cent tax increase.
Applebaum had another reason to be miffed with his colleagues: he was passed over as his party’s choice for interim mayor. The city council will pick a temporary replacement for Gerald Tremblay, who recently resigned as part of the fallout from a corruption controversy.
News from © Canadian Press Enterprises Inc., 2012
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 481 projects with a total value of $2,274,238,471 that Reed Construction Data Building Reports reported on Wednesday.
$150,000,000 Ottawa ON Negotiated
$135,000,000 Toronto ON Tenders
$82,000,000 Toronto ON Tenders
- VIDEO: Debate still strong as OCOT turns one
- Upset waters over new Ontario diving regulations
- Covering up the Celsius
- Frontier Oilsands Mine joint review panel raises concerns among some First Nations
- Doors open on latest PPP Canada funding
- U.S. builders’ confidence rises but is limited by tight credit and shortages of labour and lots
- Keystone XL opponents carve message
- RFP released to shortlisted teams for Milton hospital expansion
- Photo Gallery: 2014 ACEC BC Awards of Excellence winners
- Journal of Commerce Preview for the week of April 21st, 2014
- Fort McMurray airport terminal getting ready for take off
- B.C. government forms liquefied natural gas working group
- Kitimat residents vote against Northern Gateway pipeline
- Precast concrete enables net-zero homes
- Learning to dig safely can save lives
- Ex construction boss admits to collusion in government contracts
- P3 Fund launches
- Supreme court won't hear case involving construction mogul
- Minister spurns spat over plant