City cancels $31.5 million in Accurso contracts

Posted By: Sarah Deshaies · 8/15/2012 6:53:00 PM

The City of Montreal is cancelling four construction contacts, three of which are with with Louisbourg SBC, a firm affiliated with tainted construction magnate Tony Accurso. 

The total worth of the contracts is over $31 million. 

The contracts were for work on roads, water and parks. A second company, Terramex, had a $12 million contract to refurbish Place du Canada.

Mayor Gerald Tremblay made the announcement alongside executive committee vice-president Richard Deschamps on Wednesday afternoon.

He said that the committee received a letter from Louisbourg's lawyers minutes before meeting on Wednesday. It called for the city to "respect the law" and the contracts. But Tremblay said the threat of a lawsuit won't intimidate him: "I'm not going to be influenced on a decision because someone might decide to sue me."

Of the four contracts, a paving project was cancelled because it cost 16 per cent more than the city's estimate. Contracts that go over 15 per cent are supposed to be rejected by the city.

A city committee overlooking construction deals had concerns about the other three cancelled contracts.

However, the mayor added that one work will not be go back to public tender: a $16 million aquaduct project on MacTavish Street downtown was deemed too urgent to be put off. 

There is no other decision yet on a dozen or so other contracts with Louisbourg.

Accurso was first arrested in May by provincial police on suspicion of corruption as part of Operation Hammer; he was arrested last week by RCMP and charged with fraud.  

Leave a comment:

· Subscribe to comments
Be the first to comment here. You DO NOT need to be a member to comment.

News

You are seeing the 2 most recent blog posts.

News Videos

News Audio

Note about comments: Comments will not appear immediately after posting. Comments containing links or vulgar language and comments that are racist, sexist or offensive will not be approved.