City cancels $31.5 million in Accurso contracts
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.