Crown won’t appeal bid-rigging verdict

The Crown has elected not to appeal last month’s verdict in the long-running trial over alleged bid rigging by multiple Ottawa defendants. It has also dropped an earlier appeal against a directed verdict of not guilty for former defendant David Watts.

“There will be no appeal on any aspect of the trial. The case is complete,” an official with the federal Public Prosecution Service of Canada wrote Monday in an email to the defendants. “The appeal against Mr. Watts will be abandoned.”

The decision is somewhat surprising, given the Crown’s determined pursuit of the defendants over many years. Government lawyers spent in excess of $5 million trying to establish that 10 defendants rigged a series of procurements at Canada Border Services Agency, Department of Transport and Public Works by improperly sharing information and not declaring business partnerships as required by the Competition Act.

Now free of the shadow of criminal sanctions are: Don Powell, Marina Durward, Sue Laycock, Phil McDonald, Ron Walker, Tom Townsend, TPG Technology, Devon Group and Spearhead Management.

The roots of this case date back to 2005, when competitors of the accused complained about the bidding process — eventually bringing the allegations of impropriety to the attention of the Competition Bureau.

However, an eight-month trial established that the defendants collaborated in a manner that was both proper and indeed encouraged by the federal departments in question. Nor could the Crown establish that the accused had shared information about profits.

The trial also featured much insight into the weakness of the investigation by bureau officials — who relied heavily on interviews with competitors of the accused and failed to conduct independent assessments of the computer services industry.

It’s not yet clear what Monday’s decision by the Crown means for a related action. A judge-only trial had been in prospect later this year for five other defendants — Barry Dowdall, David Gelineau, Perry Henningsen, Donna Cona Inc. and Brainhunter. This litigation involves the same set of facts and procurements. But these defendants exercised their right to choose to be tried by a judge rather than a jury.

Monday, officials at Donna Cona Inc. said they had not been contacted by the Crown or their lawyers.