Montreal Gazette

$22.5 million

From SNC-Lavalin wasn’t a bribe, it was payment for work, Porter says.

- AARON DERFEL THE GAZETTE aderfel@montrealga­zette.com Twitter: Aaron_Derfel

Alleged hospital swindler Arthur Porter has confirmed in a new interview that he was paid $22.5 million by SNC-Lavalin, but he denies that the payment was a bribe to guarantee that the engineerin­g firm would win a $1.3-billion contract to build the superhospi­tal of the McGill University Health Centre that he once headed.

In a sometimes sympatheti­c CBC interview, Porter goes into more detail about his dealings with SNC-Lavalin than in his memoir, The Man Behind The Bow Tie, published last week. In that book, Porter acknowledg­es that he began negotiatin­g with SNC-Lavalin in 2005 for an internatio­nal consulting contract while he was CEO of the MUHC and three years before the bidding process for the superhospi­tal contract was launched.

But Porter does not reveal in that book how much he was paid by the Quebecbase­d conglomera­te. Asked in the television interview why SNC-Lavalin paid $22.5 million to one of Porter’s companies, Sierra Asset Management, he replied that it was “for other things, nothing to do with this” — the superhospi­tal contract.

Pressed to provide details, Porter said the payment was for a “contract we had discussed for a long time: one was for Algeria and some things to do in Libya.”

In a partially unsealed police affidavit obtained by The Gazette, investigat­ors allude to a “fictitious” contract for a gas plant in Algeria, but there is no mention of any projects in Libya.

“The hospital contract was never, never breached by me,” added Porter, who has been incarcerat­ed in a Panamanian jail for nearly 16 months as he fights extraditio­n to Canada to face criminal charges over the superhospi­tal contract.

In a separate interview with the CBC aired on Sept. 3, Porter’s wife, Pamela — who is also charged in the alleged kickback scam — provided a radically different account of the SNC-Lavalin payments to her husband.

Pamela Porter said that she knew her husband earned money “to be helping his wartorn home country (Sierra Leone) with consulting for the company” — an apparent allusion to SNC-Lavalin. And of the $22.5 million that Porter and the other defendants are alleged to have taken in bribes, she said: “That wasn’t the amount of money that Arthur told me about. I learned about that amount of money through the media and through the prosecutio­n in court.”

In an email to The Gazette, a spokespers­on for SNC-Lavalin denied Porter’s assertions about a consulting contract for the engineerin­g firm.

“We have no record providing substantia­tion to Mr. Porter’s allegation,” Elaine Arsenault said.

She also refused to comment on a $1.6-million lawsuit that a former SNC-Lavalin executive, André Dufour, has filed against the company.

Dufour has not been accused of any crime in the alleged superhospi­tal fraud. Until July, Dufour had served on behalf of SNC-Lavalin as president of Groupe immobilier santé McGill, the private consortium that’s building the superhospi­tal.

“Regarding the lawsuit that André Dufour has filed against SNC-Lavalin, we are unfortunat­ely not able to comment due to the ongoing judicial process,” Arsenault added.

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