Montreal Gazette

Competitor­s were warned of ‘attacks’

- RENÉ BRUEMMER

According to a report by Montreal’s inspector general released Monday, certain sectors were considered “historical­ly” the domain of certain contractor­s. Other contractor­s would not bid in those areas. Contractor­s would meet in restaurant­s or discuss over the phone which sectors they would bid on, and how much. They were called “non-aggression pacts.” Some contractor­s paid their competitor­s between $20,000 and $50,000 not to bid on their contracts. Other contractor­s would visit their competitor­s to convince them not to bid, or face “attacks.”

Those who bid on a competitor’s territory risked having irate contractor­s putting in lowball bids in their sectors and losing their habitual contracts, called getting “attacked.” Threats of violence, including “getting hit by a hammer in the head,” “getting seriously beat up,” or to “having their legs broken,” were made. Witnesses also mentioned that some contractor­s had ties to organized crime and the Mafia. As part of its investigat­ion, the inspector general’s department interviewe­d more than 60 contractor­s.

Contractor­s that worked in snow dumps moving snow reported having their rented machines vandalized with items like concrete blocks, steel sheets and mattresses hidden in snow. Since the snow had previously been collected by snowblower­s, the contractor­s said the damaging items must have been placed there on purpose.

The inspector general noted that one contract was granted at a cost of $28.95 a linear metre in 2006. In 2011, the same contract was awarded at $16.35. “It is therefore important that the boroughs remain vigilant when this sort of situation presents itself and nothing justifies such a variance in price,” the inspector general said.

 ?? JOHN KENNEY/MONTREAL GAZETTE FILES ?? The inspector general’s office started its study following a report by the city’s auditor general that found several indication­s of price-fixing and elevated pricing.
JOHN KENNEY/MONTREAL GAZETTE FILES The inspector general’s office started its study following a report by the city’s auditor general that found several indication­s of price-fixing and elevated pricing.

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