Daoust knew about Rona stock sale: aide
Former cabinet minister QUEBEC Jacques Daoust knew that Investissement Québec was about to sell its stake in Rona Inc., but said it was the provincial agency’s “responsibility” and it would have to “live with the consequences,” his former chief of staff told a parliamentary hearing.
Pierre Ouellet has been a pivotal figure in the Rona saga and his testimony Thursday was eagerly anticipated. Daoust, who resigned last Friday, has been under fire from the opposition parties about Investissement Québec’s sale of its Rona shares.
Ouellet recalled having a conversation about Rona with Daoust on Nov. 17, 2014, and said the minister asked whether his authorization was required.
Ouellet said he later told him that his approval was only needed for transactions worth 2.5 per cent of Investissement Québec’s total net assets or higher.
“He wasn’t in favour of the decision,” Ouellet testified, explaining Daoust nevertheless felt that his hands were tied.
The sale of Investissement Québec’s shares eventually led to Rona being bought by U.S. home improvement giant Lowe’s in February 2016.
Lowe’s offered Rona investors $24 in cash per share, in a deal valued at $3.2 billion.
Opposition parties insisted Quebec had lost a “jewel.”
Since then, Daoust has repeated 11 times that he was never informed and had never authorized the sale.
“It’s clear that Mr. Daoust lied,” PQ MNA Alain Therrien thundered, at the end of a long day of testimony at the parliamentary hearing looking into the sale.
“I think Mr. Daoust has paid the consequences of this file and today Mr. Daoust is no longer part of the Government of Quebec,” said Liberal MNA Saul Polo.
It wasn’t enough for the opposition, which was going for the jugular and tried to link the controversy to the premier’s office. Ouellet testified he only spoke to the premier’s chief of staff, JeanLouis Dufresne, in June 2016 about the sale.
“For the past three months, I’ve said it’s impossible that only Mr. Ouellet has taken on his shoulders the decision to sell shares from Rona,” said Coalition Avenir Québec house leader François Bonnardel, calling the whole thing a “coverup.”
“Today, we heard from Mr. Ouellet that ... Mr. Daoust said yes to the transaction and they protected Mr. Daoust since June.”
MNAs also leaned on testimony by former Investissement Québec president Yves Lafrance, who on Thursday confirmed he obtained the minister’s approval in the form of an email.
Ouellet was asked in an email on Nov. 26, 2014 from Investissement Québec: “Can you confirm by email reply that the MEIE (Minister of Innovation and Exports) agrees with the sale?”
The response from Ouellet, two hours later, was: “OK.”
“For us, on Nov. 26 the minister communicated his decision,” Lafrance said.
Two other former heads of Investissement Québec testified Thursday that chiefs of staff don’t usually give their “personal opinions.”
“Going through the chief of staff is the correct way of reaching the minister,” Mario Albert said.
Both Albert and Jean-Claude Scraire said it was imperative that Investissement Québec consult the government about Rona since a political decision was made two years prior (by the Charest government) to buy more shares in Rona to protect the company from hostile takeovers.
The government’s opinion was not only “desirable” but “necessary” in those circumstances, Scraire said.
Article 4 of the Act respecting Investissement Québec stipulates that its mission is “to contribute to the economic development of Quebec in accordance with the economic policy of the government.”
But Investissement Québec’s former chairman of the board, Louis Roquet, said by then the threat of a hostile takeover had dissipated, and selling Investissement Québec’s shares in Rona was a good business decision. “The board is sovereign,” he said.
The “OK” ended up costing Daoust his cabinet job on Aug. 19.
Opposition MNAs said Thursday they have further questions for Daoust, but the Liberals who sit on the economy and labour committee refused to have him appear at the parliamentary hearing.