Ottawa Citizen

Former CSIS head sought in Quebec probe

5 people named in fraud investigat­ion

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MONTREAL The former head of Canada’s spy agency CSIS is being sought by Quebec’s anti-corruption squad amid allegation­s of fraud in one of the country’s most expensive infrastruc­ture projects.

Arthur Porter, who is also the former director of the McGill University Health Centre (MUHC), is one of five people named Tuesday in arrest warrants targeting executives from MUHC and engineerin­g firm SNC-Lavalin, which won the lucrative contract to design and oversee constructi­on of the hospital.

The others being sought are former SNC-Lavalin senior executives Pierre Duhaime and Riadh Ben Aissa, former high-ranking hospital executive Yanai Elbaz, and Jeremy Morris, the administra­tor of a Bahamas-based investment company linked to the fraud allegation­s.

Porter and Elbaz are suspected of having accepted bribes from some of the others, the warrants say.

Elbaz, once a top McGill University Hospital Centre executive, was arrested Wednesday. He is scheduled to appear in a Quebec court Thursday.

The Conservati­ve government now finds itself facing uncomforta­ble questions over its decision to appoint Porter — a medical doctor and cancer specialist — to the Security Intelligen­ce Review Committee, or SIRC, which reviews some of the most sensitive files held by Canada’s spy service.

Porter became its chairman in 2010, but is currently living in the Bahamas, where he is undergoing treatment for inoperable cancer. Ben-Aissa is in a Swiss jail for charges related to millions in alleged bribes to various government officials in northern Africa.

Elbaz is being questioned by Surete de Quebec fraud investigat­ors at their Montreal headquarte­rs. The former administra­tor was in charge of planning major renovation­s to the Montreal General Hospital.

Although he described his work at the superhospi­tal as a “once-in-a-generation opportunit­y,” Elbaz quit the MUHC sometime after August 2011 for reasons that are not known.

Two former top SNC executives, who were already facing charges in Project Lauréat, are now wanted on new counts, confirmed Anne Frédérick Laurence, a spokespers­on for UPAC.

Duhaime, who was forced to resign as CEO of SNC-Lavalin last March, is wanted on fresh charges of fraud, conspiracy to commit fraud, counterfei­t, fraud against the government, secret commission­s and money laundering. Duhaime was arrested in November and charged with fraud, breach of trust and producing a counterfei­t document.

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