Charges laid for bid-rigging in the engineering industry - Part 1

West Quebec Post staff

On June 26, the Federal Competition Bureau announced that criminal charges were laid on June 21, 2018, against four individuals who allegedly conspired to rig bids for 21 City of Gatineau infrastructure contracts between 2004 and 2008.

“When companies or individuals rig bids on public infrastructure contracts, costs for taxpayers go up while value for money goes down. Cracking down on bid-rigging is a priority for the Bureau and I’m pleased that the criminal charges in this matter are now before the courts,” stated Matthew Boswell, Interim Competition Bureau Commissioner.

Back in the fall of 2014, Gatineau Mayor Maxime Pedneaud-Jobin acknowledged that corruption and collusion had cost the municipality many millions of dollars. He confirmed that between 2003 and 2009 there was about $22 to $23 million worth of contracts granted.

The charges under the bid-rigging provision of the Competition Act were laid before the Court of Quebec against André Mathieu, formerly Vice-President and Associate of Cima+; Claude Marquis, formerly Regional Director, Outaouais for Genivar (now WSP Canada); Michel Famery, formerly Regional Vice-President, Dessau; and Dave Boulay, formerly Director and Assistant Vice-President, Outaouais, Dessau.

As these alleged offences took place prior to 2010, if convicted of bid-rigging, those charged face potential prison terms of up to 5 years and a fine at the Court’s discretion. Potential prison terms are now up to 14 years.

Evidence gathered by the Competition Bureau suggests that these engineering firms strategically divided contracts awarded by the City of Gatineau among themselves. The evidence further suggests that the firms secretly fixed prices submitted in response to City of Gatineau calls for tenders at, or near, a tariff schedule established by the Association des ingénieurs-conseils du Québec. The City of Gatineau was unaware of the alleged bid-rigging scheme.

At the end of the scheme, contract costs decreased and the number of bidders increased at the City of Gatineau. Between 2003 and 2009, the alleged colluding firms obtained 128 of the 140 contracts valued at $25,000 to $500,000 granted by Gatineau and consumed close to 90% of the funds. Other firms picked up the scraps winning 12 of the 140 contracts granted, equalling in 10% of funds distributed. Between 2010 and 2013, the situation drastically changed. Colluding firms picked up 73% of municipal contracts and the other firms won 27% of contracts.

Aside from the numbers, one engineering industry employee spoke publicly about the modus operandi. On September 3, 2013, then Outaouais’ AECOM Director Marc-André Gélinas recognized during his testimonial at the Charbonneau Commission that a system of contract sharing existed in Gatineau between 2003 and 2008.

Part 2 will be published next week.

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