OpenCDA

June 26, 2013

More Lessons From Charbonneau

Filed under: Probable Cause — Bill @ 5:09 pm

Claude AsselinQuebec’s Charbonneau Commission investigating corruption in the province’s construction industry didn’t stop at Montreal’s city limits.

Claude Asselin was the general manager for Laval, a city with about 402,000 citizens and 12 miles northwest of Montreal.  The general manager would be roughly equivalent to a city administrator in Idaho.

Asselin, by the way, was arrested by the Sûreté du Québec or SQ, and the Unité Permanente Anticorruption or UPAC, Quebec’s special anti-corruption squad.

According to The Gazette newspaper article headlined Laval manager feared for job, when questioned about his role in the political influence, bid-rigging and kickbacks and asked why he didn’t do something to stop them, Asselin reportedly, “…told the commission Wednesday that he loved Laval and his job as general manager, so he didn’t want to jeopardize that by raising a red flag about the widespread collusion going on between construction companies and politicians”  The Laval Mayor decided which construction companies got the jobs, and Asselin said he was afraid of losing his job if he spoke up.  Hmmm.

September 28, 2014

Corruption Commission Concludes Testimony

Filed under: Probable Cause — Tags: — Bill @ 1:47 pm

CorruptionEveryonePaysPublic testimony has concluded  in Quebec’s public corruption probe.

The corruption commission headed by Justice France Charbonneau was instituted in 2011 to examine the extent of corruption in the province’s construction industry and that industry’s ties with organized crime and provincial and local governments.

Evidence was presented which showed substantial and longstanding  infiltration by organized crime into the construction industry as well as the collusive and corrupt involvement of provincial and local government officials in awarding public contracts.

The most colorful and possibly most damaging testimony came from construction magnate Tony Accurso.  “His testimony provided an intimate window into the cosy [sic] relationship between Quebec political figures and businessmen who rely on public contracts for their livelihoods,” according to the story headlined Donations to Quebec Liberals the cost of doing business, Accurso tells corruption probe in the September 5, 2014,online news medium  OurWindsor.ca.  The article’s subheadline reads “Charbonneau commission hears about illegal political donations from construction boss at heart of Quebec’s corruption scandal.”

Organized crime’s infiltration into Quebec’s construction industry was fleshed out a bit in the September 17, 2014, Daily Commercial News story headlined High profile Quebec corruption inquiry hears from last witness.   Lest we think organized crime would not be interested in infiltrating the very lucrative construction industry in the United States, the article reported that one of the Charbonneau Commission’s witnesses was former US FBI Special Agent Joseph Pistone whose testimony “… served as a primer on the Mafia’s long-standing infiltration of the construction industry.”  And then there was this article from the OurWindsor.ca article dated September 3, 2014.  The article’s headline, Montreal mafia boss was a contact, construction magnate tells corruption probe, says it all.

The Charbonneau Commission is expected to issue its final report in April 2015.

Of course, the corruption of public officials to induce them to provide lucrative public contracts only happens in the Canadian Province of Quebec.  It could never happen in the State of Idaho.  It’s not as if multimillion dollar construction contracts are awarded by Idaho’s state and local governments.    And it’s not as if Idaho’s judges, prosecutors, county commissioners, sheriffs, mayors, and city councils would ever accept campaign finance contributions or other remuneration to use their discretion and influence to make sure that corruption investigations never get off the ground or to steer construction contracts toward “generous” contributors.  No, that could never happen here in Idaho or Kootenai County or Coeur d’Alene …

August 28, 2014

Verdun d’Alene?

Filed under: Probable Cause — Tags: , — Bill @ 2:56 pm

slippery slopeOpenCdA has been following the Canadian news media’s reporting of the Quebec corruption scandal and its investigation by the Charbonneau Commission.

The focus of the Charbonneau Commission’s investigation is Quebec’s “…deeply-rooted system of kickbacks, bribes and illegal fundraising that link the province’s construction industry to politicians and civil servants.”  We touched on that in our June 22, 2013, post entitled “Corruption becomes a kind of cancer”.

In its online story on August 26, 2014, headlined Bending of rules cost Verdun taxpayers $1.5 million in lost revenue, mayor says, the Gazette [montrealgazette.com] provides an ultra-simple explanation of how officials in Montreal’s borough of Verdun managed to make sure their cronies enriched themselves at the expense of Verdun’s citizens.  Verdun has a population of about 66,000.

Fortunately, that kind of cronyism and favoritism never happens here in Coeur d’Alene, Idaho.

May 30, 2014

School Construction Corruption?

Filed under: Probable Cause — Bill @ 7:25 am

corruptionThe Rochester Democrat & Chronicle newspaper is reporting today that the Federal Bureau of Investigation is investigating the Rochester City School District and some of its contractors in a bid-rigging and kickback scheme.  Some of the underlying details of the alleged frauds committed are outlined in the D&C article.

OpenCdA has put up several posts describing the basis for and workings of Quebec’s Charbonneau Commission looking into the extensive corruption in Quebec’s construction industry.

It will be interesting to follow developments in the FBI’s investigation of the Rochester, New York, school district’s contracting practices.  School districts may be especially vulnerable to the type of fraud alleged in Rochester, because quite often their administrators and patrons just cannot imagine that their community’s predators in the construction industry would take advantage of their gullibility and vulnerability.

Of course to crooks, a dollar is a dollar.  While not all in the construction industry are crooks, some are, and school district boards have a duty to the district’s patrons to safeguard the money entrusted to them.  Board members must remember that their duty is to the district’s patrons and students, not to local industry.

November 13, 2013

Update: Fight Public Corruption – Save Money

Filed under: Probable Cause — Tags: , — Bill @ 8:40 am

CorruptionEveryonePaysHere is a November 12, 2013, update on our OpenCdA post on November 8.

The Globe And Mail newspaper headline sums it up nicely:  Anti-corruption measures saved Quebec $240-million on roadwork, minister says.

The Globe And Mail newspaper stories are remarkable for their clarity with statements such as these:

– “Several reports have underscored flaws in the awarding of government contracts where the monitoring of the projects was often contracted out to the same engineering firms that had designed the projects.”

– “The Charbonneau Commission into corruption in the construction industry lifted the veil on the schemes deployed by engineering and construction firms to fix prices and bribe local officials handling municipal infrastructure projects.”

– “The [Charbonneau Commission] probe will soon delve into the awarding of provincial contracts as the inquiry attempts to disclose connections involving firms receiving government contracts and provincial party officials.”

– “The revelations made at the [Charbonneau Commission] inquiry have created a shock wave throughout the [construction] industry while upsetting the patterns of corruption created by organized crime and corrupt officials that included fraudulent cost overruns and shabby workmanship.”

Of course, it’s not like any of these things ever happen in Coeur d’Alene, Idaho.

November 8, 2013

Fight Public Corruption — Save Money

Filed under: Probable Cause — Tags: — Bill @ 9:25 am

CorruptionEveryonePaysOpenCdA’s posts on June 18 and June 22, 2013, were titled Another Mayor Arrested – Corruption and “Corruption becomes a kind of cancer” respectively.  These two posts introduced readers to the work of the Charbonneau Commission in Montreal, Quebec, Canada.  The Commission was created in late 2011 to investigate widespread corruption in the building industry in the province of Quebec.   Quebec Premier Jean Charest appointed the very highly-respected Quebec Superior Court Justice France Charbonneau to preside over the inquiry.

After a brief summer hiatus, the Charbonneau Commission has resumed its hearings.  Today’s post links readers to an interesting news report in The Globe and Mail newspaper online version.   The news report offers a tantalizing hint about how much fighting public corruption has saved Quebeckers in real dollars.   The article includes these statements:

  • “Fighting corruption may have generated nearly a billion dollars in savings…”
  • “Strict anti-collusion rules in the awarding of government contracts that the Parti Québécois minority government adopted late last year have reduced costs for major infrastructure projects.”
  • “Bids on government contracts are lower since corrupt practices have been eliminated.”

The Quebec government will release a detailed cost savings report later in November.

“Fighting corruption … in monetary terms is quite profitable,” Conseil du trésor Chair Stéphane Bédard said. “The effects are tangible for the pocketbooks of Quebeckers.”

August 6, 2013

Protection of Government Integrity – Bribes and Gratuities

Filed under: Probable Cause — Bill @ 7:02 am

gratuityOutside the political boundaries of Idaho, federal agents and federal prosecutors aggressively strive to protect the integrity of our government by investigating and prosecuting bribes and gratuities alleged to have been offered to public officials or solicited or accepted by them.  Here are some examples of public corruption investigations undertaken by the Internal Revenue Service in FY 2013.

Doing its part to educate and inform the public inside the political boundaries of Idaho, OpenCdA will explain what the federal statutes pertaining to bribery and gratuities.   It won’t change the feds’ political cowardice here, but it will help explain why corrupt officials outside Idaho go to jail. (more…)

June 22, 2013

“Corruption becomes a kind of cancer”

Filed under: Probable Cause — Bill @ 4:35 pm

slippery slope

I seriously doubt that too many of our county and local politicians have even heard of Montreal’s Charbonneau Commission, so its lessons will be missed.   Missed…ignored…same difference.  We are in Idaho, after all.

We provided information about it in our June 18 post titled Another Mayor Arrested – Corruption.

The Charbonneau Commission has remained in the public eye in Quebec largely because of the reporting of diligent news media, especially Montrea’s newspapers The Gazette and The Globe and Mail.  But it would never have launched had it not been for relentless public pressure on Quebec Premier Jean Cherest  to appoint a courageous Quebec Superior Court Justice France Charbonneau to lead the inquiry.

The title of today’s post, though, was a quote taken from The Gazette article on June 21.  That article is a story of how a civil engineer bought public contracts in the local construction industry.  It was a way of life, a cost of doing business, a cost of getting those juicy public contracts for construction and engineering work.  The story notes,

As Quebec continues to delve into the deeply-rooted system of kickbacks, bribes and illegal fundraising that link the province’s construction industry to politicians and civil servants, stories like Raymond’s [the engineer) are becoming increasingly familiar.

The Gazette’s June 21 article is, once again, an excellent tutorial on how municipal corruption happens.  Read it in The Gazette, because these are stories you will never see in the Coeur d’Alene Press or The Spokesman-Review.

June 18, 2013

Another Mayor Arrested – Corruption

Filed under: Probable Cause — Bill @ 8:26 am

Applebaum copyWell, yet another mayor pledging to clean up corruption in his city has been arrested — on 14 counts of corruption.  This time it’s Mayor Michael Applebaum, the mayor of Montreal, a city of approximately 1.65 million in Canada’s Quebec province.

According to an O.Canada.com article headlined Development projects at centre of charges against Montreal mayor, “The charges, 14 of which are levelled against Applebaum, who was mayor of the borough [Montreal’s Cote-des-Neiges-Notre-Dame-de-Grace borough] from 2002 to 2012, relate to what officials with Quebec’s anti-corruption squad called ‘tens of thousands of dollars’ in bribes in exchange for municipal support and approval for the two real-estate projects between 2006 and 2011.”

Applebaum and a couple of other suspects were arrested by the Quebec Provincial Police, known there as the Sûreté du Québec or SQ, and the Unité Permanente Anticorruption or UPAC, Quebec’s special anti-corruption squad.  A Globe and Mail online article headlined Behind the bribery allegations that have enveloped Montreal’s mayor provides more details about the charges.

ADDENDUM on June 18, 2013, at 3 p.m.:  Montreal Mayor Michael Applebaum resigned today.  Interesting paragraph from the Reuters article:

His departure will do little to help the reputation of Quebec, where a two-year public inquiry led by Judge France Charbonneau is unearthing almost daily allegations of contract rigging, kickbacks and fraud going back many years.

That is a very succinct and well-stated reason for pursuing public corruption rather than choosing to ignore it.

ADDENDUM on June 19, 2013, at 8:15 a.m.:  Here is a pretty good primer on how to bribe public officials with what appear to be legitimate campaign donations.  Here is another one.

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