A city government safe so stuffed with cash that it couldn’t close? A city’s Senior Engineer slyly taking tropical vacations and receiving numerous bottles of wine in his office? These situations involving our elected officials are unimaginable. Yet these were the testimonies made by both construction bosses and government officials during the Charbonneau Commission on the Quebec Corruption Inquiry, revealing endemic collusion between the mafia, construction companies, and government officials.
For nearly 15 years there has been corruption within the building industry, where a total of 30% of tax dollars has fed directly into this corruption. The corruption inquiry issued by Former Premier Jean Charest on Oct. 11, 2011, found that the mafia had manipulated the construction business by infiltrating unions and controlling raw material supply, allowing for large profits to be generated within the construction industry. This corruption involved three-way agreements, leading to exclusive political party favors, obstruction of city contracts, and special treatment to municipal officials.
The controversy ensued when the Canadian National Police found a surveillance video of a meeting held in 2005 between construction bosses, mobsters, and government officials, in which the construction bosses were seen handing over wads of cash to the mafia. Lino Zambito, former Vice President and Co-Owner of Constructions Infrabec has provided groundbreaking information during his testimonies, confirming that this corruption has been going on for several years. Thus far, seven construction sites have been searched and 14 people have been arrested.
Since the release, major players involved in the scandal have resigned, including Tony Accurso, CEO of two big time construction companies. The mayor of Laval, Gilles Vaillancourt resigned on Nov. 9, 2012, yet disclaimed all allegations of involvement in the scandal. Most strikingly, the mayor of Montreal, Gerald Tremblay, resigned on Nov. 5th, 2012. Also in denial of any prior knowledge to this fraud, he claims in a brief speech at city hall on the night of his resignation,
“I now must suffer an unbearable injustice. I never thought my life would be subjected to such a fury in a society of law and justice. But one day, justice will prevail.”
Tremblay then adds that he is leaving office not because he was involved in the scandal but to avoid the overwhelming amount of allegations.
To add to the twist, high profile mobster, Joe Di Maulo, was murdered outside of his house near Montreal, on Nov. 4th, 2012. Although his death is not yet linked to the corruption scandal, it emphasizes how prevalent the Quebec mafia continues to be. The manipulation and secrecy that exists within the mafia is still largely covert, yet they have continued to infiltrate the economy through tax evasion, corruption fraud, and high-stakes gambling. Pistone, an undercover former FBI agent who disguised as “Donnie Brasco” in the New York mafia for nearly 5 years, has provided crucial information onto the conspiracy within the Mafia. Pistone delivered his testimony in secrecy with the commissioners in order to protect his identity. In a statement made to the Charbonneau Commission, Pistone describes life in the mafia:
” You can lie, you can steal, you can kill, you can cheat, and it’s all legitimate… The key word here is what? It’s legitimate. So now you’re into the mindset of a mafia guy. You can lie, you can steal, you can kill, you can cheat, and it’s all legitimate… They function according to their own set of rules.”
In response to this corruption, the Parti Quebecois Leader Pauline Marois has expressed plans to issue laws against organized crime and corruption. As Pistone stated in his testimony, “Organized crime cannot operate without corrupting someone”. In the case of the Quebec construction industry, the mafia was able to tap into each player in the business, including members in the raw material business, municipal officials, and construction bosses, maximizing their profit in every arena possible.
Transparency International, an NGO aiming to fight global corruption, have found that the most effective anti-corruption methods lie in finding impunity amongst the criminals. Impunity allows criminals to be exempted from punishment by bending the law, beating the system, or manipulating officials. It is with this that these mobsters are able to get away with their coveted schemes.
In the case of the Quebec Corruption Inquiry, what has helped? Thus far, the whistleblowers, including Lambito, the former construction boss, and Pistone, have been extremely useful in providing detail of the collusion and secrecy. Transparency International has found that transparency is not enough, and that the criminals must be prosecuted and punished. So the question remains; how do we treat these whistleblowers? Do we punish them for the crimes they have committed, or reward them for risking their lives to come forward and tell the truth? If we want to end organized corruption and ensure our trust in government, encouraging these whistleblowers is one route worth pursuing.
The Quebec Corruption Inquiry is ongoing as further information is being released detailing the collusion within the construction industry. The “Godfather” of the Montreal Mafia, Vito Rizzuto, who was released from prison just weeks ago, is being summoned to the Commission. His testimony would provide instrumental information on the mafia’s presence in Montreal. However, his protection and identity is highly surreptitious, and the Commission is still waiting for his compliance. Until the collusion is uncovered and accountability is reached, all non-urgent construction projects have been suspended and interim mayor Michael Applebaum will be governing the city of Montreal.
