Premier 'troubled' by Quebec corruption inquiry link to Muskrat Falls contract winner
Majority owner of Opron Construction testified at Charbonneau commission before company won bid
Premier Paul Davis says he was "troubled" by the revelations in a CBC Investigates report Thursday, and acknowledged there are questions about why the vetting process did not catch information about a Muskrat Falls contractor's link to a corruption inquiry in Quebec.
"Anytime you hear of these types of activities, I was troubled by it, myself," Davis told reporters outside the legislature Thursday afternoon.
It's concerning for us. And of course we want to make sure that we have processes that protect us from any such activity.- Premier Paul Davis
"It's concerning for us. And of course we want to make sure that we have processes that protect us from any such activity."
Opron Construction was awarded a contract to construct administrative buildings at Muskrat Falls shortly after its majority shareholder testified at the Charbonneau commission.
Giuseppe Borsellino admitted to handing over envelopes of cash for public works projects in his home province, but denied involvement with the Mafia.
Borsellino was on the witness stand the same month Opron Construction was added to the approved bidders list for Muskrat Falls work.
Asked by a reporter if he had questions about why this wasn't caught at the time, Davis said: "Well, we do. We want to understand that. Of course, there's a judicial process underway as well, so we have to be cognizant of that, and not to interfere with that process. But we also have to look at our own processes to make sure everything is being done that protects the best interests of taxpayers."
Opron Construction won the contract. The work was completed on time, and on budget.
But the Quebec company is now facing more than a dozen lawsuits in Newfoundland and Labrador from subcontractors seeking more than $8 million, combined, for alleged unpaid bills.
Those claims have not been proven in court.
Raised during question period in legislature
Davis spoke to reporters after the Opposition Liberals raised concerns in the House of Assembly Thursday.
"Are you suggesting that the practices of a Quebec company are not important to the decisions that we make here in Newfoundland and Labrador?" Ball asked.
Natural Resources Minister Derrick Dalley replied.
"What I am suggesting is the integrity of the process at Nalcor protects against the kind of activity that is being evaluated and alleged in Quebec through the Charbonneau commission," Dalley said.
Testimony at Charbonneau commission
Giuseppe Borsellino testified at Quebec's Charbonneau commission that he and his cousin were 51 per cent owners of Opron Construction.
His testimony came while Opron Construction was seeking work on Muskrat Falls — a bid that was successful.
CBC Investigates has no information to suggest there was anything improper about that contract award.
'Undertook due diligence'
Gilbert Bennett, Nalcor's vice-president for the Lower Churchill project, said in an interview Thursday afternoon that Borsellino didn't appear in any of the documents it received from Opron, and his testimony at Charbonneau did not show up in their background searches.
"When we look at the evaluation process our approach is to put safeguards in place avoid some of the situations that we see in Quebec right now."
Nalcor generally does not disclose the amount of winning bids for work at Muskrat Falls, but revealed late Thursday the overall value of the Opron contract was between $16 million and $18 million.
