The City of Montreal has released an old report that suggests the municipality knew eight years ago that it was significantly overpaying for construction projects, perhaps by more than 30 per cent.
In response to allegations that municipal officials were hiding old documents, the city released Monday a half-dozen reports that examined construction costs.
The earliest of those documents dated back to 2004 and it stated that Montreal was "a closed market" when it came to construction, with public-works contracts going to a handful of companies repeatedly.
"It is always the same companies that share the work, which is likely to explain the high cost," the 32-page study said. "In Montreal, the market is not considered to be very open and, in some cases, may even be quite closed."
While a half-dozen companies got most of the work in Montreal, the study said other Quebec municipalities had up to twice that many firms vying for public contracts.
The study said the city could cut down on costs by opening up the market.
It said closed markets typically come with an inflated price tag of 30 to 40 per cent and it concluded that Montreal could save 20 to 30 per cent with a more competitive bidding process.
Such revelations are now emerging, years later, at the province's Charbonneau commission which is exposing cozy ties between the Italian Mafia, construction companies, and corrupt municipal officials.
The inquiry began hearing from witnesses again Monday after a week off.
Retired city engineer Luc Leclerc wrapped up his testimony with an apology.
After days on the stand where he had expressed little remorse for his actions, even boasting about his ability to falsify contracts, the retired civil servant pleaded for clemency.
"I regret what I did," Leclerc said. "I appeal for the mercy of the general public, of the taxpayers of Montreal, and of members of the [provincial] Order of Engineers."
Leclerc had said before wrapping up his testimony that he didn't see the point in apologizing, because the public wouldn't forgive him.
Leclerc was also forced to admit that he failed to tell inquiry investigators for months that he still had $90,000 from his kickback money, after telling them he'd spent it all. He finally handed over the $90,000 several months later, in October.
