Laval recovers almost $50M of misappropriated funds

MONTREAL – The City of Laval has recovered almost $50 million of misappropriated funds linked to fraudulent public contracts, announced Mayor Marc Demers Tuesday.

"The recovery of the overpaid sums due to the corruption and collusion that once prevailed in Laval is a priority for our administration,” he said.

Demers says the city put together a recovery team after it was revealed at the Charbonneau Commission that there was dire corruption when it came to granting and managing public contracts in the construction industry.

“This team…has unique expertise in Quebec and will continue its efforts to recover more money," said Demers.

The $50 million is part of the Quebec government’s voluntary repayment program, which aims to recover money unjustly paid to contractors as a result of fraud or fraudulent tactics dating back to 1996.

“So far, in addition to the numerous settlements, seven lawsuits have been filed and many more will follow," Demers said.

The city says the recovered money will “go directly back to the community.” Some of it will go to the creation of the Place-du-Souvenir Fund, which aims to help disadvantaged youth find their full potential.

Officials say they will also set aside $20 million for the acquisition and development of natural spaces.