Pointed out five years ago because of the stranglehold of organized crime, the towing industry in Montreal has calmed down, notes the Office of Inspector General (BIG) in its annual report tabled Monday at the city council. Although a healthier climate has been established in the field of towing, several companies excluded from the contracts have nevertheless tried to circumvent the rules, however noted the general inspector, Me Brigitte Bishop.
In 2017, the BIG had painted a less than rosy picture of the towing community in Montreal: acts of violence, threats and intimidation were common practices in this industry to protect the territories, had observed the inspector general at the time, Me Denis Gallant . Organized crime had gradually taken control of certain sectors of towing, including that of damaged vehicles. Montreal has not granted exclusive contracts since February 2016, contractors had control over certain areas. The OIG had notably recommended that in this sector, contracts be awarded by invitation to tender and that security checks be carried out systematically on companies and their managers.
In office since 2018 as Inspector General, Me Brigitte Bishop wanted to take stock of the application of the recommendations made at the time.
She notes that the Service de police de la Ville de Montréal (SPVM), which took over from the Bureau du taxi in 2018 for the administration and monitoring of towing contracts, took the OIG’s recommendations seriously. It has since awarded exclusive contracts to qualified bidders who have obtained security accreditation. “The SPVM’s efforts have made it possible to establish a healthier and more equitable market,” underlines Me Bishop in his report.
But the new practices have not ended the climate of violence and intimidation that has persisted during the transition period, she says. “In particular, unqualified companies have used new tactics to overtake contractors at accident sites (emergency waves and incentives to accident witnesses, among others) and in this way maintain their place in the industry. “, she relates.
The towing industry must continue to be the subject of “particular attention”, recalls Mr. Bishop. But according to her, the contracts are now awarded to towing companies “responsible” and “honest”. Exclusive contracts in ten distinct sectors are now awarded. According to her, the imposition of a single fee schedule has reduced the risk of collusion and ensured “fair and equitable billing”.
In his report, Me Bishop also reviews the investigations that his office carried out in 2022. One of the reports filed concerned breaches in the awarding of contracts by the Société de transport de Montréal (STM) in the file for the new Bellechasse transit center and another on a call for tenders from the STM for compensation and benefits consulting services.
In March 2022, in an investigation report submitted to the city council, the BIG had requested that the contract awarded to the company Services Ricova for the treatment of recyclable materials be terminated due to “deceitful maneuvers”.
In June, it was the turn of the subcontracts granted by Entreprises KL Mainville to Louis-Victor Michon and his companies, who had already been excluded from the City’s contracts, to be in the crosshairs of the BIG.
These reports lead Brigitte Bishop to say that “unfortunately, contractual delinquency does not cease in Montreal”.
During the summer of 2022, a team from the BIG also looked into work sites aimed at replacing lead pipes. The BIG notably noted that only three companies obtained contracts for this type of work in 2022, which may be a worrying sign of possible collusion. But even after a thorough investigation, the OIG could not confirm the presence of collusion. However, the OIG noted shortcomings in the management of contaminated soil, one of the disposal sites not holding the required authorizations. These shortcomings were reported to the City and corrective action was taken quickly, the report said.
Legal Challenges
Several companies targeted by OIG investigations have gone to court in recent years. This is particularly the case for Entreprises KL Mainville inc. which applied for judicial review following the termination of two snow removal contracts in order to obtain a stay. The company notably criticized the Inspector General for having granted it insufficient time to respond to the OIG’s opinion and that it had been deprived of a right to a full and complete defence, which the judge had rejected. . The founder of Entreprises KL Mainville, Serge Mainville, is now challenging in court the city’s decision to place him on Montreal’s “black list”, making him ineligible for contracts.
In another dispute related to the termination of sump and sewer cleaning contracts, the company, Beauregard Environnement, went to court to obtain access to several elements of the OIG’s investigation file, this which the court ultimately refused citing public interest. On the merits, the case is still before the court.
Surplus
For 2022, the OIG office had a budget of $6.6 million. However, the expenses finally amounted to 4.5 million, including 4 million in remuneration. The unspent $2.1 million, which had been earmarked for professional services, will be returned to the City of Montreal.
Between January 1 and December 31, 2022, the OIG received 198 whistleblowers, compared to 212 in 2021 and 252 in 2020.
Mr. Bishop will complete his term this year.