Lessons from the Charbonneau Commission
Privatizing public services can have dangerous consequences Most people will remember the explosive allegations exposed by Quebec’s public inquiry into corruption and collusion within Quebec’s construction industry. The Charbonneau Commission found that for years, supposedly reputable companies were awarded public road, wastewater, and other building contracts at highly inflated prices. These companies would then kick back a portion of the profits to the mafia, as well as to government officials and political parties that helped secure the contracts. But what allowed these private companies to establish the intricate corruption schemes and highly inflated prices in the first place? Let’s take a look at some of the causes. Austerity and outsourcing Many of the witnesses agreed: years of austerity and cuts within the Transport Ministry created a situation where there was not sufficient internal expertise to properly monitor and inspect public tendering processes, especially in identifying a project’s needs in the design phase. The ministry was … Read more…