QUEBEC CITY – Embattled FTQ President Michel Arsenault testified before a parliamentary committee that more can be done to reassure Quebecers and protect their investments.
The union leader manages both the FTQ solidarity fund and the FTQ-Construction wing. The FTQ has been rocked by testimony at the Charbonneau commission that Arsenault knew about links with organized crime, but never acted.
“I think the overarching issue is the high level of proximity between the union itself and the fund,” said Liberal leader Philippe Couillard. “If the end result is that public projects are overpriced and badly managed, of course there’s a cost to taxpayers.”
The solidarity fund was created to support local businesses and further economic development. The fund holds $9.3 billion in net assets and has over half a million shareholders. Allegations the fund was targeted by mobsters have worried Quebecers, said CAQ leader François Legault.
“The Fonds de solidarité is very important for the economy in Quebec. We have to protect it,” he said.
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Premier Pauline Marois agreed: “The issue of governance at the FTQ must be addressed,” she said.
But Pauline Marois was less chatty when it came to her dealings with Arsenault. Media reports claimed the pair met twice right after the FTQ invested millions in a company partly owned by Marois’ husband, insinuating the investment, which lost money, was made to cajole Marois before she became Premier. Arsenault argued he regularly meets with politicians and spent three hours on Tuesday defending his record.
Arsenault said there have been many changes at the FTQ since 2009, improvements that have made the fund more transparent. But he recognized more can be done to reassure Quebecers.
“What did we do? We met and decided to improve our code of ethics,” he told MNAs. “Is there room for improvement? Surely,” he said.
He said the FTQ will create a special committee into governance. Opposition parties urged Arsenault to put more distance between the FTQ-construction and the investment fund.
Arsenault announced yesterday he will not be seeking another mandate at the FTQ. He insisted his resignation has nothing to do with revelations at the Charbonneau inquiry.
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