Days after the Auditor General of Quebec denounced the freespending ways of Tourism Montreal, the chair of the agency has resigned.

Jacques Parisien announced his resignation on Friday, informing provincial tourism minister Pascal Berubé of his decision.

Tourism Montreal announced Friday afternoon that Michel Archambault would take the reins in the interim.

Montreal mayor Denis Coderre had asked Parisien to step down earlier this week, but the mayor has no say over the tourism board. Coderre has asked for an investigation into the apparent lack of oversight on Tourism Montreal's spending.

The severance package and high salary of the former head of Tourism Montreal, Charles Lapointe, was called into question this week by the Auditor General who said the fees approved were astronomical.

Lapointe retired this year with a $650,000 severance package, only to take up a volunteer position with the Arts Council, a position that Lapointe gave up on Thursday.

Tourism Montreal said in a statement Friday that it would attempt to improve its business processes by establishing governance and human resources committees and by further empowering its audit committee.

In the same statement, Tourism Montreal confessed to failing to inform and consult its directors effectively about the compensation and expense accounts used by Lapointe.

The board also vowed to attempt to recover some of the retirement pay given to Lapointe.