The final witness on an explosive day of testimony told the Charbonneau Commission Tuesday he fraudulently raised $2 million in illegal funds of political contributions, the largest sum of money the inquiry has heard so far.

Rosaire Sauriol, vice-president of Desseau Engineering, a huge player in the construction industry, said his company won the controversial $350 million Montreal water meter contract in 2009.

Tuesday he testified that he fraudulently raised the $2 million in cash for political funding.

“I took full responsibility for my actions,” he said, before the corruption inquiry wrapped up for Tuesday. His testimony resumes Wednesday and will focus on how the firm manoeuvred to obtain the costly but ultimately failed contract.

Earlier in the day, Pierre Lavallee president of of BPR Engineering said the contract -- Montreal's biggest -- was rigged, and he was part of it.

Lavallee said when the city of Montreal decided to implement a new water metering system in businesses, he knew he wanted in.

The contract was the largest ever tendered by the city of Montreal, and it was approved in less than one minute by City Hall politicians.

But while the bidding process was taking place Lavallee said he saw many things that made him stop and think: firms that normally would have bid on similar contracts were not doing so, and even SNC-Lavalin refused to bid.

Lavallee said he asked the then-executive committee chair, Frank Zampino, if anything was rigged, and he was told it was not.

He did not believe Zampino, but felt he could not complain since he was part of the rigging system.

The bulk of the project was awarded to Genieau, a coalition created specifically for the water meter contract, while BPR engineering won a small portion.

The water meter contract was eventually cancelled after the Auditor General found substantial irregularities on how the contract was awarded, but Genieau was still paid $11 million as a cancellation fee.

Lavallee said he was forced into bribing officials and making illegal donations to political parties in order to work in and around Montreal.

He said "it was shameful and degrading," but a necessary part of business.

Lavallee is the first witness to directly link making donations to political parties and winning contracts issued by governments.

He also said it was impossible for companies not to take part in the corrupt system.

"When political parties ask for donations, the pressure becomes unbearable: what if we were to say no and lose contracts?" said Lavallee.

Testifying in front of the corruption commission, Lavallee admitted it was stupid and reckless, but he figured the odds of being caught were low.

Lavallee said that while collusion and corruption are problems, Montreal's stunning bureaucracy is also a flaw with everything that happens in the muncipal government.

As one example he cited a project to replace the sidewalks on McGill College Ave.

He said that 20 people met repeatedly over 18 months before agreeing on how wide the sidewalks had to be.

Lavallee also said that nowhere on Earth had he encountered a bureaucracy as confusing and ridiculous as Montreal's.

"Listen, I worked in Paris, San Francisco, New York, and it's not as complex. I cannot say otherwise. It's even complicated when communicating between departments here. I've seen the water department have problems getting financial information from the finance department," said Lavallee.

Meantime Tuesday, a scandal that rocked former mayor Gerald Tremblay’s administration more than a decade ago was brought back front and centre.

The case, that goes back to 2002, involved two city councilors from then-Ville Saint-Laurent, including former Canadiens general manager Irving Grundman.  

Grunman and Rene Dussault had joined Montreal city council after the municipal merger. Police caught wind that the two were taking bribes from contractors who needed a zoning change for a new building in Saint-Laurent.

The Surete du Quebec was listening in.

Wiretaps revealed key phrases like: It's going to work, by paying off the party, it works!

Police installed hidden cameras and microphones inside the offices of Dussault and Grundman. 

The former Habs boss is heard telling Dussault how to demand bribes without getting caught.

“You always have to watch the guy, because he might be wearing a wire,” he said in wiretaps.

By the SQ's own calculations, Grundman and Dussault were asking for the equivalent of one per cent of the value of the contract to allow the zoning change the promoters wanted.

Both Grundman and Dussault were arrested shortly after, when an undercover officer went to deliver $75,000 in cash to the two politicians.

They pleaded guilty to corruption and received two-year sentences, served in the community.