It was Quebec City’s turn Wednesday to discover how it had been fleeced for years by engineering firms who secretly fixed prices in the province’s capital.

After listening to testimony from engineers describing how firms co-operated to win bids in the Quebec City and Gatineau areas, Justice France Charbonneau said the relatively small number of engineering firms operating in Quebec is what allowed collusion to flourish. At least eight firms were involved in the scheme in Quebec City.

 Though different cities are coming under examination as the Charbonneau Commission resumes after a two-month break, the engineering firms remain the same.

On Wednesday, Patrice Mathieu of Tecsult/AECOM returned to the stand for a second day, describing how a small number of firms, namely SNC, Cima+, Genivar, Dessau, HBA, Roche, BPR and Tecsult/AECOM controlled the construction market.

Mathieu said that many firms felt that Bill 106, which was designed to stop corruption, was not fair, and so companies broke the law in order to maintain their profit margins.

"It wasn't even a factor. As long as we were making money we would fix our prices. We all worked on Bill 106, we wanted it to change, and we were not happy with it," said Mathieu.

He testified that at one point the manager of Quebec City noticed the firms were fixing their prices, and called a meeting with company managers where he ordered them to stop.

Mathieu said that company supervisors told employees to follow the law, but looked the other way as long as money was being made.

"We knew it was not right," said Mathieu, but we broke the law anyway. “We were stuck with a system which we couldn’t change.”

Mathieu claims that he and others conspired to fix prices and rig calls for tenders in Quebec City while former mayor Jean-Paul Lallier was still in power, claiming the engineers had no choice because prices were too low and no one was profiting enough.

“We were aware it wasn't right, and yes, maybe we didn't take it seriously,” said Mathieu.

Agreeing to distribute contracts was perfected in 2004-2005, and kicked into high gear in 2006 as all three levels of government made massive investments in infrastructure in order to boost the economy.

Commissioner Renaud Lachance wanted to know if the Order of Engineers was ever tipped off about the price-fixing, to which Mathieu replied that it was irrelevant.

“I don't think it's the order of engineers' job. Its role is to protect the public,” he said.
Mathieu didn't say how much Quebec City taxpayers may have overpaid, but current Mayor Regis Labeaume said he's now threatening lawsuits against engineering firms who defrauded the city. 

Mathieu was barely apologetic in his reply.

“Make sure you recommend fixing Law 106, because that's what led in part to the collusion,” he said.

The Charbonneau Commission is now done with engineers, and is moving on to its next target: biker gangs. 

Wednesday afternoon, the inquiry heard from SQ investigator Det. Alain Belleau, who gave perspective on the infamous group, providing a history of the Hells Angels from its humble beginnings in the 1940s to its new business tactics, which involve laundering money in legitimate business – such as construction companies in Quebec.