Francois Legault's opposition CAQ party is standing firm despite threats of legal action from former Parti Quebecois leader Andre Boisclair because of comments touching on his past use of cocaine.

A former construction boss testified at the Charbonneau Commission that Boisclair authorized a $2.5-million subsidy in 2003 for a project involving a company that had ties to the Hells Angels.

Boisclair was a PQ cabinet minister in 2003 when he gave the green light to the subsidy.

On Wednesday, Coalition member Jacques Duchesneau drew links between the criminal organization and the fact Boisclair has admitted to using cocaine before.

Boisclair, who is currently Quebec's delegate-general in New York City, warned he would sue Duchesneau if he didn't retract his comments.

But Duchesneau says he has no intention of withdrawing the remarks, while Coalition Leader Francois Legault is defending his member of the legislature.

CAQ Leader Francois Legault demanded to know if the PQ condoned the actions taken by former minister Andre Boisclair in the dying days of the former PQ government .

Testimony at the Charbonneau Commission, released from a publication ban on Tuesday, show that in April 2003 Boisclair approved a $2.5 million construction subsidy to a company operated by an old college friend, Paul Sauvé.

Sauvé has ties to the Hells Angels, and has written a book explaining how he lost control of his company and had it taken over by organized crime in 2006

CAQ justice critic Jacques Duchesneau started the firestorm by saying the public deserves to know if Boisclair, an admitted drug user, was influenced by organized crime in making the decision.

The debate continued Thursday in the National Assembly.

"Does the premier denounce the fact that a former minister gave a subsidy of $2.6 million to a personal friend, four days before an election? Yes or no?" demanded Legault.

On Thursday Premier Pauline Marois refused to answer questions on the topic but house leader Jean-Francois Lisée rose to Boisclair's defence.

"To affirm in this Assembly that a subsidy was given to a friend is not the truth," said Lisée, despite the sworn testimony from Sauvé given before the Charbonneau Commission. Duchesneau also says he has a letter explaining the subsidy and how it was awarded.

"We have to say that secondly I'm very disappointed to see the leader of the CAQ make these allegations without foundation," said Lisée.

The CAQ countered that Boisclair has already admitted breaking the law by using cocaine from 1996 to 2003, when he was an MNA.

Eric Caire said he wants Boisclair to be dismissed from his post as delegate-general to New York, and to return to Quebec to inform the public how he acquired cocaine while he was a minister.

"You have to go to criminal markets if you want cocaine, whether you are a minister or a junkie," said Caire.

Since the CAQ and Duchesneau made their insinuations that Boisclair made an error in judgement by awarding the contract, Boisclair has demanded Duschesneau retract his statements.

Boisclair also launched an online petition to gather support.The PQ is also firing back, producing documentation on Thursday that Francois Legault, who was a health minister with the PQ in 2003, awarded $14 million in contracts to a hospital during the election campaign.

Legault confirmed that he awarded the contract but said that he did not give money to a company run by a friend.

-With a file from The Canadian Press