Evidence of meeting #19 for Public Accounts in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was bonaventure.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Gary Polachek  As an Individual
Janice Cochrane  As an Individual
Alex Smith  Committee Researcher

12:10 p.m.

Conservative

John Williams Conservative Edmonton—St. Albert, AB

Did that economic analysis take into account that you paid $2.1 million for empty space over Place Bonaventure?

12:10 p.m.

As an Individual

Janice Cochrane

At that time we did not know we would incur that expenditure.

12:10 p.m.

Conservative

John Williams Conservative Edmonton—St. Albert, AB

I see, but it was a lease that you had signed. Anyway, that's all water under the bridge.

Monsieur Polachek, I was rather taken aback by this letter from Mr. Drouin. I can't imagine that he just woke up one day and said “I think I'm going to interject myself into this leasing process”, which he was obviously aware of, and would write a letter saying “Start the whole process again”. I would have thought that before that would happen, he would have had some kind of communication with the landlord, who would have said, “Well, you know, I'm kind of disappointed that we're losing a tenant; we have nice space here...”, and so on and so forth. He would have then said, “Let me see what I can do”.

Was there any communication between you and the other owners of the property, the building managers of the property, people involved in leasing the property or managing the property and Mr. Claude Drouin? How did he know that perhaps the organization should stay in Place Victoria? What kind of communication did you or your colleagues or your employees have with him?

12:15 p.m.

As an Individual

Gary Polachek

I'll speak for myself, our company, and our colleagues. The answer to that question is no.

Regarding our partners, who at the time were Caisse de dépôt and the Desjardins Group, I have every reason to believe there was no communication, but I cannot categorically say that no one made a phone call. I do not have any reason to believe that such a phone call was made.

12:15 p.m.

Conservative

John Williams Conservative Edmonton—St. Albert, AB

I do, Mr. Polachek, because I can't imagine that Mr. Drouin just of his own volition, having no rationale whatsoever, said “I'm going to interject myself into this lease process. These people are going to be moving down the street, and I think they should stay. Yes, I think they should stay. It is important that they should stay because...”--why? We don't know why, other than the fact that it cost the government money. You kept a prestigious tenant in a prestigious space--all these things. You or your company benefited. He involved himself in an administrative process, which was irregular and inappropriate.

I'm trying to find the motivation here, because there must have been communication between you--and I say “you” as the landlord, collectively, your company, your organization, your employees, and so on--and Mr. Drouin, for him to think, “Hmmm, yes, I'm going to write a letter to Public Works, so they think this thing all through again”. He also talked to the people at the Economic Development Agency, and they said “Yes, we can reconfigure. We can downsize. We can squeeze in. We don't have to worry about being cozy and tight. We actually like it here, even though it's not a handicapped-friendly building and all that, and we can stay here.”

They wanted to move. The economic assessment said move. The tender said move. Then Mr. Drouin says “We're going to change our mind”. He doesn't work there. He doesn't participate there. He just oversees the agency. So who did talk to Mr. Drouin?

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

Mr. Polachek.

12:15 p.m.

As an Individual

Gary Polachek

To repeat, I certainly know I didn't, and that none of our staff had any communications.

12:15 p.m.

Conservative

John Williams Conservative Edmonton—St. Albert, AB

I'm skeptical.

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

Thank you very much, Mr. Williams.

Thank you very much, Mr. Polachek.

Monsieur Lussier, please.

March 4th, 2008 / 12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Thank you, Mr. Chair.

Ms. Cochrane, you were Deputy Minister from April 2001 to June 2003. Who was the regional director general of the Quebec region for Public Works in Montreal?

12:15 p.m.

As an Individual

Janice Cochrane

The regional director general was Monsieur Normand Couture.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Thank you.

Mr. Chair, I would like to table a document stating that Mr. Normand Couture was officially appointed regional director general on March 17, 2000.

Mr. Polachek, have you ever met or negotiated with Mr. Normand Couture?

12:15 p.m.

As an Individual

Gary Polachek

Personally, no.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

When the call for tenders was announced, the representative of your company was appointed. That person was Richard Poirier, the senior vice-president in charge of leasing operations.

12:15 p.m.

As an Individual

Gary Polachek

That's right.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Therefore, he was mandated to negotiate. According to the documents, on October 1, 2001, he was the one negotiating the lease. At that same time, your document on Weloga states that you hired a new employee, Mr. Christian Couture, as vice-president of finance in 2001. Is that correct?

12:15 p.m.

As an Individual

Gary Polachek

Yes, but at the time, Christian Couture was vice-president of finance for another investment company, not of the management company.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Which corporation was that?

12:15 p.m.

As an Individual

Gary Polachek

Weloga Corporation.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Okay. He became Executive Vice President of McGill University only in 2006.

12:15 p.m.

As an Individual

Gary Polachek

That's correct.

12:15 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Okay. Mr. Christian Couture's resumé states that he performs due diligence. Were you aware of this?

12:15 p.m.

As an Individual

Gary Polachek

Mr. Couture is a chartered accountant. We offer clients of another management company due diligence services when there is a possibility of a purchase or sale.

12:20 p.m.

Bloc

Marcel Lussier Bloc Brossard—La Prairie, QC

Was Christian Couture employed by the Auditor General in 2001?

12:20 p.m.

As an Individual

Gary Polachek

I don't know.