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More tax evasion charges related to Public-Private-Partnership corporation

“All too often there is a seamy side to privatization,” said James Clancy, National President of the National Union of Public and General Employees (NUPGE). 

Ottawa (06 Nov. 2013) - This week Revenue Québec announced more tax evasion charges involving Simard-Beaudry Construction, a company involved in one of the largest public-private-partnership projects in Canada, the McGill University Health Centre.

New tax evasion charges laid against company involved in McGill University Health Centre P3 construction

These charges are against companies that helped Simard-Beaudry and other companies fraudulently claim tax credits and refunds. This follows 928 charges of tax evasion being laid against Simard-Beaudry, its owned and related companies by Revenue Québec in June 2013. In both cases it is estimated that tax fraud by these companies was in the millions.

These charges are just the latest charges of corruption related to the McGill University Health Centre:

  • In November 2012, a former CEO  and vice president of SNC Lavalin, another company involved in the P3, were charged with plotting to defraud the McGill University Health Centre
  • In December 2010,  Simard-Beaudry Construction and related companies were ordered to pay Revenue Canada $8 million in fines and back taxes
  • Arthur Porter, who oversaw the setting up of the McGill University Health Centre P3, is in jail in Panama awaiting extradition to Canada on fraud charges.

Privatization supporters had been using McGill P3 as success story - fraud charges show the true story behind project

Privatization proponents have held up the McGill University Health Centre P3 as a model for other projects to follow. In 2010, the Canadian Council for Public-Private Partnerships gave the P3 a gold award for project financing.

“All too often there is a seamy side to privatization,” said James Clancy, National President of the National Union of Public and General Employees (NUPGE). “The fact the Canadian Council for Public-Private Partnerships gave a project that has been linked to so many charges of corruption a gold award is doubly disturbing.”

More information: 

NUPGE Privatization Zombie video

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The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE