Winnipeg Free Press - PRINT EDITION
Keeping cities clean
THE province of Quebec will introduce legislation this week to hold civic governments more accountable for the way they award contracts or engage in real-estate transactions. The crackdown follows a series of scandals in Montreal, where civic land was sold for less than market value to a company that had received numerous contracts from the city. There are also allegations of kickbacks, favouritism and influence peddling by Quebec’s tough-as-nails construction industry, which has long enjoyed a special relationship with municipal officials across Quebec.
Similar, if unproven, allegations have been made in Winnipeg over the years and comparable complaints are probably heard in cities around the world. It's really not a big surprise, since large cities negotiate literally hundreds of deals with developers and contractors who want to buy, sell, build or demolish something.
They are naturally and routinely involved with municipal officials because cities have what they need to conduct business. Cities are usually the largest owners of vacant and underdeveloped land. They prepare multi-year, multibillion-dollar capital budgets that determine which bridges and roads will be fixed. They approve variances and changes in zoning and hundreds of other matters that are the lifeblood of construction companies, urban planners, architects and builders.
And whenever big money is involved, there is the risk of corruption, or that an aggrieved party will accuse a competitor of dishonesty.
Over the years, cities have introduced rules and regulations to uphold public confidence in the system, but nothing is foolproof and each revelation of wrongdoing seems to result in new rules and regulations. Quebec's proposed new legislation, for example, will give independent auditors the power to comb through contracts to ensure they are awarded under a proper tendering process. As well, it will require that all municipal contracts of $25,000 or more be listed on a website to boost transparency.
Winnipeg is tame compared with Montreal, but the city should look at its systems for managing real-estate transactions and construction contracts to ensure that it is following the best practices available for a modern metropolis. The city has been open about revealing which consultants it uses, and how much it pays them, but there's no easy way for the public to determine who is building and repairing the infrastructure, unless it's a big contract.
The relationship of civic officials with contractors and real-estate officials in Winnipeg is also murky and even veterans of civic government claim that some of the connections between industry, civil servants and elected officials are too close for comfort. About nine years ago, in fact, a civic audit concluded that political meddling in land deals had cost the city millions of dollars. The report referred to ethical lapses, favouritism and leaks of confidential information. It was all supposed to be fixed up, but was it really? It's not clear.
The city should revisit these issues, not because its officials are dishonest and can't be trusted, but to protect itself from allegations that undermine the public's trust. All levels of government have clean and spotless hands, until something goes wrong and suspicions of wrongdoing are raised. Then, there's a risk that everyone's hands will be viewed as dirty and unclean. It's no way to run a city.
Republished from the Winnipeg Free Press print edition November 16, 2009 A12
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