Bachand admits investment fund rules may have been broken
PQ alleges public money was wrongly given to private firms
Quebec Economic Development Minister Raymond Bachand admitted Wednesday that rules may not have been followed in some cases where public investment money was allegedly awarded to private firms that didn't qualify for it.
He told reporters a special probe could be ordered, and changes could be made to ensure the fund is operated properly.
Parti Québécois Leader Pauline Marois has called for a special audit of a venture capital fund known as FIER (Fonds d'intervention économique regional), which was designed to boost the economy in specific regions.
Marois said it is unacceptable that public money is making its way into the hands of private investors who shouldn't be receiving it, either because they are not in the appropriate region or because people handing out the money have a conflict of interest.
On April 29, the PQ released documents alleging people with ties to the Quebec Liberals diverted more than $6 million of venture capital money into their own companies via an economic development fund in the Saguenay.
One economic development fund, known as Fier-Boréal 02 Inc., was administered by Pietro Perrino, Valier Boivin and Gilbert Grimaud. Perrino is a longtime provincial Liberal with ties to Quebec Premier Jean Charest, who is also leader of the Quebec Liberal Party.
At a news conference recently, Perrino said he was shocked and disgusted by the "defamatory" allegations, and never broke any rules guiding the fund's management.
Until Tuesday, Bachand had denied there were any problems with distribution of the development funds.
Charest has also denied there was any wrongdoing.