Liberals rebuff PQ conflict-of-interest charges

Premier Jean Charest denies any wrongdoing in a possible conflict-of-interest scandal that includes allegations public money was diverted to private business interests linked to provincial Liberals.

The Parti Québécois released supporting documents Wednesday, 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.

Charest rebuffed allegations that partisanship had any bearing on who was involved in the fund.

"The fact that you might be a Liberal or a Péquiste is not relevant to the fact that they participate in these funds," he said. "They are people who participate because they are interested in making investments, they're interested in helping their regions, and that's what they do.

"But this is not a partisan issue. And it's not relevant to their past, present, or future political activity."

PQ finance critic François Legault said the diversion of money couldn't have happened without government knowledge.

"What you can see is that at all levels, you see people that are very close to the Liberal party, and maybe that explains why you don't see any supervision at any levels," he said.

Charest accused the PQ of stirring up a political storm where there is none.

The 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 Charest.

In a news conference Thursday, Perrino said he has shocked and disgusted by the "defamatory" allegations, and never transgressed any rules guiding the fund's management.