2015-08-10

Crown prosecutors confirmed Monday that they have stayed one charge each of bid-rigging and fraud against Louis Facchini, the owner of First Porter Consultancy, which provides real estate advice to Public Works and Government Services Canada.

“There is no longer a reasonable prospect of a conviction,” lead Crown counsel Mac Lindsay said while filing the directive to stay proceedings. “This applies to both counts in the indictment.”

The Crown laid the charges June 13, 2013 following an investigation of nearly four years by the Competition Bureau.

“I am grateful and relieved that what should never have happened is now over,” said Facchini, who recently turned 50, “I’ve had contracts delayed and eventually cancelled with no explanation. Independent consultants have told me they cannot associate with me because of the allegations and charges, and I’ve had insurance policies cancelled,” he added.

A trial scheduled to begin Sept. 28 has been cancelled.

The charges stemmed from a $5.25-million contract (standing offer) for real estate services awarded by Public Works in 2007 to Corporate Research Group (CRG), First Porter Consultancy and Goss Gilroy. The Crown alleged that CRG and First Porter had submitted proposals that contained a number of the same consultants, and that these arrangements had not been disclosed properly to contracting authorities.

CRG won 50 per cent of the potential contract while First Porter was awarded 30 per cent and Goss Gilroy (which was never part of the investigation) was allocated 20 per cent.

A factor in the Crown’s decision to stay charges was the recently concluded 93-day trial into alleged bid-rigging by 10 Ottawa defendants in the computer services industry. The jury rendered not guilty verdicts on all 60 counts.

That trial considered evidence that suggested it’s quite proper for smaller firms to collaborate on their proposals in order to meet technical requirements. Witnesses suggested teaming is improper only when two bidders share information about profits and the final prices being bid.

Facchini’s lawyer, Patrick McCann, said this did not happen in the 2007 Public Works contract. He added that his client followed the rules laid out by the department’s officials.

The earlier jury trial also considered the key issue of whether suppliers who shared consultants had to inform contracting officials at Public Works in writing about these arrangements. This is what Bureau investigators interpreted Section 47 of the Competition Act to mean. However, trial evidence suggested that this particular piece of law is unclear. Defendants argued their collaborations were well-known to government procurement officials even if these were not formally declared.

The company that suffered the most in the case against Facchini was CRG, owned by local entrepreneur Brian Card. When Bureau investigators pointed out that CRG had failed to properly notify Public Works about the teaming arrangements, the company took advantage of an immunity program. In exchange for CRG pleading guilty in 2012 to a charge of bid-rigging and paying a $125,000 fine, Card agreed to help with the investigation against his former colleague, Facchini.

Card had been counting on being able to conduct “business as usual” but Public Works unexpectedly barred CRG from contracting with the department – the source of nearly all the firm’s revenues. The latter averaged $7 million to $8 million annually at the time.

Card confirmed Monday that he has reached a deal to sell CRG’s assets at the end of this month. In addition, his website notes that he hopes to soon publish two books. “I will share with you how to be successful in the consulting world and in competing for contracts with the public sector.”

Email: jbagnall@ottawacitizen.com

Twitter.com/JamesBagnall1

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