(The Canadian Press circulated the following story on April 7.)
MONTREAL — Former Via Rail president Marc LeFrançois, fired last month amid the federal sponsorship scandal, filed a $2.7-million wrongful-dismissal suit against the government yesterday.
The suit, filed in Quebec Superior Court, also alleges the federal government defamed him when it let him go after allegations of financial improprieties at the national rail carrier.
“The suspension and firing of the plaintiff were undertaken in an irrational, unfair and illegal fashion for politically opportunistic reasons,” LeFrançois said in the court document.
LeFrançois is the third crown corporation executive to sue after being fired last month by Prime Minister Paul Martin’s Liberal government.
Former Via chairperson Jean Pelletier also is suing Ottawa for defamation and wrongful dismissal.
Michel Vennat, ex-president of the Business Development Bank, is contesting his suspension and dismissal in a matter unrelated to the sponsorship scandal. A judge found he hounded his predecessor from office over a controversial loan in Jean Chrétien’s riding.
In his suit, LeFrançois said Via was a successful company under his watch, adding he served with “integrity, efficiency and loyalty.”
But a report by federal auditor-general Sheila Fraser questioned Via’s role in several sponsorship deals linked to the funnelling of $100 million to Liberal-friendly ad firms.
Fraser later found Via and the Public Works Department paid Lafleur, a Quebec advertising company, a total of $3.6 million to produce a magazine.
There was no competitive process to solicit the bid during the 1997-2000 period the money was paid out, and thousands of dollars in commissions were taken by the advertising company.
LeFrançois said audits of Via’s finances during the period in question were favourable.
He’s seeking $2 million in moral damages, $201,425 in back pay and bonuses, and an additional $500,000 in punitive damages.