2023-05-08 20:50:11
“Was there a widespread misuse of funds in Otéra? The investigation report indicated that no, “said the former head of the Caisse de depot et placement du Québec, Michael Sabia, in the second week of the lawsuit brought by Alfonso Graceffa once morest the institution. Had it been, the commercial lending subsidiary would have been “closed”, he said.
Called to testify, Michael Sabia, delivered his version of the facts concerning the storm that splashed the institution and its subsidiary specializing in commercial loans, in 2019, following allegations of ethical breaches targeting Otéra employees.
The “primary concern” of the Caisse was to verify whether these were isolated ethical breaches or whether there was a systemic problem within Otéra, notably underlined Mr. Sabia, before the judge.
“If the investigation we launched had shown an organizational problem within Otéra and widespread inappropriate activities, then our response would have been to get out of the portfolio, to close it. Because, once once more, there was no tolerance within the Caisse regarding behavior that would raise questions regarding integrity,” Mr. Sabia also specified.
Bonds of trust with Quebecers
Mr. Sabia explained in particular that the institution he headed quickly took the necessary measures to shed light on the allegations, first revealed by the Montreal Journal.
“Things that have the potential to diminish or break the bonds of trust between Quebecers and the Caisse are extremely serious matters,” defended his former boss.
This is the reason why, following a first article in the Journal published in February 2019 and mentioning the links of Martine Gaudreault, a former VP of Otéra, with organized crime, the Caisse de dépôt has launched an investigation to understand the extent of the situation.
Summary of survey results
At the end of an investigation that cost $5 million, the Caisse unveiled a five-page summary of the results of this investigation in May 2019. Without naming anyone, the Fund noted that “four people linked to Otéra” who allegedly committed “failures” and “who allegedly acted independently of each other”, “no longer held any position” within its subsidiaries.
Alfonso Graceffa, the former director of Otéra, is one of those who have been relieved of their duties. The Caisse accuses him, among other things, of having accepted a cash payment of $15,000 at his place of work from an individual with a criminal past, as well as of having taken control of a company without report it to their employer.
Mr. Graceffa, who believes he was unjustly dismissed and defamed, is suing his former employer for $6.9 million. In particular, he believes that the anonymity of the summary of the results of the investigation has led to tarnishing his reputation, by casting doubt on who the person linked to organized crime was.
On this aspect, Mr. Sabia explained that the Caisse had to “find a balance” between its duty of transparency and respect for the personal information of the individuals involved, which was “not easy”.
To see in video
1683581449
#Otéra #Capital #subsidiary #CDPQ #closed #Michael #Sabia
