Jacques Daoust approved Rona sale, says his former chief of staff

The former chief of staff to a cabinet minister who has just resigned contradicted his ex-boss Thursday at a special legislature hearing into the controversial purchase of hardware firm Rona Inc. by Lowe's.

Pierre Ouellet told committee members that JacquesDaoustwas informed about the intention of government agency Investissement Qubecto sell its 11 million Rona shares for $140 million in 2014, two years before Lowe's paid $3.2 billion for the Quebec giant.

Daoust, who was economy minister in 2014, has always maintained he and the government were not consulted about the sale of the Rona shares before it took place.

• What you need to know about theRonaaffair
• Jacques Daoustresigns

In an Aug. 19 statement when he announced his resignation,Daoustwrote he "wasn't informed of the intention of the administrators of Investissement Quebec to sell their shares in Rona."

Ouellet told the committee, however, thatDaoustknew of the intention to sell. He quoted his ex-boss as saying, "it's their (Investissement Quebec's) responsibility; they'll live with the consequences."

Daoustwas later named transport minister but resigned last week after some of Ouellet's 2014 emails were leaked to the media and which seemed to indicate the then-economy minister knew about the divestment of Rona shares.

Opposition slams Ouellet, Daoust's decisions

Quebec's opposition parties say the government did nothing to prevent a company considered important to the province's pride and identity from being sold to Americans.

Parti Qubcois MNAAlain Therrien said he believesInvestissementQubec's sale of its Rona shares was the result of a political order.

Amir Khadir ofQuebec Solidaire questioned what role Premier Philippe Couillard played in the sale and whether he knew about the divestment of shares before it happened.

Ouellet told the committee he never spoke about the Rona sale with the premier's office before this past June.

In 2012, then-premier Jean Charest authorizedInvestissementQubecto buy millions of Rona shares to thwart any hostile takeover by Lowe's of the company.

This year's deal between the two companies was a friendly one.

Ouellet'schronology of events

During today's legislative hearings,Ouelletpresented a list of events which took place in the fall of 2014, when when he saidInvestissementQubec(IQ)pressured him forDaoust'sapproval to sell the government'sRonashares.

• Nov. 17, 2014:OuelletaccompaniesDaoustto a meeting of the boardofIQ. Over the course of the day,Daoustasks himto check whether the sale of IQ'sRonashares would requireDaoustor the cabinet's authorization.
• Nov. 21, 2014:Ouelletcalls MarcPaquet, vice-president of legal affairs for IQ, to ask him what the threshold is.
• Nov. 21, 2014:PaquetanswersOuelletbyemail, sayingaccording to the law, the value of theRonashares doesn't require the authorization ofDaoustor the cabinet.
• Nov. 26, 2014: Jean-Jacques Carrier, vice-president and chief financial officer of IQ, asksOuelletbyemailifDaoustis "OK" with the transaction.
• Nov. 26, 2014:Ouellethas a meeting withDaoustabout Carrier's request.Daoust, based on the information he had previously gotten fromPaquet, saysthat since the decision falls underIQ's jurisdiction, IQwill have to live with the consequences.
• Nov. 26, 2014:Ouelletanswers Carrier's requestviaemail, writing "OK."

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