Irregular land sales cast shadow on mayor's office

Montreal mayor Grald Tremblay cancelled a scheduled public appearance Friday afternoon as questions surrounding a dubious real estate transaction continue to hound his office.

Tremblay was supposed to give a speech for the 20th anniversary of the Dfi Canderel (Canderel challenge), a corporate fundraiser for cancer research. But his office said he wouldn't be able to make it.

The cancellation comes the same day asthe influential La Presse newspaper called for Tremblay'sretirement from politics, as the city gears up for municipal elections six months from now.

Tremblay has come under fire after a second report from the city's auditor's office suggested Montreal's general manager, Claude Lger, was fully aware of risks surrounding the controversial Faubourg Contrecoeur project, which involved the sale of land far below market value.

In 2007, Montreal's Housing and Development Corporation (SHDM) sold the land to Construction Frank Catania for about $4 million even though its market value was $31 million. The sale netted a $5 million loss for the city, according to the auditor.

The report echoed findings detailed in an earlier report from the auditors office, made public Tuesday, that investigated 20 real estate transactions in which rules were violated or ignored altogether.

The mayor has defended Lger, saying hes satisfied with his answers regarding questions raised in the auditors report.