Tremblay defends bureaucrats' severance

Montreal Mayor Grald Tremblay is defending generous severance packages for two senior bureaucrats dismissed Tuesday in connection with the city's contentious water-meter contract.

City manager Claude Lger and thedirector of corporate affairs, Robert Cassius de Linval, werefired after the damning report released by the city's auditor general.

The report said elected officials were not given sufficient information before adopting the $355-million contract, the biggest ever awarded by the city.

But Tremblay fired the two menwithout cause, meaning theycould keep the equivalent of one year's salary. Lger is entitled to $244,000 and Cassius de Linval $180,000.

The news was a shock to Tremblay's main opponent in the Nov.1 municipal election.

"I think that all Montrealers will be scandalized," said Vision Montreal leader Louise Harel.

Tremblay said his actions were intended to protect the city.

"There's always legal recourses and if there's legal recourses it means it's going to cost more in lawyers' fees than the compensation that I've given them,"he said.

Costs unknown, mayor says

In a related development, there are reports the mayor's decision to cancel the water-meter contract after the auditor's report will cost nearly $75 million.

The TVA television network cites a document produced by the GNIeau consortium, which was awarded the contract in November 2007.

In the document, the consortium is said to be demanding $21 million for the water-transmission system;$10 million in fees for sub-contractors already hired, and $26.3 million for the loss of profits related to the termination of the 25-year contract.

After announcing the cancellation of the contract Tuesday, Tremblay said that he did not know how much the move would costand that he did not expect those figures before the election.