A $770 million contract signed off on by Kathleen Wynne when she was Transportation Minister in 2010 is racking up millions in penalties revealed PC Infrastructure Critic Frank Klees.
The contract, entered into between Metrolinx, the government’s agency responsible for transit planning, and Bombardier Transportation obligated the government to buy 182 LRT vehicles with specified delivery dates.
“The first delivery date has come and gone” said Klees. “The reason the government breached the obligations under the Bombardier contract is because the transit projects for which those vehicles were intended never materialized.”
According to Klees, taxpayers are already on the hook for more than $70 million in penalties under the terms of that contract and the amount is growing by the day.
“Given the Premier’s newly-minted doctrine of transparency, will she tell us how many millions in penalties Ontario taxpayers are now on the hook for and will she commit today to provide us with a copy of that contract” said Klees.
Not surprisingly, the Premier refused to answer the question and based on the Minister of Transportation and Infrastructure’s response, he was caught off guard by the revelation.
“This is just one more example of gross mismanagement by this government” said Klees. “The waste of tax dollars is endless”. “Not only was this contract signed before the transit projects were confirmed,” Klees charged, “but the government overpaid by more than 30% because no competitive bids were solicited.“
“To add insult to injury, municipalities are now being blackmailed to absorb those over-priced vehicles into their local transit projects to cover up for this latest example of mismanagement and incompetence on the part of this government.”