Montréal, May 12, 2009 – Following an internal audit, the Fonds de solidarité FTQ (“Fonds”), the sole limited partner of Solim, announced today, by mutual agreement, that Solim will not renew its management contract with Guy Gionet.
On May 1, 2009, the Fonds asked its comptroller to investigate whether a $1.1 million loan granted by Solim for a revitalization project on Montréal’s South Shore was consistent with the transaction documents. The report, filed yesterday, revealed two important facts.
First, the Fonds never owned or held the mortgage for the land and building housing a bar or had any intention of becoming the owner or lender. Second, the audit revealed that the transaction documents executed in September 2008 in respect of the $1.1 million loan to 9124-6215 Québec Inc. did not reflect the intention of Solim’s advisory board when it signed off on the deal in March 2008.
“The audit shows that part of the loan was used to buy the building, which was neither indicated in the authorizing documents nor the intention of Solim’s advisory board. That said, the guarantees obtained are consistent with the authorization and sufficient to cover the entire amount loaned. We have informed the borrower that Solim will not renew the loan when it falls due in September,” said Yvon Bolduc, President and Chief Executive Officer of the Fonds de solidarité FTQ.
“The management of our real estate arm Solim will be turned over to its vice-president of finance, Monique Cardinal, until further notice,” added Mr. Bolduc.
Continuous improvement
Last week, the Fonds de solidarité FTQ appointed a majority of independent members (i.e. no affiliation with either the FTQ or the Fonds de solidarité) to the Solim advisory board. “The board’s extensive experience and expertise will support Solim’s continuous improvement efforts, notably to implement best real estate practices,” concluded the CEO.
About the Fonds de solidarité FTQ
With net assets of $6.2 billion on November 30, 2008, the Fonds de solidarité FTQ is a development capital fund that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs at home and further Québec's development. The Fonds is a partner, either directly or through its network members, in 1,881 companies. Thanks to its almost 575,000 shareholders, the organization has helped, on its own or with other financial partners, to create, maintain or protect over 126,000 jobs. For more information, visit www.fondsftq.com.
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Information: The telephone numbers below are for journalists and other media representatives only.
Source: Josée Lagacé
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ
Telephone: 514 850-4835
Mobile: 514 707-5180
E-mail: jlagace@fondsftq.com