Press release

Montréal, May 11, 2010– While the allegations reported today by journalist
Marie-Maude Denis in a story aired on Radio-Canada and RDI involve individuals and not the Fonds de solidarité FTQ, the latter would like to set the record straight concerning this serious and troubling situation. The allegations concern kickbacks that individuals may have demanded from entrepreneurs in exchange for Fonds financing. Unaware of this practice, the Fonds is taking this matter very seriously. 

None of the companies mentioned by the journalist obtained financing from the Fonds or its entities; the requests were refused for business reasons. As regards land in Laval on which a Métro supermarket currently stands, neither the Fonds nor its entities owned the land at the time it was sold. The fact is that the Fonds immobilier had sold its share several months before; hence, there was no link with the sale to Métro. Fond shareholders were not adversely affected in any way in these matters. The Fonds is proud to announce that its governance rules were effective and respected.

Neither the Fonds nor its entities were informed of the demands for kickbacks or payments by entrepreneurs to anyone whomsoever. If such events did indeed take place, it was without the Fonds’ knowledge, and such actions would be completely unacceptable and reprehensible. As the case may be, the entrepreneurs involved should complain to the appropriate authorities.

The Fonds would like to point out that it is strengthening its governance practices and rules as part of a process of continuous improvement. For instance, most of the outside directors, who are independent of both the Fonds and the FTQ, sit on each of the organization’s sector investment committees, including those of the Fonds immobilier de solidarité FTQ, which are headed by outside directors who are well-known for their skills and integrity. As well, the Fonds de solidarité FTQ’s code of ethics and professional conduct contains a reporting clause, assuring employees of just and confidential treatment should they wish to report an ethical situation or concern.

With respect to the allegations against Jocelyn Dupuis and Jean Lavallée, the Fonds would like to state for the record that Mr. Dupuis has never served on any committees, not at the Fonds or its entities. As for Mr. Lavallée, he has not held any position on either the board of directors of the Fonds or its real estate entities for almost 15 months.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ helps drive our economy. With net assets of $7.0 billion as at November 30, 2009, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fonds is a partner, either directly or through its network members, in 2,000 companies. With its 571,000 owner-shareholders, the organization has helped, on its own or with other financial partners, to create, maintain and protect nearly 143,000 jobs. For more information, visit www.fondsftq.com.

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