Formula E: the opposition denies having endorsed a “fiscal fiasco”

Sarah Daoust-Braun
The leader of the opposition Lionel Perez

Sarah Daoust-Braun with QMI Agency

Monday, 18 December, 2017 17:03

UPDATE
Monday, 18 December, 2017 17:08

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The leader of the opposition Lionel Perez has defended itself Monday for having endorsed a “fiscal fiasco”, as described by the mayor Valérie Plant. According to her, the administration of Denis Coderre was aware since the month of may of the bad financial shape of Formula E.

• READ ALSO : This is the end for the Formula E in Montreal

“The management of the race, the financial model, it is by Montreal is electric,” said Lionel Perez. “Apart from the decisions taken at the executive committee and the municipal council, the discussions that were made between Montreal it is electric and Formula E are not the kind of discussions that are shared with the authorities”, he added, specifying that the credit margin of $ 10 million, for example, has been passed upstream in December 2016.

For the head of the Movement, Montreal, formerly of Team Denis Coderre, there is a lack for now of the information to opine further on the subject.

He believes that the administration’s decision to Valerie Plant, to cancel permanently the holding of the Formula E is “justified” if the figures advanced by the latter are “true and verified”.

At a press conference, rather than in the day, the mayor explained that a new race would be between 30 and $ 35 million, and the organizer Montreal is electric (MCE) is facing “$ 6.2 million of unpaid bills” in addition to having used almost the full line of credit of $ 10 million granted by the City.

“It will have to wait for the balance sheet and the financial statements on the part of MCE. We believe that there is a big accountability that needs to be done,” said Lionel Perez. The NPO will file shortly its audited financial statements and make its balance sheet in January.

Montreal is electric refuses to take the blame

Montreal is electric (MCE) responded Monday afternoon to the decision of the administration Plant to put a definitive end to the adventure of the Formula E in the metropolis.

The non-profit organization formed by the City of Montreal to manage the event has offered its support and collaboration to the mayor Valerie Plant for the finalization of the folder and the negotiation of an agreement to withdraw from the international promoter of the event, Formula E Operations (FEO).

MCE rejects, however, the most critical event was the target. He believes that “despite a perception in the media is negative, mainly due to the cost of the event, the barriers to the movement and the constraints imposed on the citizens of the district, the event itself was a success,” one can read in a press release issued Monday.

Montreal is electric, has attributed his difficult financial situation of the grants which are not delivered. “In addition to the anticipated deficit, the debt of the event for the most part grants of only 11.55 $ million that had been promised by the office of the mayor and of which only 3.45 million $ have been delivered by the various levels of government$.”

The agency has also indicated that its participation in the development of the financial event was quite limited.

“The contract with the FEO has been negotiated by the mayor’s office, in collaboration with the lawyers of the City. MCE was established and involved to the very end of the process, only a week before the official announcement of the holding of the event in Montreal.”

MCE has also indicated that the mayor’s office was fully responsible for the grants and evenko took care of sponsorship business.

In sum, Montreal is electric keeps having “delivered the event successfully, and to the inside of the budgets that had been allocated”.