Police search Catania construction offices

Investigators with a special provincial police squad investigating allegations of collusion and corruption in Quebecs construction industry searched the offices of the construction firm F. Catania and Associates on Wednesday.

Provincial police would not give any interviews on the subject but said that they were executing a search warrant and would be questioning people inside the building. The investigation is still in its early stages, they said.

F. Catania and Associates is a partner with the City of Montreal in the controversial Faubourg Contrecoeur housing development.

In November of 2008, the citys auditor general found that the Socit d'habitation et de dveloppement de Montral (SHDM), the city's housing and development corporation, had sold the property to the company for a fraction of its value.

The money that the housing corporation received, ended up being spent on decontaminating the property.

The auditor called for a police probe into the SHDMs actions.

Last year, the companys owner, Paulo Catania, also made headlines when he was charged with extortion, harassment and uttering death threats against a man he had business dealings with.

Catania denied the allegations.