Paradis discussed Parliament reno deal: Sauv

The Montreal businessman at the heart of a brewing government contract scandal is contradicting a Conservative cabinet minister's claim that they didn't discuss the deal.

Natural Resources Minister Christian Paradis said Wednesday that he never talked with Paul Sauv about the contract during a Tory fundraiser in 2009.

But Sauv told The Canadian Press on Thursday that the pair did discuss the contract at the fundraiser and that Paradis actually congratulated him on it.

The RCMP is investigating a $9-million contract awarded to Sauv's company in 2008 to renovate Parliament's West Block.The Mounties are looking into the relationship betweenSauv and Gilles Varin, a Tory-connected businessman.

Sauv says he hired Varin to help win the contract and paid him $140,000.

Prime Minister Stephen Harper has insisted there's no evidence of wrongdoing by the Conservatives, emphasizing that no members of his government are under investigation in the matter.

But there are strong links between Sauv, Varin and the Tories. Elections Canada records show that Sauv donated $1,100 on Jan. 26, 2009, to the Conservative riding association in Bourassa, and gave $1,000 to Tory candidate Hubert Pichet in La Pointe-de-l'Ile.

Varin not a party member: Tories

Conservative talking points sent out Thursday sought to distance the party from Varin.

"This individual is not a member of the Conservative Party of Canada. In fact, we have no records of him ever being a member of our party," the message said.

"This individual is not and has not been an organizer of the Conservative Party of Canada. This individual has been an occasional donor to both the Conservative Party of Canada and the Liberal Party of Canada."

During Thursday's question period, government House leader John Baird pointed out that Varin also donated money to Liberal MP Denis Coderre.