Pierre Karl Péladeau intervention investigated by Quebec's ethics watchdog

Quebec's ethics commissioner has launched a formal investigation into Pierre Karl Péladeau's intervention before a legislative committee looking into the sale of Mel's Studio, a Montreal film production company on which Quebecor was bidding.

Péladeau is the majority shareholder of the Quebec media giant, and he's come under fire in recent days for saying he will not divest himself of the company built by his father, should he become Parti Québécois leader.

An article in La Presse published today revealed that last July, Péladeau appeared before a legislative committee hearing to push for Mel’s Studio – a large Montreal film studio that's up for sale – to remain in the hands of a Quebec business.

Only two companies were in the running to purchase Mel’s: Quebecor Media International and Clearlake Capital, an American investment firm.

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Péladeau posted the La Presse article to his Facebook page Friday and defended his intervention, saying it was good for his constituency and the Quebec economy.

"This is my job, to make sure we will continue to build a strong economy in Quebec," Péladeau told CBC News.

He used the controversy as an opportunity to blast Jacques Daoust, the minister for the economy, innovations and exports.

"I think it's my job to make sure we can find solutions to find jobs," Péladeau said. "If the minister doesn't want to do his job, I'm going to do his job in his place."

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Daoust called the situation delicate and difficult, but he refused to answer a Radio-Canada reporter’s question about whether he felt Péladeau was in a conflict of interest.

“A conflict of interest? Well, I think you’d have to ask him how he feels about this file,” he said.

Daoust did say he was surprised when Péladeau raised the issue before the legislative committee.

"If I had discussed it openly, it could have scared off the parties, and it could have tainted the transaction," he said. 

In his post on Facebook, Péladeau said he would contact the province's ethics commission to clarify the situation. 

"If I put myself in a position of apparent conflict of interest according to the Code of Ethics and Conduct for Members of the National Assembly of Quebec, I apologize ," Peladeau wrote.

The ethics commission lost no time in contacting Péladeau to let him know the commissioner would be launching an investigation of his own accord.

In a news release, Ethics Commissioner Jacques Saint-Laurent said the commission can take the initiative to investigate a possible breach of the code of conduct, as long as it's given notice to the member in advance.

The investigation will be done in private, however, the report will be tabled in the National Assembly as soon as it is finished.

Mel's Studios in Montreal's Technoparc has been the location for all the big Hollywood blockbusters in production in Montreal for the past 12 years.  Built by Mel Hoppenheim, the studios – along with the  prop and equipment rental location – was sold to Vision Globale in December 2012.

Vision Globale put the company up for sale this past summer.