Former St. Michael’s Hospital executive Vas Georgiou and ex-Bondfield Construction president John Aquino were convicted of fraud in a case involving the $300-million expansion of a downtown Toronto hospital. The guilty verdicts were handed down by Superior Court Justice Peter Bawden in a Toronto courtroom.
Justice Bawden emphasized the overwhelming evidence of dishonest behavior by the defendants during the procurement process. Insider information shared by Georgiou with Aquino through secret emails was deemed highly confidential and intended to tilt the bidding process in favor of Bondfield. This conduct was considered objectively dishonest, especially within the tightly regulated public procurement framework.
The judge expressed concerns about the risk posed to the entire public contracting process, highlighting the importance of maintaining public confidence in the fair use of funds for infrastructure projects. The dishonest actions of the defendants were seen as compromising the integrity of the procurement process and potentially discouraging qualified bidders from participating in future projects.
Following the verdict, Aquino responded with disbelief, while his lawyer Alan Gold hinted at potential legal challenges. Georgiou’s lawyer, Peter Brauti, refrained from commenting until sentencing.
The trial revealed that Georgiou and Aquino collaborated between 2013 and 2015 to manipulate the procurement process in favor of Bondfield. The prosecution argued that their pre-existing commercial ties represented a conflict of interest that was not disclosed, undermining the transparency and fairness of the contracting process.
Despite the defense’s assertion that the rule violations did not impact the fairness or cost of the project, Justice Bawden found the illicit communications deprived the hospital and the government of a transparent procurement process. Aquino, removed as Bondfield’s president in 2018 amid financial troubles, faced further legal challenges related to the company’s insolvency.
The construction work at St. Michael’s Hospital, initially scheduled for completion in 2019, faced delays due to the contractor’s financial issues. The project, including a new patient tower and expanded facilities, is now expected to finish next year. Unity Health, the hospital’s parent organization, affirmed its commitment to robust procurement processes following the criminal investigation.
The case underscored the significance of maintaining integrity in public contracting processes and the severe repercussions of fraudulent activities in the construction industry.