Gilles Vaillancourt has given into pressure from Quebec's Natural Resources minister, and has temporarily stepped down from the board of directors at Hydro-Québec.
Nathalie Normandeau asked the mayor of Laval to quit the board in light of allegations brought against him by two Quebec politicians.
In an exclusive interview with CBC's French-language service, Bloc Québécois MP Serge Ménard revealed Vaillancourt tried to offer him $10,000 in cash during a provincial byelection campaign in the Laval region in 1993.
Liberal MNA Vincent Auclair shared a similar tale, claiming that in 2002 Vaillancourt tried to give him a white envelope, which he refused.
Vaillancourt has categorically denied the allegations and threatened legal action against both politicians.
Normandeau said given the allegations, Vaillancourt's presence on the board could compromise Hydro-Québec's reputation among foreign industrial customers.
Last week, the mayor of Laval stepped down from his role as a member of the finances committee at the Quebec Union of Municipalities (UMQ).