Montreal mayoral candidate and incumbent Gérald Tremblay hopes to be re-elected for a third term. (Paul Chiasson/Canadian Press)Quebec's chief electoral officer said he has been unable to corroborate allegations that Mayor Gérald Tremblay's party violated campaign financing rules during the 2001 municipal election.

The finding is good news for Tremblay, who has faced a series of controversies in lead-up to Sunday's municipal election.

An investigation was launched following newspaper reports that in October 2004, a high-ranking official with the Montreal Island Citizens Union party (MICU), now known as Union Montreal, asked officials in some boroughs to help the party pay a $15,000 debt. The money was owed to a communications firm for services rendered during the 2001 election campaign.

The money allegedly couldn't be paid by MICU because it contravened the law capping spending by political parties during an election campaign.

In a statement, Marcel Blanchet said four investigators spent more than 350 hours visiting 19 Montreal boroughs and 15 municipalities that used to be part of the city and met with 28 witnesses.

The chief electoral officer said it was impossible to prove the transactions ever happened or that the party owed Octane Communications any money.

Blanchet said investigators were unable to track down bills from Octane — with the exception of one bill paid by officials in Outremont relating to a separate contract.

Blanchet said Octane's president also denied that MICU owed the company any money.

Tremblay has argued that the allegations were part of a smear campaign against his administration.

Tremblay says ethics cleanup a go at city hall

Meanwhile on Wednesday, Tremblay said his administration has brought in measures to prevent collusion and fraud in public works contracts.

Tremblay made the comments during an interview with CBC Montreal on Wednesday morning as the municipal campaign enters its last stretch.

The issue of ethics and public works contracts have dominated the campaign for mayor's office, with both major parites tainted by allegations of corruption.

Tremblay said he was happy to see a newspaper report published Wednesday in which the city's new director suggests Montreal has lost control of its public infrastructure projects.

'The priority at the City of Montreal, internally is integrity, loyalty and respect.' — Montreal incumbent mayor Gérald Tremblay

Rachel Laperrière told Montreal newspaper La Presse that city hall has handed too much power to outside consultants.

"I'm really pleased for the report," Tremblay said during his studio interview. "I had it on Monday. I read it. It's [talking about] exactly [the] things that we have to do."

"There are things for the private sector that we have to evaluate, and the elected representatives have to have more information [before allocating public contracts]."

Corruption not unique to Montreal, mayor says

Changes are already being implemented at city hall to clean up the call-for-tender process for public contracts, Tremblay added.

"People think that because we are in an electoral campaign that we don't continue to manage the city," he said. "We have to harmonize certain procedures at the city that were different depending on the services and the borough.

"I think one thing that has to be evaluated is best practices. The priority at the City of Montreal internally is integrity, loyalty and respect, and there is a new conduct guide."

Tremblay said the guide includes anti-corruption and anti-collusion clauses.

His administration has been rocked this year by allegations of shady dealings related to big public works contracts.

Tremblay was forced to cancel a long-awaited contract for water meters that was 10 years in the making after his former right-hand man and executive council president Frank Zampino was personally linked to Tony Accurso, a construction entrepreneur who was part of the winning $355-million bid.

Then a scathing investigation by CBC's French language service suggested widespread collusion among a small group of construction firms vying for Montreal's public works contracts.

Last week, Tremblay's rival mayoral candidate, Vision Montreal head Louise Harel, fired her second in command, Benoit Labonté, the former leader of the party, after it was revealed that he accepted a $100,000 campaign donation from Accurso.

Tremblay says corruption and collusion is not unique to Montreal but has tainted all major cities in the province.

Quebec voters will elect their new municipal councils on Nov. 1.