A private company that lost a contract with the Newfoundland and Labrador ferry service blames Liberal MHA Yvonne Jones for sinking its bid.
CAI says it was the lowest bidder to provide the ferry service across the Strait of Belle Isle.
Jones, who represents the southern Labrador district of Cartwright-L'Anse au Clair, spoke out against the company, saying that it has provided poor service through other contracts, including the joint venture CAI Nunatsiavut Marine.
CAI vice-president Chris Newman said the provincial government told the company two days ago that its bid did not meet their requirements.
"We're very disappointed in the slander and the complete and utter lies," Newman told CBC News.
"We feel Miss Jones has both interfered with and influenced the Public Tender Act."
The government has not yet announced the winning bidder for the run, which connects northern Newfoundland with communities in southern Labrador and eastern Quebec.