The leader of the Opposition is questioning whether close relationships with Newfoundland and Labrador Premier Danny Williams may have helped a group of companies win government support for a new fibre optic network.

The provincial government has decided to put $15 million into a $52-million network planned by a consortium including Rogers Communications, Persona Communications and MTS Allstream.

Danny Williams worked with two principals in the fibre optic deal while he owned Cable Atlantic.
(CBC)

Williams has close ties to at least two of the players behind the proposed link, which will provide an alternative to the monopoly maintained by Bell Aliant.

Both Persona chief executive officer Dean MacDonald and Ken Marshall, a vice-president at Rogers Communications, worked for Williams when he owned Cable Atlantic.

As well, the Williams government appointed both MacDonald and Marshall to the board of Newfoundland and Labrador Hydro.

Liberal Leader Gerry Reid says those connections are too close for comfort.

"The ties are close, and I'm wondering if this relationship had anything to do with the province giving $15 million to this company," said Reid, who described MacDonald as Williams's "first lieutenant."

Williams was out of town and unavailable for comment. However, the premier's office maintains there's no conflict of interest and he will not gain anything from the deal.

Williams sold Cable Atlantic to Rogers, but no longer holds any financial interest in the company.

Innovation and Trade Minister Trevor Taylor said the announcement of government support for the deal — which he said was made strictly because it made good business sense — was held off in part so that government could scrutinize the connections between the premier and his former associates.

Williams, Taylor said, excused himself from the final cabinet vote to avoid the appearance of a conflict of interest.

"If we have to stop doing business as a government with people who are friends of the premier or who the premier had some involvement in his previous life, then … we'll do very little business with anybody," Taylor said.