Labont bows out of city race

The former leader of the opposition at Montreal City Hall has quit the party just two weeks before the municipal election amid claims he had dealings with a businessman at the centre of a cancelled $355-million water-meter contract.

Benot Labont quit Vision Montral, resigning as leader Louise Harel's right-hand man,after media reports alleged he met with construction entrepreneur Tony Accurso in March 2008 and received a $100,000 campaign donation to fund his leadership bid for the party.

Labont also announced he is pulling his candidacy as city councillor, and won't even run as an independent.

The former opposition leadercategorically denied all claims and accused Montreal media of mounting a smear campaign against him. When he first addressed the allegations on Saturday he said he was prepared to resign as opposition leader but indicated he would still run for councillor in the Nov.1 re-election.

'A major housecleaning is needed at Montreal's city hall. We have to live, and accept to live ina glass house.' Vision Montral mayoral candidate Louise Harel

But on Sunday, Harel said that wasn't going to happen.The mayoral candidatetold reporters that Labont's explanationsabout his alleged relationship with Accurso "weren't satisfactory," prompting her to tell her right-hand man that "he had to leave."

"A major housecleaning is needed at Montreal's city hall, the citizens want it, and we [members of Vision Montral] have to be irreproachable," Harel said in French. "We have to live, and accept to live, in a glass house."

Harel did not reveal any details about Labont's explanation of his alleged relationship with Accurso.

Labont has urged the anonymous sources behind the media reports to submit official complaints to Quebec's chief electoral officer.

Harel announced her newright-hand manis Pierre Lampron,a Vision Montral candidate in the Vieux Rosemount district.

Ethics dominate Montreal city hall race

Labont's shocking resignation comes as current Mayor Grald Tremblay continues to weather a storm of criticism for his handling of the city's water-meter contract the largest public tender in the island's history.

The contract was cancelled after a scathing report by the city's auditor general, released earlier this fall,which claimed elected officials had received insufficient information before approving it.

Tremblay's governing Union Montral party also faces allegations of links to extortion and alleged Mafia-meddling over a $10.6-million contract to replace a roof at city hall.

Last week, reports of extensive Mafia control over infrastructure spending in Quebec prompted calls for a public inquiry into ties between government, business and organized crime.

Both municipal party leaders promised more transparencyin how they raise cash by posting campaign contributions on their respective websites.

Harel, Tremblay and Projet Montral leader Richard Bergeron appeared together Sunday night on Quebec's popular talk show Tout le monde en parle.

The three mayoral candidates taped their appearance on the Radio-Canada program on Thursday night, two days beforeLabont's resignation so the segmentdidn't reflect the campaign's unexpected twist.