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MONTREAL — A former construction boss has delivered groundbreaking testimony about a system of corruption in the industry that saw him pay Canada’s most powerful Mafia family a 2.5% cut on public contracts.

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Lino Zambito told Quebec’s corruption inquiry about a cartel-like operation lording over the construction industry in the province and he said he had no choice but to participate.

He described a system that drove up the cost of public works during his testimony Thursday, perhaps the most damning to be heard at the inquiry so far.

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Only certain companies were allowed to bid for public contracts, he said. They would set their prices artificially high. They reached a group decision on who would submit the lowest bid. Then they took turns winning contracts, he said.

And when it was all said and done, he said, the Cosa Nostra claimed a percentage.