An internal investigation is underway into allegations of a conflict of interest stemming between municipal worker Robert Marcil and construction contracts awarded by the city.

Marcil, an 18-year veteran employee in various municipal positions was most recently employed as director of the city's public works department before quitting his job this summer.

Marcil has come under scrutiny by internal investigators about a trip to Italy in October 2008, which he allegedly took with several entrepreneurs who had been awarded major contracts with the city.

The entrepreneurs included the president of Garnier Construction, Joseph Borselino, the ex-director of FTQ Construction, Jocelyn Dupuis, and Genivar's vice-president of municipal infrastructure projects, Yves Lortie.

Marcil didn't give any specific reason when he officially resigned in July, said Jean-Yves Hinse, the city's human relations director.

"We want to be sure that during his job with the City of Montreal, he didn't make any bad decisions," said Hinse.

Hinse said it wasn't clear who paid for the trip, but that it was taken on Marcil's personal vacation time.

"For us, it's bad. Clearly he made a bad decision to accept to travel with an entrepreneur," said Hinse, but added the investigation isn't over.

"The only thing that we have against Mr. Marcil is that he accepted to travel with an entrepreneur, that's it," said Hinse.

Still, the Mayor Gerald Tremblay said he's not taking any chances.

"It's zero tolerance. We're not going to accept people that put in jeopardy the integrity of the institution we represent. Myself as mayor, and my team of elected representatives of the City of montreal," said Tremblay.

"Not an isolated case": Harel

Louise Harel said the potential scandal is representative of a larger problem.

"It's not an isolated case," she said, referring to a handful of files police are investigating for alleged conflicts of interest within the mayor's administration. "I think it's very bad for our city and we have to make a very major clean up."

Tremblay's administration has already been scrutinized for other alleged conflicts of interest, including awarding a $355 million water-meter contract to a consortium of companies including one owned by entrepreneur Tony Accurso.

Former executive committee member Frank Zampino admitted he accepted an invitation to spend time on Accurso's yacht while the water meter contract was up for tender.

Councillors Sammy Forcillo and Cosmo Maciocia came under fire in June after La Presse reported that a mobster asked contractor Paul Sauve to pay off two city councillors to guarantee the city hall roof contract. Sauve says he never paid the bribe.

Perception is reality?: Libman

"It certainly does not look good for the Tremblay administration and it reeks of scandal," said former C�te Saint-Luc mayor and Montreal city councillor Robert Libman.

Still, Libman is unconvinced anything scandalous actually happened.

"Because of how cynical the public is to these things, any perceived conflict of interest is almost like a conflict of interest in itself," he said.

"Once you're in this perceived conflict of interest, your goose is cooked, there's no turning back. You're tarnished, you're gone, you're expendable."

The city said it's unclear as to how long their internal investigation into the Marcil matter will take, and may refer it to police.