Arab Canada News

News

Canada: National Defence suspends contracts with ArriveCan contractor after learning that the CEO of the executing company is an employee there

Canada: National Defence suspends contracts with ArriveCan contractor after learning that the CEO of the executing company is an employee there

By م.زهير الشاعر

Published: February 29, 2024

Just one day after the federal government announced a review of its program to support Indigenous peoples, CTV News learned that the CEO of the company that prompted the review is an employee of the Department of National Defence (DND).

David Yu is the CEO of Dalian Enterprises, which received $7.9 million for its work on implementing ArriveCan.

The Department of National Defence confirmed that Yu is currently working with them but has been suspended.

A spokesperson for the Department of National Defence told CTV News in an email: "Due to the serious nature of the concerns raised, the DND is launching an internal investigation into the matter."

Adding, "This person has been suspended during the investigation, and we are in the process of suspending contracts with Dalian."

The spokesperson for the Canadian Department of National Defence also told CTV News that the investigation will be completed in due course but did not specify how long it will take.

Explaining: "We take these concerns seriously and the internal investigation will be thorough."

The Globe and Mail first reported that the company presents itself as Indigenous-owned and worked with another company, Coradix, on the ArriveCan app.

According to The Globe, the two companies received $400 million in government contracts.

Also, Indigenous Services Minister Patty Hajdu announced yesterday a review of how contracts are awarded to Indigenous-owned companies.

The government's policy is that five percent of the total value of government contracts will go to Indigenous companies by 2024.

Two sources told CTV News that Yu works in the civilian side of the DND as a member of the Materiel group.

It is worth noting that Dalian Enterprises has received multiple contracts from the Department of National Defence (DND), in addition to the Canada Border Services Agency, the RCMP, and a number of other departments.

No additional information was available from Yu’s side to comment on this matter.

Comments

Related