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Published: February 14, 2024
Public Services and Procurement Minister Jean-Yves Duclos told reporters on Wednesday that all federal government contracts with GC Strategies – the company at the center of the Auditor General's scathing report on the federal government's ArriveCan app – were suspended in November 2023 "as a precaution."
The Trudeau government faced criticism on Monday after Auditor General Karen Hogan reported that the government overpaid for the application and that the Canada Border Services Agency (CBSA) mishandled the file.
The app cost taxpayers around $60 million, a price much higher than initial estimates. But even that $60 million figure is an estimate, Hogan said, because record-keeping at the Canada Border Services Agency was extremely poor.
Conservative leader Pierre Poilievre sent a letter to the RCMP Commissioner on Tuesday asking the police to investigate the development of the ArriveCan app.
Duclos said in French: "What the Auditor General found on Monday is unacceptable," adding, "We noticed concerning results, not only regarding GC Strategies" but also for other companies that worked on the app.
Radio-Canada verified that the 129 contracts the federal government made since 2015 with GC Strategies – a private IT recruitment company based in Ottawa – added up to more than $239 million. La Presse first reported this figure.
Just over $158 million of that amount – just over 66% of the total – came from contracts awarded by the Canada Border Services Agency.
The second and third largest government clients of GC Strategies since 2015 are the Treasury Board ($21 million) and the Natural Sciences and Engineering Research Council of Canada ($17 million).
Duclos said the government has implemented many of the recommendations in the Auditor General's report of November 2023 "the moment the Canadian government realized that in managing ArriveCan there was a glaring lack of consideration, good management, and information sharing.
Conservatives demand an investigation
Conservative MP Michael Barrett said the Conservative Party of Canada is calling on the Auditor General to open an investigation into every government contract with GC Strategies.
Barrett added: "GC Strategies was taking public servants out to taste whiskey and luxury evenings, so the rules that were not followed are an important question that our known Auditor General will uncover," referring to details in the Globe and Mail report that were later revealed.
At least 28 of GC Strategies' contracts gathered by Radio-Canada were awarded without competition.
La Presse reported that one of the addresses linked to GC Strategies and listed in the business directory leads to a single-story house in Ottawa, while the second address leads to a law office on Carling Street in the capital.
The IT company owners did not make any political donations, according to the Canadian election database.
Barrett said, "Most people would find it incomprehensible" that a company operating out of a single-story house holds contracts worth more than $200 million with the federal government.
Treasury Board President Anita Anand said the poor record-keeping mentioned by the Auditor General is "unacceptable."
She continued: "It is very important for us to ensure that processes are followed." "I know an investigation is underway, and I know we will take the right action once we have the results of that investigation."
Minister of Northern Affairs Dan Vandal said that a scandal of this type creates "difficulties for any government."
He added: "The government operates on trust, and on the surface, it doesn't look good."
Transport Minister Pablo Rodriguez said in French: "If someone made a mistake, they have to pay the price."
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