EDITORIAL: Taxpayers need answers on cozy government deals

Published May 15, 2024  •  2 minute read

The ArriveCAN app is pictured on Friday, March 25, 2022. Photo by Dax Melmer /Windsor Star

Reports detailing how three contractors involved in the development of the ArriveCAN app received contracts worth more than $1 billion over the past 13 years raise questions about the federal procurement process.

Advertisement 2

This advertisement has not loaded yet, but your article continues below.

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

Unlimited online access to articles from across Canada with one account.Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalists and the next generation of journalists.Daily puzzles including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

Unlimited online access to articles from across Canada with one account.Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalists and the next generation of journalists.Daily puzzles including the New York Times Crossword.

REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.

Article content

A Globe and Mail report, May 13, details how Coradix Technology Consulting, Dalian Enterprises and GCStrategies were awarded hundreds of contracts. All three have been suspended from government contracts after shocking revelations regarding their involvement in the ArriveCAN boondoggle.

Article content

A federal auditor’s report earlier this year estimated the cost of developing ArriveCan at around $59.5 million; it was scathing in its assessment of Canada Border Services Agency’s bookkeeping.

“The Canada Border Services Agency’s documentation, financial records, and controls were so poor that we were unable to determine the precise cost of the ArriveCAN application,” the auditor said.

While earlier contracts were worth more than $1 billion, the companies did not necessarily receive all of that monetary value. Coradix and Dalian were paid a total of $635 million through federal contracts since 2003. GCS Strategies received $59 million since 2017, according to public accounts documents obtained by the Globe.

Advertisement 3

This advertisement has not loaded yet, but your article continues below.

Article content

Dalian, which describes itself as aboriginally-owned, received contracts under the government’s Procurement Strategy for Indigenous Business.

David Yeo, Dalian’s founder, is the great-grandson of a former Ontario First Nations chief.

Indigenous Services Canada has launched a probe of the Coradix-Dalian deals to ensure they comply with the terms of the program, which require one-third of the work to be done by an Indigenous partner or Indigenous subcontractors.

RECOMMENDED VIDEO

We apologize, but this video has failed to load.

Why is there such a reliance on outsourcing, given that the public service continues to grow at record rates? The Parliamentary Budget Officer reported last year that the amount of money the government spends on outside services has increased by over a third since 2017-2018.

“As of November 2022, nearly $10 billion have been spent on professional and special services this year — a record level compared to previous years over the same period,” the report said. Expenditures on professional and special services were projected to be $19.5 billion in 2023-24.

One billion dollars paid to three contractors is a lot of money that could have been spent on health care or housing.

Taxpayers need assurance their money will be spent wisely and not end up funding cozy deals with insiders.

Article content

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Toronto Sun – https://torontosun.com/opinion/editorials/editorial-taxpayers-need-answers-on-cozy-government-deals