Company at Centre of ArriveCan Controversy Got $107 Million in Government Contracts

Company involved in ArriveCan scandal awarded $107 million in government contracts

March 6, 2024 TruthUSA

The company at the center of the ArriveCan controversy has been awarded $107 million in federal government contracts since 2011.

Roch Huppé, the comptroller general of Canada, disclosed that GC Strategies and its predecessor Coredal secured over 100 federal government contracts during that period.

“Between Jan. 1, 2011, and Feb. 16, 2024, departments reported a total of 118 contracts with that supplier, amounting to $107.7 million,” Mr. Huppé informed the House public accounts committee on March 6.

Mr. Huppé also mentioned that the release of this updated information is part of a broader initiative to ensure accurate information is provided to Canadians through the federal government’s procurement database.

“Providing precise and transparent information about our contracts is crucial to maintaining the trust Canadians have in their institutions,” Mr. Huppé emphasized to the committee.

Mr. Huppé further indicated that he has requested a comprehensive report on contracts involving two other companies associated with the controversy—Dalian Enterprises and Coradix Technology Consulting.

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“I have requested all institutions to validate the number and value of all contracts they have awarded to GC Strategies, Dalian, Coradix, and joint ventures between Dalian and Coradix,” he stated. “All institutions must ensure the information regarding these contracts on the Open Government portal is complete and accurate.”

Apart from that, Public Services and Procurement Canada (PSPC) announced on March 6 that it was suspending the security status of GC Strategies, preventing the company from engaging in contracts with security requirements. PSPC also disclosed a suspension of all work orders involving Coradix Technology Consulting, as well as any new government work for the company.

On March 1, the status of Dalien Enterprises was suspended after news emerged that the company had received millions in government contracts while its CEO was employed at the Department of National Defence.

There have been concerns raised about the increasing costs of ArriveCan, an app created to verify the COVID-19 vaccination status of travelers entering Canada.

In February, Auditor General Karen Hogan presented a report on ArriveCan. The report highlighted a “glaring disregard for basic management and contracting practices” in the development and implementation of ArriveCan. While the report estimated the app’s development cost at $59.5 million, the exact figure could not be determined due to missing and incomplete documentation.

The initial estimated cost of the app was around $80,000.

Mr. Huppé and other officials faced probing questions from MPs at the committee.

“There seems to be a lack of oversight across government departments,” remarked Conservative MP Kelly Block. “One of the primary reasons for this, as we heard yesterday, is the lack of enforcement of the Financial Administration Act across departments,” she stated, referring to testimony heard on March 5 that up to five accountants had raised concerns about the ArriveCan app with management but were hesitant to speak out.

“Given that the ArriveCan issue has been in the news for the past 18 months, who in your department is being held accountable for the failures of the ArriveCan app?” Ms. Block questioned.

“We take this very seriously and are devising an action plan,” Mr. Huppé responded.

“I’ve instructed… the chief audit executives of every department about a week and a half ago to ensure a review of their procurement practices in the upcoming year, as an audit within their department,” he added. “So, there are measures being taken to ensure our accountability is carried out.”

NDP MP Heather McPherson mentioned that community organizations in her Edmonton constituency often face significant obstacles to secure even a fraction of the funds spent on the ArriveCan app.

“What do I tell the people and organizations in my region who are seeking funding from this government but perceive this extremely unfair process?” she asked Ms. Hogan, another witness at the committee.

Ms. Hogan expressed her concern that the response to the ArriveCan app controversy might entail adding more rules to an already complex process instead of enforcing existing rules.

“I’m concerned that there may be a push for tighter or stricter rules, or an additional layer, which could restrict competition,” Ms. Hogan explained. “The government’s operations need to continue moving forward, but the rules must be adhered to in order to facilitate that, which unfortunately did not happen in this case.”

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