Auditor claims $160 million Indigenous contract awarded to non-Indigenous venture
A former auditor for the government’s indigenous procurement program revealed that a $160 million contract intended for indigenous businesses was actually awarded to a joint venture acting as a front for a non-indigenous company.
Garry Hartle, a senior compliance auditor for Indigenous Services Canada, testified before the parliamentary public accounts committee on Dec. 10 that Pedabun 35 Nursing Inc. and the Canadian Healthcare Agency formed a joint venture to provide nursing services to remote indigenous communities. However, he discovered that this joint venture was merely a “shell” for a non-indigenous company.
He stated, “My audit uncovered that the joint venture was a guise for the non-indigenous Canadian Healthcare Agency (CHCA). This entity exploited the owner of Pedabun 35 Nursing Inc. to secure and carry out a significant set-aside contract.”
Hartle classified the $160 million contract as fraudulent and urged the government to involve the RCMP in the investigation.
He said, “I presented substantial evidence of fraud and recommended that it be handed over to the RCMP for investigation. However, they opted to avoid any controversy and did not pursue it.”
Related Stories
Conservative MP Garnett Genuis noted that CHCA, despite being removed from the Indigenous Business Directory, continued to secure government contracts.
Indigenous Services Minister Patty Hajdu announced that she had requested an external review of the PSIB in response to Hartle’s accusations, calling them “alarming.”
She expressed, “If adequate safeguards are not in place to uphold the integrity of a program such as this, it undermines confidence in the program.”
The Canadian Healthcare Agency did not provide a comment to The Epoch Times before the article’s publication.
