SoVote

Context: House Hansard - 286 - Feb/27/24

Mr. Charles Sousa (Parliamentary Secretary to the Minister of Public Services and Procurement, Lib.)

Feb/27/24 4:42:36 p.m.
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Madam Speaker, our government takes its responsibility for the stewardship of public funds very seriously, and we are committed to ensuring that government spending stands up to the highest levels of scrutiny. Contracting for goods and services is a routine part of business in any government. It enables us to deliver the services and programs that Canadians need and expect, and we have important guardrails in place to maintain the integrity of the process. Government procurement is carried out in accordance with a number of regulations, trade agreements, policies, procedures and guidelines. This is the governing framework when it comes to federal procurement that public servants are expected to follow. Even in a time of crisis, such as what we faced during the global pandemic, basic rules must be followed to ensure that we are getting value for money while meeting the needs of Canadians, as urgent as those needs may be. Clearly, that did not happen in the case of ArriveCAN. The revelations brought forth by the Auditor General and the procurement ombudsman are deeply troubling, to say the least. I think we can all agree with that. We know that there are other investigations under way, which we fully support, so we can get to the bottom of this issue. I can assure the House that any wrongdoing will be addressed. In the meantime, we owe it to Canadians to immediately act upon the recommendations of the Auditor General and the procurement ombudsman, and that is precisely what our government is doing. Public Services and Procurement Canada, or PSPC, as it is commonly known, plays an important role in these matters. When it comes to deciding whether to contract out certain projects, the government takes many factors into consideration. It starts with the proposition that contractors are there to support the good work of our world-class public servants. Where it is determined that there is need for professional services, PSPC then works as the federal government's central purchasing agent with departments to procure those services in an open, fair and transparent fashion. PSPC procures on behalf of other departments and agencies when requirements are beyond their own contracting authority and advises on the steps needed to ensure that money is well spent. With regard to ArriveCAN, we know that it was put in place urgently to track and trace travellers as they crossed the border and limit the spread of COVID-19 within Canada. Public servants acted with extreme urgency on a number of fronts during the early days of the pandemic to keep Canadians safe, and the ArriveCAN app was a critical tool at that time. I want to be clear that the issues with ArriveCAN should not reflect on the public service's overall response to the pandemic. It should be proud of its work to procure vital supplies, as well as the vaccines, that ultimately helped lift Canada out of crisis. However, unlike those other urgent procurements at the time, it is clear now that the way procurement was done in support of the creation and maintenance of the ArriveCAN app was unacceptable. Indeed, there are many questions surrounding the management and integrity of the government's procurement processes for IT services associated with ArriveCAN. For its part, PSPC is already taking action to ensure that lessons learned are turned into concrete action. That means going beyond addressing the specific issues related to any one specific contractor, as important as it is to hold them to account, and fixing the broader issues that have allowed this mismanagement to happen in the first place. In November, PSPC temporarily suspended all delegated authorities, including the authorities of the Canada Border Services Agency, to authorize professional services based on task authorizations. The department also provided direction to its procurement officers to ensure that all task authorizations include a focus on clear tasks and deliverables. We are glad to see that the Auditor General agreed with the actions we have taken. All federal departments must now formally agree to a new set of terms and conditions to obtain access to select professional service methods of supply. PSPC is also updating its guidance to aid departments in procuring effectively and responsibly when using PSPC's procurement instruments under their own authorities. Of course, adhering to procurement policies, directives and guidelines is a shared responsibility across government departments and agencies. In the case of ArriveCAN, it is quite clear that a handful of public servants failed on that front. Our government is committed to fixing the system so that cannot happen again. Let me be clear, when it comes to holding suppliers accountable, PSPC is looking at ways to improve its integrity regime, including with regards to fraud, which will help us take swift action against bad actors for their misconduct. I will note that, on an ongoing basis and as part of the regular business, PSPC proactively seeks to uncover improper conduct and investigates potential wrongdoings in its contracts. Should an investigation reveal wrongdoing, PSPC informs law enforcement for possible criminal investigation. The department also seeks to recover funds when wrongdoing is found. However, members opposite want to push lies. They say that “Well, we're focused on finding the truth and making sure that those responsible are held accountable—

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Context: House Hansard - 286 - Feb/27/24

Mr. Kelly McCauley (Edmonton West, CPC)

Feb/27/24 4:53:51 p.m.
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Madam Speaker, I spend a fair amount of time with that colleague on OGGO on the issue. I appreciate his comments and I take him at his word on his sincerity to address the procurement issues. One of the things that came up from the procurement ombudsman's report is what it calls a bait and switch, where services are proposed but actual services delivered to the government are less than what was in the contract. I wonder if the member can fill us in on what PSPC is doing across the breadth of government to address the bait and switch issues that have been brought forward by the ombudsman.

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Context: House Hansard - 286 - Feb/27/24

Mr. Garnett Genuis (Sherwood Park—Fort Saskatchewan, CPC)

Feb/27/24 6:26:11 p.m.
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Madam Speaker, Canada's common-sense Conservatives will axe the tax, build the homes, fix the budget and stop the crime. This is in contrast to the Liberal record. The Liberals have axed the homes, built the crime, hiked the tax and stopped the budgeting. We are here to discuss the arrive scam scandal and, in particular, the procurement ombudsman's excellent report. Today, the procurement ombudsman was before the public accounts committee, and he confirmed that he is not at all surprised that the RCMP is now investigating the corruption at the heart of the government. In the arrive scam scandal, we see multiple layers of costly criminal corruption in the government's procurement system. The procurement ombudsman found that the government built a system for procurement designed to encourage companies to charge the government more. This is really incredible. If they charged too little, their bids or points might be removed, so the incentive was built right into the system for companies to charge more. The procurement ombudsman found a chronic problem of so-called bait and switch. This is where the bidding company says it is going to have one person do the work, then it switches and has someone else do the work, someone who is potentially substantially less qualified. This builds on what we already know: GC Strategies, the company that got the ArriveCAN contract, was changing and falsifying resumés they submitted to the government, and the government rigged the process. Members of the government sat down with the GC Strategies team to set the terms of the contract, such that GC Strategies would get the deal. This is a two-person company that subcontracts all the actual work, and yet the government sat down with this company and rigged the process so it would get the contracts. It built a system that would favour insiders to ensure GC Strategies got the deal. On top of that, it designed a process that would encourage GC Strategies and others to charge the government more, not less. It is no wonder that spending is out of control and that Canadians are struggling under the pressure of higher taxes and the impact of higher deficits. When the government designs contracting-out processes, it designs systems to try to charge more. The levels of cost, crime and corruption we see in this arrive scam scandal are really incredible. The RCMP is investigating. I asked the Prime Minister today whether the government will co-operate with the RCMP investigation. There was no answer. We had the procurement ombudsman's investigation report and the Auditor General's report, which reveal what happened. However, we now need to identify who the responsible individuals are and why they did it. Why was the process rigged in order to give this deal to this two-person company working out of a basement? Why was it rigged to GC Strategies' advantage? Why did the government create a system designed to charge taxpayers more, not less? These are the key questions that need to be answered by the government, but I will distill it into one simple point. The RCMP is now investigating criminal behaviour as part of the arrive scam scandal. The parliamentary secretary was formerly with the Ontario government and has a great deal of experience dealing with issues of corruption. Could he tell the House, yes or no, whether the government will co-operate with the RCMP's investigation?

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