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I call this meeting to order.
Good morning. Welcome, everybody, to meeting 105 of the House of Commons Standing Committee on Government Operations and Estimates, fondly known of course as the mighty OGGO.
Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, October 17, 2022, the committee is meeting to consider matters related to the ArriveCAN application.
As a reminder to everyone, please do not put earpieces next to the microphones as it causes feedback and potential injury to our valued interpreters.
Welcome back, Mr. MacDonald and Mr. Utano.
I understand we'll be starting with an opening statement from you, Mr. MacDonald. Please go ahead, sir.
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Members of the committee, Canadians have every right to know about ArriveCAN, its costs and its value.
[Translation]
We testified for the first time in November, and we're doing so again today. On November 7, we testified before you, and we told the truth. We didn't give “our” version; we told the truth.
[English]
We provided fulsome answers when asked questions by members. Our testimony and evidence contradicted several previous witnesses. We testified that current and former CBSA senior executives had misled Parliament. Just 10 days after our testimony, the CBSA initiated an investigation of Mr. Utano and me based on a complaint that had been filed a year before, in 2022. The CBSA then expanded hastily to look for anything throughout our entire tenure at the CBSA that could demonstrate a hint of misconduct.
In December 2023, without interviewing us or a single witness, the CBSA prepared a report called the preliminary statement of facts. The reality is, this document is nothing more than a collection of baseless accusations, unsupported by any corroborating evidence, with accusations of wrongdoing supported by cherry-picked emails and calendar entries. It should be called the preliminary statement of falsehoods.
This was not given to us until MPs received it. We were always willing to participate in the CBSA's investigation. However, we didn't even know what we were accused of. We requested disclosure of the Botler complaint; the CBSA refused. In any event, no one was interviewed, and the CBSA told us that we had to give them an answer by January 5.
This is a red herring. The CBSA had already crafted the document by December 18 and 19 and had sent it to our employers.
It is very troubling to me that the CBSA states that Botler, the author of the complaint, demanded a contract in exchange for creating these allegations. Even more, to participate in the investigation, the CBSA says that Botler demanded another contract.
I note the CBSA acknowledged that the Botler complaint was mostly about a breakdown in their own business relationships and was a result of a misunderstanding of procurement practices. This has nothing to do with ArriveCAN.
The entire preliminary statement of falsehoods is designed to paint us in the worst possible light. Every single allegation was false, wrong and taken out of context—every single one. They can all be addressed with supporting evidence. You see, unlike others, we never deleted anything because we didn't have anything to hide. However, the extent to which the emails and calendar entries were manipulated is incredible.
One example that shows how ridiculous the preliminary statement of falsehoods is is based on a single calendar entry for a family dinner. The CBSA concluded that I had a close, personal relationship with a consultant because the contractor shared the same name as my own mother.
Now, only based on the preliminary statement of falsehoods designed to torpedo my career, my credibility, by false claims, my employer has suspended me without pay, without even first attempting to have a discussion with me. I'm named in the press repeatedly, often with the suggestion that I did something wrong. Just two days ago, the himself stood in front of the national media and said that it was clear civil servants committed misconduct and that there are investigations and there will be consequences.
This comes after I simply told the truth and informed this committee that I did not make the selection of GC Strategies. In fact, they were not my recommended choice. I've already provided evidence through my testimony previously.
The Auditor General has said there was a glaring disregard for management principles. I have always adhered to core principles, processes and procedures, including closely tracking and managing the costs of ArriveCAN. In fact, I delivered a detailed costing of $6.3 million to my colleague DGs and my supervisor, Minh Doan, just prior to my departure.
I'll just point out to this committee that the Auditor General's report reflected exactly $6.3 million.
I'm concerned that the complaints come from people who tried to extort contracts from the Government of Canada. I'm very concerned that colleagues of mine have been coerced to take part in this investigation against their will. I'm very concerned that thousands of emails have been deleted to hide the truth. The CBSA is delaying access to information requests that I need in order to defend myself, and now the has pronounced guilt to the entire country.
[Translation]
I'm prepared to answer all the committee's questions, and I'll uphold the principles of truth and transparency.
[English]
However, it is worrying to me that parliamentary privilege has not protected us as we are now facing reprisals.
For the record, I have served in the civil service for 23 years and until now my career stood unblemished. However, I am suspended without pay based on untested, unproven and false allegations.
We have had to turn to the court to ensure fairness. We testify here looking for the same. The journey ahead may be challenging, but I'm committed to facing it with unwavering honesty and integrity.
Thank you for your time and attention.
Good morning, Mr. Chair and members of this committee.
We appeared before you on November 7, 2023, and told the truth. We have co-operated and will continue to co-operate with Parliament and speak truthfully.
I echo everything Mr. MacDonald said in his opening statement but will add the following.
I was the executive director who became the acting director general of the border technologies innovation directorate in May 2021 after Mr. MacDonald left for Health Canada.
We were responsible for the execution and technical delivery of the ArriveCAN application. What we were not responsible for is signing contracts, as we did not have contracting authority. We were not responsible for approving budgets for ArriveCAN. We were not responsible for selecting GC Strategies to work on ArriveCAN. This was Minh Doan's and the president's decision. We were not responsible for, nor did we have the mandate for, many of the flaws the OAG had enumerated in their report.
I have worked in public safety my entire career, for over 20 years, with an unblemished record. I started at the RCMP working on highly sensitive files with top secret security clearance. Anyone who knows me knows I'm a straight shooter. I take offence to what the CBSA has done to us after all we did was speak the truth.
There have been absurd suggestions of bribery. Have a look at this knapsack. Is this bribery? Does this committee really think I can be bribed for a $17 knapsack? Every single person who worked on ArriveCAN was offered this souvenir. This bag was disclosed to the values and ethics office of the CBSA, as well as our vice-president's office.
CBSA is punishing us because we told the truth, because we told this committee they have been misled by senior officials from the CBSA. I question and highlight why the CBSA, Health Canada and the Canada Revenue Agency are working in concert to punish us. To note, both Health Canada and the CRA did not want to participate in the CBSA investigation, yet they supported suspending us anyway.
I'm now questioning even more why the has publicly pronounced guilt and has said there will be consequences, when after more than a year, the RCMP has not investigated. I'm questioning the investigation, as there is clear evidence of bias and the report is tainted and flawed.
The very starting point is problematic. The person who conducted this investigation and crafted the report was himself involved in the original vetting process of Botler AI in late 2020. Who is Botler AI? They're the ones who wrote to the CBSA back in October 2022 saying that if you're concerned about misconduct, look no further; Botler has an answer. Botler prepared a report. They specifically said they would only share it in exchange for a contract.
Furthermore, I find it interesting that in October 2023, they told this same committee that the CBSA was at risk of extortion. A month later, as the CBSA has indicated, Botler AI would participate in an interview only if they were given a contract for their services. Is that extortion, really?
I am left to question what is really happening here. There are people charged with criminal offences who are suspended with pay. We were suspended without pay based on unsubstantiated allegations and while on medical leave. In the employment world, this is just shy of capital punishment.
All we did was expose the fact that parliamentarians have been misled. We didn't just say so; we provided evidence. On that note, just like the bag, we have evidence that every one of the allegations raised in the report is false, misleading or taken out of context. Had the CBSA conducted the investigation leading to the creation of these reports professionally and honestly, they would have insisted on interviewing witnesses, especially us, and looking at the evidence. Instead, they crafted a document that was designed to show us in the worst possible light, and they were successful. As a result of these reports, our security clearances have been pulled and we are suspended without pay.
I understand that some members are concerned that we spoke to members of this committee when we were contacted. However, understand that we were trying to defend ourselves against this CBSA and our home departments, all three of which have the resources of the federal government targeting us.
We are not even drawing a salary. Of course, we spoke to a committee member when they reached out, as we would have to any committee member who had shown an interest. We've also had to turn to the court because the CBSA will not co-operate and disclose key information required to defend ourselves.
The CBSA acted unfairly, continues to act in bad faith and created a fabrication to distance itself from any accountability.
I am happy to take any of your questions.
In closing, isn't it ironic that the people who are pointing fingers are the ones with the dirtiest hands?
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That's a great question. I hope I can enlighten the committee a bit.
We never had the authority to put in contracts. We never had the authority to put the TAs in place. We had what was called a “technical” authority. We could sign off on the scope of the task.
I also want to mention that we are not the finance group, so we don't have responsibility for invoicing, reconciliation, the overall financial system or the system of record. That would all be within the CFO group within the procurement team and within the finance branch. We were responsible for the technical delivery and execution.
We did have managers who oversaw the consultants who worked on ArriveCAN. They would have been responsible for signing off on the time sheets of the consultants. I believe they were all done in order. What would happen after that is the time sheets would go to the vendor. The vendor would reconcile them and submit an invoice. Once all the paperwork was submitted and it was in the proper format, I was asked to sign. Then it would go to finance to sign off. They would do the last verification to make sure that all of the tasks and all of the procedures were followed in order to sign off.
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Thanks for the question.
Minh Doan once said, at the early onset of the pandemic, that a rising tide floats all boats. At the onset of the pandemic, we were asked to digitize a form. The budget for that was about $50,000. When it went to building a mobile app and releasing it, the initial budget, from a prototype perspective, was about $400,000, as we've testified to previously and showed evidence of.
However, there was continuous change and everybody started injecting their requirements. Not only were we dealing with the Public Health Agency, but we were dealing with the rest of the IT branch, with the travellers branch and the commercial branch.
From my vantage point, there was never a budget allocated. However, I will point out that there's been talk about an ATIP, and there are 780 pages in it. I've gone through it. That was known to the CFOs of PHAC, of IRCC and of CBSA. They were able to recover $12.5 million from IRCC and PHAC the second year after I was gone. They actually put in a budget request for $25 million the third year.
That's not far off from the $60 million, when you add $6.3 million plus $25 million plus $25 million. The residual, I would suggest, is probably just other people putting their hands in the purse.
As an example—it was after my time—Service Canada asked for about $8 million for a call centre. I didn't validate those costs, but I would imagine they already have a call centre, since they're Service Canada.
The IT operations team was asking for new resources, but they didn't take on the operation. There were project managers, I'm sure, working against ArriveCAN and being costed against it. Obviously, the Auditor General found a glaring hole with project management.
Overall, the only thing I can say is that these two guys weren't responsible for the $60-million budget or the oversight of it. I'm kind of incensed at the fact that the rest of the CBSA has tried to insulate themselves from their own accountabilities.
If I understand correctly, people are just trying to protect the job they have now.
In that same letter, you advised us of the aggressive tactics allegedly used against Mr. Utano.
Why are you the one telling us about those aggressive tactics, not Mr. Utano?
Mr. MacDonald, I'd really like you to keep your earpiece in when I'm talking, since it can get technical at times. It's a matter of respect. Thank you.
Why were you the one to advise us or who decided to tip us off about the aggressive tactics being used against Mr. Utano?
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To set the record straight, we had a few exchanges between the time I was notified of the investigation being opened after my testimony and January 5, which was the last one. Those exchanges happened with my counsel. We were asking for information and disclosure.
The CBSA refused to disclose any information at all. On January 5 we got the final warning, where they said if we didn't do it, they were going to close the investigation. Part of the reason we went to the courts was to make sure that the CBSA couldn't close the investigation.
As we found out through the disclosure of the document—which only happened because there was a production order from this committee—the CBSA had to share it with us. Otherwise, they weren't planning to share it with us at all. We had one page that had six line items on it, and it said specifically that the allegations were from Botler from 2002, but they opened up the investigation, I believe, 10 days to the day after I testified here at OGGO.
First, we never had the authority to make the decision. We presented options. If we had had the authority to make the decision, why would we have presented options in the first place?
Second, we presented evidence to this committee and to the Auditor General on who made the decision.
Third, what she was referring to, I believe, was a requisition. A requisition is step one of six in contracting, but that starts only after a decision is rendered.
I'm going to repeat this. Once the decision was made by the VP, Minh Doan, and the president to move forward with GC Strategies, we were then told to execute and move forward.
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That's a good question.
I'll start off, and if he wants, he can jump in after.
I have a couple of things, just to put some more context to it.
Ten days is the timeline that would be put on the street, if you will, for vendors to participate. However, leading up to that, there's the development time to curate a proposal. That takes weeks if not months to do.
Second, when we worked with PSPC, we worked in conjunction with them and our internal controllership, with a targeted goal to move forward with an RFP as quickly as possible.
The third thing is that we were given direction from our superiors that we would not be able to stop. We didn't have the luxury of pausing during the pandemic, so we followed that direction and we were working with the experts in procurement and contracting. We did the best we could with the tools we had, but we never had the authority to just make unilateral contracting decisions. I just want to reiterate that.
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Maybe I'll start with that.
GC Strategies met with the commercial branch and travellers branch—I wasn't part of it—and they did what they call a “technical bake-off”. There were two companies showcasing their technology. I believe the commercial branch chose GC Strategies and wrote a justification for a national security exemption. That justification went to the CFO, Jonathan Moor, who then wrote a letter to PSPC seeking approval for the national security exemption.
I provided this evidence to all committee members.
That letter actually states that they had a preferred vendor who had done work with Transport Canada, hence the commercial ties.
We took that on because we were the IT team, but the genesis of the second contract was additional scope to tie into ArriveCAN that came from the business line.
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I was surprised that the AG didn't have an element of that in her report.
I think all factors regarding the value of the app need to be considered. As I've said, GC Strategies brought in some really good consultants, and they did a good job of building the app while I was there.
The fact of the matter is, she did express that it was taking more than the quarantine time to get provinces the information. There was also a cost to doing that.
From my vantage point and having a background in understanding how to count, I would say there was definitely a cost avoidance. I can't say there was a cost savings, but had they stayed on paper, it certainly would have cost more than ArriveCAN did.
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I can jump in with a brief answer.
There are a whole host of documents, and I'm not sure if the OAG was provided with them. OICs triggered every single technical change. They reflected orders in council that were ordered and then brought down.
Moreover—I don't know if it was presented to the OAG—from a technical perspective, we used an online tool that would track all the different changes. Also, we eventually had a project manager put in who tracked every single version and the origins, if you will, or the genesis of each version and the changes.
I apologize that I don't know what was presented to the Office of the Auditor General, but I can assure you that there is documentation there.
Good afternoon, gentlemen. Thank you for your attendance.
I want to use my opening round with both of you to put a fine point on this issue.
This discussion has to end, and it needs to end today, as to who's responsible for the selection of GC Strategies. Canadians want to know. Canadians are rightly angry that this two-person firm working out of their basement, doing no IT work, has collected almost $20 million in taxpayer funds. I can understand why the Justin government wants to shield themselves from any responsibility.
I know the Auditor General was unable to precisely identify which individuals. She made a suggestion, Mr. Utano, that perhaps you should accept responsibility for it. Her words were that you signed the requisition on behalf of the agency, which “amounts to the exercise of delegated authority and carries with it responsibility and accountability”, but prior to that particular statement, did you not meet with the Auditor General's team?
Good morning, gentlemen. Welcome back to our committee.
I'm going to pick up where my colleague MP Bains left off.
I felt that the answers that we got from both of you gentlemen around the commitment to get us some timelines may have left the door open.
I would like to specifically ask you both to provide to the committee—within one week, as per our procedures in the past—the timeline in which you received the initial statement of fact, the timeline in which it was given to your legal people and the timeline in which Mr. Brock reached out to you or to legal people, as well as the scope of the document that was given to Mr. Brock.
We know that the clerk received the document on February 9, and it was roughly about 10 days afterward that we were in a position to be able to receive that document.
Shortly after the appearance of the CBSA investigator and within hours after that testimony, there was a letter from a legal representative that said to ignore everything and to please not communicate any contents to the public in a public way. It seems that today we have completely disregarded all of those.
Can you commit, both of you—and I want a yes-or-no answer—that you will provide all those timelines within one week to the committee?
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First of all, I want to say thank you for respecting that privacy. It's meaningful to both of us.
It appears to us that somebody who knew us basically just went into our emails after consultations occurred and just started collecting things and putting things together with a narrative and a storyline that indicates wrongdoing.
Not only is the entire document couched in words that would make you believe something was wrong, but there's also “could have” or “might have”. These are not facts at all.
I just want to remind this committee that when Mr. Lafleur—who is not the lead investigator, but the executive director of the team—came here, he admitted that these were allegations. Even Ms. O'Gorman referred to these being at a point in time, so the question is that if this is a point-in-time document, why did they decide to release it at that time to our bosses and have us suspended with pay? Why would Erin O'Gorman make a phone call to our bosses? That's not a formal thing to do when you're dealing with such a serious subject.
How come there's no writing? How come there's no email or documentation that shows what she talked about with our bosses?
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That's fair enough. Thank you.
I just want to understand. The follow-up question will get into the details, but I've made a commitment that I'm not going to talk about it to ensure the integrity of this process.
What are your thoughts about the AG report?
I am asking because the AG is telling us that there are a lot of documents missing. You specifically told us that in your role as a technical person, you sign a lot of documents, such as technical specs, time sheets and all of that. The AG seems to not be able to find that, yet you seem to be in a position to be able to say that this application could not have cost $80,000 and that it's $6.3 million. I thank you for at least bringing into perspective a number we could ground ourselves around in the development of this application.
With 15 seconds to go, can you explain to me what documents you can or cannot sign and what you have and have not signed?
Mr. MacDonald and Mr. Utano, I want to drill down on the mechanics of the internal investigation.
I assume that you're familiar with Mr. Lafleur's testimony here on February 5. He's conducting the internal investigation.
He confirmed in his response to my questions that he is not an independent investigator and that he's not able to act independently. He's subject to the internal chain of command at the CBSA. I emphasized at the time that I thought this was a deeply flawed process. Determinations of accountability require a proper external investigation in which powerful people, CBSA leadership and politicians, can be held accountable.
The RCMP is investigating, but we also need to identify wrongdoing that falls short of criminal behaviour.
Why do you think the government is pursuing this internal investigation instead of an independent investigation into who is responsible?
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Thank you, Mr. Chair and witnesses.
I have a preamble here.
Based upon Mr. Utano's and Mr. MacDonald's opening statements, I don't believe that anyone's been charged here. I don't believe that anything has been laid against anyone. Neither the nor any other elected officials are stating that. What they're stating is that if anyone is held accountable, they should then be appropriately dealt with. I think all of us have recognized that, and that's why we're going through this process.
I do appreciate Mr. Utano's recognizing that ArriveCAN would have cost more had it been done another way, but there is value in the intellectual property of the work that has been done. I think that's also critical to reaffirm.
Mr. MacDonald, I appreciate your recognizing that you've known Mr. Firth and first met him in Stephen Harper's days in 2010.
Now I'm trying to understand the confusion between this preliminary statement of facts that has come out. It's not the final result; it's just a preliminary indication of what you did as part of the investigation.
As we go through the investigation, there is a next step. The next step, of course, is to provide interviews and to reach out to you and Mr. Utano. I think you've already responded via your lawyers as to coming forward, having an interview and going forward in this.
Can you please confirm that you have actually held back on providing interviews with the investigator?
We have a situation in which an investigation is under review. You have concerns about sharing your evidence to ensure that the truth is made and that we get to the bottom of it, and we all agree with that. I believe the investigation is also looking, for that matter, and the RCMP is making its investigations. I don't know to what extent that's happened, because that's part of the integrity of the investigation.
Certainly when we're dealing with this now in public and individuals are having conversations with you on the side and we're here before this committee, we're prejudicing the possibility of a proper outcome, in my opinion.
Notwithstanding, I don't want to discuss the actual details of the preliminary statement of facts, because that's where we're trying to protect you as well, in that circumstance.
You mentioned that one of the members.... Well, he's not a full-time member of the committee; he's part time. He comes in and he's reached out to you. When did that first happen? When were you first approached by a committee member?
Despite the unsuccessful efforts of my Liberal colleagues today and throughout this week to try to spin the narrative that Canadians received really good value for the $60 million wasted on this “ArriveScam”, and we often hear that it saved lives, there's really no empirical evidence to suggest that one life was actually saved. However, the Liberals continue with this narrative, and I think Canadians would actually prefer the independent voice of the Auditor General on the issue of value, and not the voice of biased Liberal members.
I'm going to put out a phrase to you from her report:
The Canada Border Services Agency's disregard for policies, controls, and transparency in the contracting process restricted opportunities for competition and undermined value for money.
I emphasize “value for money”, so the focus that I have, for the amount of time I have left, is to really drill down on the guess that the Auditor General made with respect to what this fiasco cost Canadians. It's almost $60 million, but that doesn't include the probably millions of dollars that were paid to the federal public service.
Can you offer any suggestion as to how many millions of dollars, on top of that $60 million, were actually paid to the professional federal public service?
Thank you to the witnesses for your testimony.
The challenge for our committee, of course, from the very beginning, has been to separate what is fact from what is fiction. My grandma use to say, “Eat the fish, spit the bones.” We're trying to separate what are the fish and what are the bones.
I wanted to ask you this. Our Conservative colleagues continue to repeat that this was an $80,000 app that ballooned to $60 million. Is this true?
In fact, in my prior testimony, when I told you that Minh put Deloitte in the penalty box, the data office was trying to go with Deloitte, and Minh told them the exact same thing, so half of those costs moved over to our side, because it was all kind of orientated around cloud and storage and whatnot. We bore a lot of those costs.
I mean, to think about the data pipelines, the security and the ability to do the back-end infrastructure, what we had to do at one point was validate that people had actually crossed the border. If you submitted through ArriveCAN, the data was going to the province and the province was checking on people, but if they never got on the plane, they were wasting their time. We had to do verification checks to make sure that everybody who said they were coming across actually made it across, and then we would send that data over.
Are we to understand that the tens of thousands of pages provided to the committee were “cleaned up”, like all the documents provided to the Auditor General, so as to protect others by making you the scapegoats?
We learned that a majority of the complaints laid before the Information Commissioner concerned CBSA, and we also know that, in the past, whistle-blowers have been punished for speaking out against mismanagement at CBSA.
Do you believe that CBSA, given its practices, particularly with regard to contracting and passport management, should be placed under third-party management?
I'm going to ask my question from start to finish to ensure that you understand it properly, and I'll do it slowly.
Are we to understand that the tens of thousands of pages provided to the committee, as well as to the Auditor General were “cleaned up” so as to protect others by making you the scapegoats?
Through the Information Commissioner, we learned that the majority of access to information complaints concerned CBSA. Furthermore, we know that whistle-blowers were subject to reprisals after flagging passport mismanagement.
For all those reasons, do you believe that CBSA should be placed under third-party management?
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Some of these are not easy to answer quickly, sir.
We're not questioning the AG's findings; we're questioning the inputs. If the AG wasn't given the proper inputs, then she wouldn't be able to have the proper outputs, and I think everybody understands that. We're not questioning her or her office at all. I want to be very clear about that.
If the RCMP has something to investigate, both Mr. Utano and I feel that they should be free to conduct their investigation.
What we feel very strongly about is that the CBSA is trying to cover something up. They've doubled down and created this false preliminary statement, just to basically destroy our credibility. They shared it with our employers when it clearly wasn't ready. There are clearly facts within it that are just so false and incorrect that it's unbelievable. That's what we have a problem with. That's why we went to the courts, Mr. Bachrach.
Just to be clear, we're not asking for the investigation to go away; we're asking for an independent investigation because we don't believe the CBSA is capable of doing one.
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Maybe I can opine in here.
With respect to skill sets and costs, the public service and public servants are not Lego pieces that can be interchangeably used in the same way.
For example, we did reach out to CDS, which is the Canadian Digital Service, looking to leverage that in a program whereby we would bring in expertise. The annual cost would have been $400,000 per person, plus the EBPs, the employee benefits.
These skill sets are not interchangeable or—
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If we have the time, I told you guys about Minh Doan threatening me, and nobody did anything.
Kelly Belanger was nowhere to be found. The OAG keeps on saying that there was a lack of project management. Her husband was convicted of sexually assaulting young girls and he got convicted and went to jail, and she wasn't around. I had been asked, and Mr. Utano had been asked, to help her out while she was gone for family problems.
Erin O'Gorman didn't do anything when she found out that I was threatened. Mr. Doan had threatened somebody else and been docked pay, so she knew there was a pattern of this behaviour. When we talk about why there would be a reason or a separation, I never had any problems when I was at the CBSA. I got asked to go to Health Canada because of my record at the CBSA and my record previous to it.
Therefore, I don't know. Neither does Mr. Utano, who had a spotless record. We're just trying to get the right information. We're trying to have transparency and now, after everything that's happened, we want independence from what the CBSA has done.
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I would characterize it not as truthful at all and as cherry-picked information from Botler, who were apparently recording everything that everybody does and then decided to put in misconduct reports two years after their failed business dealings.
Number one, I don't think the member was here when I first testified, but I did explain and I went through a whole critical path of timelines. I held up a big piece of paper and I explained that when Botler says that I tried to pressure them, there was no chance that that could be the case because, one, I wasn't the client, and two, the decision to go ahead with Botler didn't happen for almost another year after that.
Number two, in terms of Mr. Firth knowing me for my entire career, it's false. He clarified that he knew me his entire career. I've already explained the timelines and dates of when I knew Mr. Firth, and we didn't have a close personal relationship whatsoever. I met him three times out of an office, and half of that was during a pandemic when you couldn't go into an office in the first place.
In terms of singling me out—because I'm trying to answer your question very directly—I don't know why Mr. Firth would do that. I certainly didn't ask him to do that. I wasn't part of that conversation and I wasn't videotaped or recorded or whatever it is that Botler does as part of that, and I won't speculate, but I never asked Mr. Firth to do anything. It's unfortunate. I didn't like it at all and I think the reporter's aware that I didn't appreciate the report, but it happened and I'm dealing with it as best I can.
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If we start with the Botler allegations, I believe PSPC reviewed those. I believe they did a legal assessment and told Botler that this was a private sector matter. I believe CBSA, through Botler's own testimony, told Botler the same thing. I hope that clears up that point.
With respect to the Auditor General and the procurement ombud's report, with respect to my time and tenure at the CBSA, I don't think I was named as having done anything wrong. I don't think any public servants were named as doing anything wrong by the procurement ombud. I don't know of any wrongdoing. I certainly did not witness any and I wouldn't have stood for it had I seen it.
Frankly, maybe I'll pass it to Mr. Utano for the other two years that ArriveCAN was there. From what I understand and the reviews that were done, there were some questions between contract 1 and contract 2. I've clearly stated that we were responsible for contract 1. The justification for contract 2 was written by the business and was signed off by the CFO. It was sent over to PSPC and they signed off on it, and they indicated that they already had a contractor in mind for that work.
For contract 3, it would make no sense to go with a different vendor—as I explained, it doesn't make sense to hire a different plumber to do more work in your bathroom than you originally engaged for—but PSPC did insist on a new contract.
I'll leave it at that. That was the only thing I was there for.
Mr. Utano, go ahead, please.
I did not witness any sort of misconduct.
I want to make a comment on the Botler issue.
As I said in my opening statement, what's concerning to me is the request for contract services in exchange for a misconduct report and the request for a contract in exchange for participating in an investigation. For me, that's what raises a lot of red flags.
As far as authorities go, I'll say again that we were not the contracting authority; we were responsible for the technical delivery and technical authorities. We also put in place systems and checks and balances.
I want to reiterate something, because I heard a comment about a shadow procurement. Let me be very clear: There was no such thing. There was no shadow procurement. It was impossible to even trade that. You need six people to turn the key at the same time for any sort of contract to be let. We had an internal team that was taking in requests and we had CBSA procurement and PSPC was the overall government authority. We also had.... I don't have evidence for you, but if you.... This was omitted, and this is what's concerning to me—the omissions of data and papers. That is what I'm questioning. You'll see that there were monthly and weekly meetings for procurement—
Colleagues, as you are aware, we've been letting everyone run a bit long, and that's partly because we have a long meeting today and I sense that there are a lot of important questions.
We're down to our final two rounds, so I have to keep everyone down to their exact time in order to be done on time. I want everyone to please be aware of that.
Mr. Genuis is talking about how that will be after him, but no—please be cognizant of your time, because we need to stick to it.
Mr. Genuis, go ahead, please.
:
The reason I say that is that after Minh Doan threatened me, I reported his threat to my supervisor, who called over to Ted Gallivan, the executive vice-president at the CBSA. I don't know what their discussion entailed; I only know that the feedback that I heard was that it seemed likely, because of behaviours of Minh Doan, that Minh Doan would be going on sick leave within a week and a half. This was prior to OGGO happening.
Mr. Doan went on sick leave, and I got a text message from Kelly Belanger saying that Minh was in the hospital having his heart checked and that he wanted to say thank you for the message I sent, the one that got me in so much trouble with the reporter because I had sent him notes on what he should say at OGGO.
Then, miraculously, he comes back to work, moves over to Treasury Board and gets promoted to be chief technology officer. That certainly couldn't be a less stressful job than what he was in before for someone who had heart problems.
Then we have OGGO coming up again, and I'm under the understanding that Mr. Doan is now on medical leave again and can't participate.
I can tell you that I'm not going to disclose my medical issues, but I have a doctor's note for seven months from my family doctor, who's known me since I was eight months old, and I'm still coming here because it's a matter of integrity and it's a matter of importance for me, my children, my wife and my family to know that I'll stick up for myself and that I'll tell the truth.
I know that Mr. Jowhari is familiar with management consulting and IT. I welcome any member here to look at the two options that we have provided as evidence.
Nowhere in the Deloitte option does it talk about Deloitte's cloud. Nowhere in the Deloitte option does it talk about a completely outsourced option.
On the other option, where Minh Doan told this committee that there were no logos or no anything, there was a logo. It was Distill Mobile, which was subcontracted through GC Strategies.
I maintain that I was told—and so was the former chief data officer—that Deloitte was out of bounds and that they were in the penalty box because the CARM project was in the red. That's the truth, and it's also verifiable. I've already given this committee the names of the people who can verify it.
:
Thanks very much, Mr. Chair.
I want to circle back to what actually brought us to today's meeting and go back to the fact that the subject of our study is ArriveCAN, notwithstanding your desire or your wish that Canadians would understand the challenges and the great work that was done on ArriveCAN.
I think that what is incredibly egregious to Canadians is the awarding of a contract to a two-person firm working out of their basement that had no IT experience and did no IT work. In fact, both the Auditor General and the procurement ombudsman raised serious concerns about this contract to GC Strategies. The procurement ombudsman stated that the requirements for that third contract were overly restrictive, such that only GC Strategies could win the contract, and the Auditor General in fact revealed that they were at the table when the requirements were being created.
I know that in your testimony you've said that you're a technical authority and not contracting authorities, and that what you do is sign for scope. I need to understand that, because while you stated on November 7 that you were never in a position to put contracts in place and make contracting decisions, you did sign off on funding and the scope.
My question to you is this: While you didn't have the ability to execute, did you have the ability to influence the scope and the request for proposals, in that you were defining what was needed? Was either of you involved in the discussions for the development of the requirements for this final contract with GC Strategies?
:
Initially, the CFO was at the table. What we were not discussing was dollars and cents at every meeting, but every week we would be in front of deputies, in front of PHAC, and showing them screens about what was to be delivered. Most VPs were at the table with us.
When we needed funding to be able to put something in place, the CFO's organization would be the one to approve it and endorse it. Then it would be the CFO's procurement organization under, at the time, a place called “comptrollership”, that would do the reviews of all of the contracting and see what was going on.
At the EC table, which is the president and the VPs, there are, at a minimum, quarterly reviews of expenditures, forecasts and everything that's going on. It would be more appropriate to ask the CFO—and his team, frankly, since he has a large team that supports him—what was going on and where they were.
Certainly they were aware that we were putting contracts in place. He was the one who sent the NSC over to PSPC. Certainly, as we were expending funds, we continued the financial cycle. I reported when I left. I knew it was $6.3 million, because I was tracking all my expenditures. Those were all going to the CFO's organization to be rolled up in aggregate as part of the agency's overall financial position.
Let me read what I have been able to secure in the last hour. I quote: “Prime Minister Justin Trudeau said Tuesday it's "obvious" contracting rules weren't followed during the development of the controversial ArriveCan app.” The called the application controversial and said the rules were not followed. That is something directly out of the AG's report, and in no way does it implicate you or Mr. Utano.
“Trudeau said that while the app was developed at the beginning of the COVID-19 pandemic, such projects still need to follow rules even in difficult times.” This is exactly following what the AG report also highlighted and in no way implicates you or Mr. MacDonald.
The article continued, “He said investigations are ongoing and there will be consequences in cases of public servants failing to abide by the rules.”
He did not specifically talk about any investigation. We all know and are aware of one that has to do with the CBSA, and the other one we have heard about is from the RCMP. He is saying any public servant failing to abide by that rule will be punished. Nowhere does it mention you.
What led you to believe that any of those three statements, which are basically available on media, implicates you or Mr. MacDonald in any way?
:
First of all, the never referred to two public servants; you talked about public servants, and there are many public servants. I think that is a little bit of a stretch.
Let's go back to the evaluation.
Thank you very much for tracking the cost for the year that you were there. At least we have a base to start with. The Auditor General also said that this application could have cost us as much as about $60 million. We also heard that the processing of paper applications or paper processing would have cost around $3. At 40 million transactions at $3 apiece, it's about $120 million.
If it's a $60-million application, that's $180 million just in cost avoidance, not valuation. Even if this application was topped at $60 million, we'd avoid potentially twice or three times the cost that the government would have incurred. If you look at it from a cost avoidance point of view, there was some value.
However, I'll ask you a question as a technical person. If there was an e-commerce application that had 18 million users and had anywhere from 40 to 60 million transactions within two years and helped facilitate transaction of goods in the billions of dollars, if we wanted to raise funds for that application and market it, what would it be valued at?
In her report, the Auditor General states that the CBSA's “documentation, financial records, and controls were so poor that we were unable to determine the precise cost of the ArriveCAN application.”
She further stated and opined that in her multiple decades of service to this country in the role of the AG, as well as in her audit work, she has never seen worse record-keeping in her life. That was attributable to the CBSA.
Were the two of you responsible for poor record-keeping, yes or no?
:
Thank you very much, Chair.
I want to thank the witnesses for their testimony.
All of the different things that we're hearing are very concerning. I'm particularly concerned about the problems with all of the different allegations as part of this issue. I think we need to ensure there's a proper and thorough investigation.
With that in mind, Chair, I would like to move a motion in relation to a proper investigation.
I move:
That the committee report to the House its ask that the Public Sector Integrity Commissioner of Canada investigate all the allegations of wrongdoing related to ArriveCAN, and report to the House by October 1, 2024.
Chair, this would allow for the important independent investigation we need to have from the Public Sector Integrity Commissioner of Canada to get to the bottom of some of these allegations.
This would be an investigation by an officer of Parliament that is not at risk of interference and is not subject to the internal chain of command. I hope that there would be the support of this committee for this very simple proposal to ask the Public Sector Integrity Commissioner of Canada to investigate these allegations.
Thank you.
Perhaps I can ask, while we wait to receive this motion—it's at least a much shorter one that we can really keep a focus on—if I am right in understanding that we are now asking a fourth independent group to launch an investigation.
The AG has completed her investigation. It seems there was a motion for us to go back and expand or launch another investigation much broader than that; I don't know where that's gone. We know that there's an internal CBSA investigation going on. Through media and through others [Technical difficulty—Editor] led to believe that [Technical difficulty—Editor] and who the participants are. Now we are asking for a fourth investigation to be launched.
Wouldn't it be more logical for us to wait for the outcome of the two investigations—at least the one that we know of and the other one that we've heard is going on—and get the result of them to be able to assess whether a fourth investigation is required? I don't know what the basis of such a request would be without the outcome of at least one known investigation and another one that's alleged to be going on.
Are we going to now task another group with getting to the bottom of this, which we do welcome, and then extend the number of meetings we'll have for ArriveCAN from unknown to extremely unknown, and from somewhat planned, we believe, to completely unplanned going forward? Why do we need another investigation when the outcome is not out yet from the ones that are ongoing or are believed to be ongoing?
At this point, without that, I'm not supporting this motion.
I'm sorry to see that this may not be as simple as I thought it would be.
Let me state what I think all members know: There are different officers of Parliament and different organizations with very different mandates. Obviously, we have the RCMP looking into allegations of criminal activity. I suspect we will hear from them at some point. There's the Auditor General's report. The Auditor General is acting as an auditor, with specific scope to look at a set of things related to money and value for money, processes, etc. We have the procurement ombudsman's report, which has a distinct mandate related to procurement.
The role of the Public Sector Integrity Commissioner, as an officer of Parliament, is to investigate wrongdoing and to investigate clearly allegations of problems in integrity in relation to people in government. We have allegations of reprisals against public servants following their committee testimony of the destruction of documents and of extortion. There are many serious allegations flying back and forth, with senior public servants accusing each other of lying to parliamentary committees. These are very distinct issues related to integrity within government. I think that the Public Sector Integrity Commissioner has the right mandate to investigate those specific issues and, crucially, has the advantage of independence.
We oppose efforts by some to bury this matter or to limit the scope of the investigations. There was a clear agenda, I think, on the part of the government to want to have this limited to an internal investigation that ultimately they can control. When we have an officer of Parliament responsible for making investigations into public sector integrity issues, I think that is a clear and appropriate way of getting to the bottom of this situation.
Look, if we wait until other reports are complete before this process starting itself at all, then we are just continually pushing off actually getting to the truth. I think it is right and responsible for this committee to ask for the support of the Public Sector Integrity Commissioner as an independent actor, as someone with credibility and as someone who will look at issues distinctly different from those in the other reports.
Again, I hope this motion will have the support of colleagues. It's a simple, straightforward motion. There's no extraneous commentary in the motion at all. I think it's something that all members should be able to support to allow proper investigations to take place.
Further to my colleague's comments—and I agree absolutely with his content—I'm rather disappointed in Mr. Jowhari for conflating a number of investigations when we're trying to establish some independence with respect to those investigations.
We've heard about the internal investigation launched by the CBSA. We've heard evidence directly from the investigator that he is in no way truly independent. We've heard commentary from Mr. Utano and Mr. MacDonald that they have rephrased the PSF to a “preliminary statement of falsehood” and not facts.
All committee members should remember my opening line of questions to Mr. Lafleur. I challenged him on the basis that he is establishing conclusions on a preliminary basis. Perhaps he should have rebranded the report as allegations and not facts. There's a big difference between a proven fact and an allegation. He's clearly established that he reports to his supervisor, who ultimately reports to the deputy minister, so there's absolutely no independence.
What's more troubling is that the former clerk of the Privy Council, Michael Wernick, with his decades of public service experience, said that he has never in his lifetime ever heard of mistreatment like that given to these two public servants, who were on a medical leave for some real, legitimate issues related to threats and stress. We heard from Mr. MacDonald back in November about how he was threatened by complete strangers and was essentially ostracized by 's government and its officials, which is appalling on many levels.
We need to have someone who is truly independent report to the House, taking a look at all the circumstances as to why the government and the senior officials at the CBSA have centred out these two individuals to suspend them without pay while on medical leave. According to Michael Wernick, there's no precedent for that type of administrative manoeuvre. With the evidence that we have heard at this committee, it's abundantly clear that they are being scapegoated, that there are a number of people—senior members of the CBSA, and now with potential ties to ministers.... We heard earlier this week that all the DMs were reporting to their minister throughout the implementation of the ArriveCAN app and also to the Clerk of the Privy Council, which is the ministry of the . Indeed, there is political interference and manipulation in this process that needs to be fully vetted.
If my colleague Mr. Jowhari truly lived up to the mantra that pronounced during the 2015 election—that this would be an open government, a transparent government and an accountable government—and truly believed in those values, he would seek a completely independent investigation.
I will definitely be supporting this motion.
Thank you.
:
Thank you very much, Mr. Chair.
I understand my colleague Mr. Jowhari's questions about the number of investigations that are currently under way.
That said, this investigation, however, is not about the ArriveCAN app. Its goal is to find out whether reprisals were taken against public servants in the course of their work, following their appearance before this committee. If so, we want to know what reprisals were taken.
That's pretty reasonable. It's normal. We have just passed a piece of legislation that protects whistle-blowers, so we need to walk the talk. If you are dealing with whistle-blowers, you have to protect them.
In my humble opinion, this investigation is very necessary to ensure that the people who need to be protected are protected and that they do not get threatened in any way, shape or form, like Mr. Sabourin did.
He did ask for help in a number of places, including from his member of Parliament. The only people who responded were Jean-Denis Garon and Julie Vignola.
So I invite you to think about that to avoid being on the wrong side of history.
We want to get to the truth and get a full picture of that truth.
Had we had the preamble and reasoning for launching another investigation, explaining how the scope of this investigation varies from the others and how it complements them, and had it come without the typical soapbox-style blaming of the government around transparency and all of those partisan things, it would have been a much better start. Once again, had we had this motion prepared and sent to us, and had we had an opportunity to be able to talk about it a little bit better....
Given that the scope of this investigation now seems clearly different, worthy and complementary to the others, I'd like to say that we fully support the idea of the Public Sector Integrity Commissioner investigating this matter. Probably it would be a good idea for the committee, through the chair, to send a letter to the PSIC asking whether they're investigating, and if they are, if there is a timeline on that.
I will not dignify the comments that my other colleague Mr. Brock has made about our government not being transparent or accountable, dating back to the platform in 2015 when the talked about an open government. What Mr. Brock forgot is that we also said that we will hold a high level of integrity. This is where we are trying to find that balance between integrity and openness, etc. I strongly suggest that we come off the soapbox, start focusing on getting to the bottom of this and stop the rhetoric.
Thank you, sir.
:
Yes, I will make this very quick.
I too support the motion to ask the Public Sector Integrity Commissioner if they are conducting an investigation. If they are already doing so, then I support their getting involved for some of the reasons that were already spelled out. There absolutely seems to be a conflict, with counter-accusations being made between public sector employees. This almost feels like a street fight between public servants.
We also heard testimony from one of them that they felt that they didn't receive some of the protections that they believe they required for sharing their information and testimony. I do feel that it is right to bring an investigation by the Public Sector Integrity Commissioner into this discussion.
I do, however, agree with what my colleague said on two things. One is that I think there is a preliminary step to ask whether an investigation is already being conducted. The reason I want to ask that is that we have to be careful. Those are independent bodies. They are independent actors, the commissioners. They're independent of any political pressure. I want to make sure that we're careful of that and not be seen as influencing them in any way. I think it would be proper to ask whether they are already conducting an investigation. They may have information to bring to light that's important.
The other thing I wanted to emphasize—I've been saying this for the last number of weeks—is that I'd really appreciate it if the members around the table would cool the rhetoric with the political mudslinging and basically preening for the cameras just to get clips. Let us just stick to the facts. This issue is too important. The integrity of the procurement process and confidence in our public service and our public sector are important. I would just ask my colleagues around the table to cool it with the rhetoric and the mudslinging.
Thank you very much.
I want to reiterate that the Public Sector Integrity Commissioner, even by name, is all about maintaining integrity, and certainly it's not up to public officials to direct these independent bodies to do their job. They've already identified that they have the independence to do so in order to maintain integrity. I mean, we've heard from the Auditor General, the ombudsman and the Information Commissioner, all of whom have a duty and a responsibility, and they take great pride in ensuring that they're not interfered with in regard to the work they do. Let's maintain that integrity, as we should be maintaining integrity throughout these committee hearings.
Even today's overall discussions have an impact on this very issue in maintaining integrity in the investigation by sharing information that was confidential in the first place. I want to reiterate that I think our first step is to ask the Public Sector Integrity Commissioner if in fact they may already be investigating. If that's the case, let's find out before we proceed to make a motion to direct them.
I also agree that an independent investigation by the Public Sector Integrity Commissioner is well warranted, based on what the committee has heard to date. I don't believe it's necessary for the committee to first ask the commissioner if an investigation is already under way or that passing this motion would in any way compromise the independence of an investigation or interfere with an investigation that may have already begun.
An investigation by the commissioner, I believe, would be substantively different from the inquiries that have already taken place. The Auditor General focused on the economy, efficiency and effectiveness of the procurement around ArriveCAN; the RCMP is looking into the potential for criminality; and, of course, the CBSA's review is an internal review, and as has been established already before our committee, is not entirely independent. I think, given the severity of the allegations and the fact that there are disputes over what has taken place, having the Public Sector Integrity Commissioner conduct a full and independent investigation is certainly an appropriate step at this point.
I agree with my colleague that it seems we have a direction as a committee, and I hope that we can now move to a vote.
:
I think we'd be happy to call her as a witness. We can call the vote and then we can prioritize. We have a couple of open days coming up, but we could certainly invite her. It would be wonderful to have her in, period, if that's the will of the committee.
Some hon. members: Agreed.
The Chair: Perfect. I'll take that to mean that I will find time to invite her.
Can we go to a recorded vote?
(Motion agreed to: yeas 10; nays 0)
The Chair: Thank you, colleagues, very much.
Mr. Kusmierczyk, thank you for that suggestion.
Mr. Utano and Mr. MacDonald, thank you for joining us again. We appreciate all your testimony.
Colleagues, thank you for your patience and allowing everyone to go over a bit. For lots of the questions asked, I think it was very important that we got proper answers.
With that, unless there's anything else, we are adjourned.