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Good afternoon, everyone. Happy new year.
I call this meeting to order. Welcome to meeting number 97 of the House of Commons Standing Committee on Government Operations and Estimates, also known 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 on the study of the ArriveCAN application.
I will remind you to not put earpieces next to the microphones, as that causes feedback and potential injury. I will also inform everyone that the witness appearing by video conference has completed the required connection tests in advance of the meeting.
We have Mr. Brennan joining us virtually.
I believe you're in Toronto, Mr. Brennan. I understand that you have an opening statement for five minutes. Please go ahead, sir. The floor is yours.
Mr. Chair and honourable members of the committee, my name is Vaughn Brennan. I am grateful to be here today and for the opportunity to respond to the claims and allegations made against me in the media and in testimony given by others who have appeared before the committee.
The story is compelling, but the allegations levelled against me are false. It’s been said that I am a political insider who rubs shoulders with ADMs. I’ve been referred to as the man who developed the $500-million business case that led to the creation of Shared Services Canada and as a lobbyist with extensive government connections in Ottawa. Concerns have been expressed regarding comments I made about millions of dollars being “a drop in the bucket”.
Mr. Chair and honourable members of the committee, I am not a lobbyist; nor have I ever been a lobbyist. I have been working as a professional consultant in Ottawa for over 20 years, and I have made some contacts during that time. However, I do not rub shoulders with ADMs and do not have extensive government connections; nor have I ever claimed to.
The suggestion that I am Mr. Firth’s mentor is false. I am not Mr. Firth’s mentor; nor have I ever been his mentor. I do not know Mr. Firth personally, but I have dealt with him professionally several times over the years. I can’t speak to conversations between the witnesses and/or to witnesses and reports, as I wasn’t privy to them. However, I reiterate that the claims and allegations raised against me are false.
I’m a professional consultant, husband and father. As a professional consultant, I work with both the public and private sectors in the national capital region. In the public sector, my services include demonstrating how Government of Canada priorities and direction will align with industry standards and best practices, business architecture consolidation, change management, organizational design, and business and IM/IT transformations.
I met Mr. Firth over 10 years ago and have maintained a professional relationship with him. Mr. Firth contacts me with work opportunities that he feels might fit my skill set. Over the past 10 years I have completed two separate pieces of work through GC Strategies for the CBSA.
First, I developed an inventory of transformation projects for the transformation office, following industry-standard change management principles. Second, I identified how the CBSA could standardize the adoption of the Agile project management approach across the department for greater efficiencies.
It was Mr. Firth who introduced me to Botler—Ms. Dutt and Mr. Morv—in November 2019. In September of this year, Mr. Curry from The Globe and Mail informed me of allegations of fraudulent invoices and résumés relating to Ms. Dutt and Mr. Morv's engagement on a task authorization associated with a contract awarded to Dalian and Coradix.
I was not listed on the TA or subcontracted by Ms. Dutt and Mr. Morv to work on the feasibility study. My contract was directly with Botler to provide advisory services, research assistance, document compilation and report writing.
After our meeting in 2019, I spoke and interacted with Ms. Dutt and Mr. Morv on occasion. I was thrilled to work with Botler, a small Canadian business whose strategy might help the federal government prevent and handle harassment-related issues. I was asked to draft a marketing letter addressed to . The letter was amended by Botler and GC Strategies, at which point we talked about sending it to Minister Freeland’s chief of staff as well. The Government of Canada Employee Directory Services, or GEDS, available to all Canadians on the Government of Canada website, was used to make sure Botler’s marketing approach aligned with the hierarchy in the DPMO's office. The majority of our marketing discussions were based on hypothetical scenarios.
In early 2021 I signed a contract with Botler—spanning February 1, 2021 to August 1, 2021—to support Botler’s research and marketing strategies. In total, I invoiced Botler $2,565.10 for my services.
It’s been stated that I mentioned a licensing fee as being “a drop in the bucket”. While this is accurate, my statement has been misinterpreted. My remark was conjectural and based on the results of a review of publicly available data regarding harassment concerns at the Royal Canadian Mounted Police, the Department of National Defence, Correctional Service Canada and the Canada Border Services Agency, as well as on the findings outlined in the Auditor General’s report. For example, in September 2022 the Federal Court of Canada certified a $1.1-billion class action lawsuit against the RCMP over allegations of bullying and harassment.
I was invited to testify before the committee regarding the CBSA ArriveCAN app on October 31, 2023. I initially declined the invitation because the narrative was around the ArriveCAN app. I have never worked on the ArriveCAN app.
My personal and professional lives have suffered greatly because of attacks on my reputation and integrity over the past several months. This has negatively impacted my wife’s, my children’s and my mental health and well-being.
Mr. Chair and members of the committee, I thank you for the opportunity to address the claims made about me and to share the facts openly and honestly.
Thank you.
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Mr. Chair, I wish a happy new year to you, to all committee members who are here today and to those who are subbing in for other committee members.
It's a pleasure to have the government operations committee functioning once again. Congratulations to everyone on the committee for having it named the best committee in the House of Commons. That's a big achievement for everyone.
Mr. Brennan, thank you very much for taking the opportunity to be here today.
ArriveCAN has plagued this nation. This is the touchstone of scandal in a government that has become synonymous with scandal. I could go on and on about other scandals that we've seen, for example, the green slush fund and the WE Charity scandal. As a result of these scandals, so many individuals, including current and former Liberal ministers, have been thrown under the bus. This week in The Globe and Mail, we saw that two public servants have also been thrown under the bus by the Liberal government, because Liberal ministers are not willing to take responsibility for their oversight of the ArriveCAN scandal. In this particular case, it has led to CBSA and RCMP investigations. These continue to plague not only former employees of the CBSA and the public safety department but also individuals throughout the public service who are asked about their willingness to speak up as to what they have seen, their communication with senior executives and their communication with ministers.
The unfortunate thing is that, in our uncovering of this over the fall, most of the feedback I received personally and on my social media was related to you and your relationship with the and her office. I think that this is only one of many individuals who are implicated in this scandal, not to mention these two individuals who were able to skim $11 million by working in their basement and doing very little. As well, they committed crimes of fraudulent résumé changing and perhaps even collusion.
We have you here today because we fundamentally want to get to the “who” at the highest level.
Mr. Brennan, you have begun some of this in your testimony, and I thank you for doing that. How many executives would you say you know personally in the Canadian public service?
Similar to what my colleague Mr. Sousa said, this study isn't focused on the contract with Botler AI or even the contract with GC Strategies, but rather ArriveCAN and its costs. The Botler AI situation revealed a practice that seems to be accepted by Canada, but that raises a number of questions about various things such as overcharging and multiple intermediaries. It also raises questions about the mechanism for monitoring expenditures, but especially results.
You're a business process expert. What could Canada do to improve the procurement process for IT services and artificial intelligence, in particular, so as to avoid multiple intermediaries and overcharging?
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Chair, thank you very much for this question in particular.
Again, as a consultant I have no visibility to a company bid. I'm one of many that would go into an RFP, if you will.
If I could suggest, the resource bid is the resource hired. At a minimum, the resource that has bid on that RFP would be offered the first right of refusal. I can give you so many examples in which my CV was used to win business and I didn't find out until weeks later that they had either substituted an employee, a colleague or another consultant, or changed the terms and conditions. I would absolutely ask for what I call “resource bid is resource hired”. That way at least the federal government would get the resource that it is looking for, and the resource and quality it's looking for, as well as what it's paid for.
On March 25, 2021, you forwarded an internal CBSA email from the president to Botler and Firth. The excerpt from the email is, “It's with mixed emotions that we announce the departure of Pat Boucher, Vice-President and Chief Transformation Officer, from the agency...Pat's last day at the agency will be April 19, 2021. Geneviève Binet, the Director General of Enterprise Transformation in CTOB, will be assuming his responsibilities on an interim basis. We know we can count on your full support for Geneviève and CTOB in this time of transition.”
Was there not something in my original question about transferring internal government information or communications to third parties who are not the intended recipients?
Good afternoon, Mr. Brennan. There are a couple of loose threads that I want to continue discussing with you, based on questions you've received from colleagues.
I get the overall impression that you wish to distance yourself from any formal or informal relationship with Mr. Kristian Firth. I can probably understand your motivation to do that, given that he's testified twice at this committee. His credibility is certainly an issue. He's been caught in a number of lies, and he's under investigation by the RCMP.
I am going to give you an opportunity, sir, to reflect on my comments as I ask you further questions about your relationship with Mr. Firth, but before I do that I want to go back to the original Bill Curry article in The Globe and Mail from early October. It really sets out, towards the latter end of the article, your involvement in the Botler controversy and scandal with the government.
Specifically, the reporter reached out to you. You indicated to the reporter that your reference to having inside knowledge was a fabrication. You clarified that and said you had “'fibbed' in an effort to put pressure on Ms. Dutt to take more action on the file”.
We're all adults in the room. The last time I heard the word “fibbed” was in relation to my five-year-old twins. They're 14 now, and they certainly don't use the word “fibbed”. I use the word “lied”.
Do you admit, sir, that you definitely lied to Ms. Dutt to take so-called action on the file? Is that correct? Am I reading that correctly?
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It's your definition of “fibbed”. Okay, I'll take that. I don't know if Canadians will, but I'll accept that for the purposes of the time that I have.
You then further responded to Bill Curry in an email and a follow-up phone call. You're quoted as saying, “I did not and do not have any contacts within the Liberal government nor in the PCO.”
Setting aside the PCO, based on what I've heard so far for the past half-hour, that statement again would be a lie, because you've already referenced a number of government officials. It's not just, as you put it, “I deal directly with directors and managers.” You've dealt directly with deputy ministers and assistant deputy ministers, if not ministers themselves. The question I put to you is this: Why are you continuing to lie, sir?
I'm looking at an email from your company. You're the owner and director of TEALAV Consulting Inc. It's an email dated January 25, 2021, at 4:33 p.m. to Kristian Firth. The subject is “Following up on Privy Council opportunity”. It doesn't say they just picked up an idea or a thought from Botler. It says, “Following up on Privy Council opportunity”.
In the email, you say to Kristian Firth, in reference to your conversation with him that afternoon, “I pulled together research and a suggestive path over the past two to three days to compile a deputy minister level email illustrating what I feel is pertinent to the value Botler AI can provide.” You identify the honourable , Deputy Prime Minister, Government of Canada, and you include a draft letter. The only thing that was missing in the draft was details with respect to Ritika Dutt's phone number.
This, sir, did not come from Botler. It did not come from Ritika Dutt. It did not come from Mr. Morv. It came from you. You did the research. You reached out to Kristian. You worked on this over three or four days. Then I have a series of emails back and forth between you and Botler, with Botler making some suggestions for changes to the email and you providing the email address for and her chief of staff.
Do you want to reflect on what you told the committee earlier, sir? Are you prepared to admit now that this was your idea, that you thought of it? You cleaned it up and you provided all the details to Botler to send this email directly out to one of your government contacts in the Privy Council Office, did you not?
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Well, I personally can't see any smoking guns involving you.
I wanted to ask you this, because you described yourself as a business architect and somebody who looks at and is expert in government resource management. As far as I can see, one of the accusations from the opposition with respect to this whole matter is this contractual chain of command. CBSA contracted with GC Strategies, who in turn contracted with Botler AI, who in turn contracted with you. One of the accusations was toward GC Strategies, the initial contractor who subcontracts. They get so much money for basically doing what? That's the accusation—that this is a really inefficient system, that they take money for basically doing nothing. Certainly, we've had some response from various people who say, no, that's not the case.
You mentioned yourself the difficulty of contracting with governments, per se, and the amount of time it takes. Can you just lay out for the Canadian public what you think is the value added from companies like GC Strategies, who in turn subcontract? Is this a big waste of our taxpayer money?
Sir, I have to say, with respect to this investigation in general, that our goal at this committee is just to find out what actually happened. It's to get to the truth. People with nothing to hide should be able to give us frank and clear answers. What makes me and I think many members of the public even more suspicious about what's gone on in the context of this procurement is that we have witnesses give obviously absurd answers.
To Mr. Brock's question, you couldn't distinguish.... You said you fibbed about something and then you said it wasn't a lie. Then, here, you're telling me that you did send a text. The text you sent claims to have explicit knowledge of what happened inside the 's office. You're saying you didn't have that knowledge that you claimed to. Now you're saying, well, it was because you were describing a hypothetical scenario.
You weren't engaged in some kind of cosplay game. You were telling your client what you claimed to know was happening, and you're telling us you didn't know what was happening. How am I to make sense of this?
I want to get back to the quote in The Globe and Mail about how you “fibbed”. My understanding was that it was about your contacts in government and hearing back from them.
I've heard, I think, on this panel that you were talking about a hypothetical or it was a misquote, and you were referring to GEDS. Maybe I'm dense, but I'm just not clear on the context.
Did you say you fibbed? What were you talking about? That seems to be one of the main fingers being pointed at you. You said you fibbed and now you're saying you didn't. I just want to clarify what that's all about.
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Do you understand, sir, that Botler has hours and hours of taped recordings? Do you understand that, sir?
There is an audio recording that was made between Botler and Firth, in which Mr. Firth refers to you as the guy who wrote the business case for Shared Services for $5 billion. Firth asks Botler whether, if he gave you to them free of charge, they would like to have you work with them.
That was dated October 26, 2020. On the same call, Mr. Firth says he'll tell you to bill a few days here and there, and then he, Mr. Firth, would charge it to CBSA.
What is going on here, Mr. Brennan? Taxpayers have a right to know if they're being fleeced by you.
Did you work free of charge?
Mr. Brennan, it seems to me we've been discussing three issues with regard to your activity. You've had accusations made against you.
One is that you've been lying with regard to certain issues with respect to the semantics of the word “fibbing”. Another one, most recently made by Mr. Brock, is that you've overcharged on issues that you've worked on. The last one is around this notion of lobbying.
We've discussed the issue of what happened with regard to the fib. For the benefit of this committee, can you explain the billing that you did with regard to Botler?
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Sure. I was contacted in February last year by a law firm, and that law firm asked for significant pieces of information. We were in discussions, if you will, of whether they were in the scope of the contract, or not, that I signed with Botler.
I said I would go and do that work if they paid me for the time I sat on meetings for Botler—not for the federal government, but meetings that I sat on for Botler. If they paid me for those, I would go and do that extra work, and that's where that invoice came from.
When I sent the invoice to their legal firm, they sent it back saying, “No, this belongs to GC Strategies.” I was led to believe that they were no longer in business, so I just sent it back and threw it on the pile, thinking that it might just be...you know, along with GC Strategies, that I'd get paid for the work they were asking me to do.
I have not heard anything from them since.
I think at this point it's important to take stock of and summarize where we're at in this whole ArriveCAN scandal and series of hearings. There are a few things that we know as a committee.
Number one, we know that $54 million was spent on an app and spent through a two-person company that did no IT work, was given the contract and subcontracted all of it. Also, we know that the RCMP are investigating contractors that have a relationship to this project.
We know the procurement system is broken. Government members—Liberal members—have testified to this at this committee. They've talked about the unwieldy and complicated nature of our procurement system and about how we have had substantial growth in the public service, as well as substantial growth in spending on bureaucracy. We have a bizarre procurement decision around ArriveCAN, and we have a procurement system that is broken overall and is leading to a proliferation of consultants hiring consultants hiring consultants, who have never done better than they are doing right now.
We also know that this committee has been repeatedly lied to by various witnesses in response to various kinds of questions.
Kristian Firth contradicted himself terribly in the course of his own two-hour testimony. We have a witness today, Mr. Brennan, who has told us that what he put in text messages previously was not true: Either he was stating untruths in text messages or he is stating untruths to us as a committee. We further have Cameron MacDonald and Minh Doan, two senior public servants, accusing each other of lying to this committee about who was responsible for the decision to procure ArriveCAN. We have multiple instances of people lying or accusing each other of lying. In some cases, we don't know who it is, but in the case of Mr. MacDonald and Mr. Doan, we know that one of them is lying.
Now, just this week, we have a story coming out about severe professional consequences against public servants who have testified at this committee. We now have a story that Mr. MacDonald and Mr. Utano have—incredibly—been suspended from the public service without pay in the middle of an ongoing investigation.
Clearly, this procurement decision—and procurement overall—has significant problems with it, but what I'm most struck by is the cover-up we are seeing in the context of these hearings. It should be fairly easy both for public servants and for consultants to appear before this committee and simply tell us the truth. It is not a stressful proposition to appear before a parliamentary committee if you simply plan to tell the whole truth and nothing but the truth, but when we have people who say, for instance, that a text message they sent was “speculative and hypothetical” when it has every indication of stating direct knowledge of what happens inside government, then it raises other questions, and specifically why there is this ongoing multi-dimensional cover-up from both public servants and consultants.
It makes me wonder if one of the reasons people are so reluctant to be forthright and answer direct questions is the kinds of reprisals we've seen. When you have senior public servants who are a bit more forthright, in the case of Mr. MacDonald and others who have been, and who then see negative professional consequences after they've testified before this committee, it maybe elucidates why there has been a reluctance for people to come forward, but it also raises the question of what's behind all of this. What is being covered up? What would we find out if we actually got the frank, honest and clear answers that we want from public servants and consultants?
Let me propose what I think is more than speculative and hypothetical regarding Mr. Brennan's testimony. I think it's very likely that he does have a contact inside the 's office, that what he said in his text messages was accurate, that he wasn't just making things up in repeated communications with other individuals in the text messages, but that he was telling the truth at those times. Now, for whatever reason, he is embarrassed about and reluctant to acknowledge that he somehow had intimate knowledge of the workings of the 's office, and he is running away from the suggestion that he has any kind of contact or relations within government.
It just doesn't make sense to me that somebody would say outright falsehoods in text messages and then dismiss them as, “It was just a text message. It was just a hypothetical scenario.”
He was making statements to other people he worked with and making specific claims about the kinds of conversations that happened inside the 's office. The only logical explanation for Mr. Brennan's repeatedly making claims about having intimate knowledge of what was happening inside the Deputy Prime Minister's office is that he actually had such knowledge.
Needless to say, this whole ArriveCAN affair stinks. It demonstrates the broken procurement system that exists under this government, but it makes me extremely curious—and I think it will make the public extremely curious—about what is being covered up. What will we find when we can actually get to the bottom of what took place?
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Wow. What a great clip that's going to be.
Mr. Brennan, a number of times, you talked about hypothetical and speculative scenarios that you were working on with Botler to help them. You've already said you completed the work that you did for $2,565.10, and there was this goodwill whereby you were trying to help this company. You worked on a number of hypothetical and speculative scenarios with them and the draft of that letter to the 's office—however it was founded, whether it was through Botler or with direction from Botler—and to Mr. Firth.
Was there any expectation as part of this work that if and when a Botler AI solution was licensed and rolled out, you would somehow be compensated or you would have some type of compensation as part of that? Might that be the reason that there was an invoice of $12,000 sent to the lawyers, as per your claim?
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Sure. We could go right into what the architecture is and how Botler could map what the federal government might be looking at doing.
The federal government is looking at a data strategy and a data artificial intelligence strategy. Botler is an AI company, so what would the scenarios be, if you were in hypotheticals, of what the federal government might standardize? The same way that the federal government has a standard HR application, how would it look at mapping its data to that HR application? What would be the hypotheticals? What would be the speculatives, if you will, in the same way that any of those conversations we had in texts were all hypothetical and/or speculative?
It's part of the marketing process. As you learn, you know, “That's going to work. No, that's not going to work. That might work.” So—
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I apologize for interrupting.
You had an understanding of Treasury Board strategies, specifically around AI and specifically around the organization structure process engineering, because those guys are the ones who set the guidelines.
You ran into Botler AI, and they said they had an application that made you feel, “I really want to be part of this.” They said, “No, but help us. We'll pay you,” and you said, “Fine.” You then came back and said, “If you present the application or if you consider these functionalities within this application, it's very much aligned with what the government might be looking for.”
If my understanding is wrong, just tell me I'm wrong. I don't have any problem with that.
You said, “As it relates to the data, if you amend your solution like this or if you enhance your solution like this, it's a better fit. If you incorporate these types of processes into your AI process around HR, it will be a better fit for that.”
Those are the hypothetical and speculative situations that you are talking about. Am I right in understanding that?