:
I call this meeting to order.
Welcome to meeting number 134 of the House of Commons Standing Committee on Public Accounts.
[English]
It's nice to see everyone, and everyone's summer whites—an ode to the Olympics—and other colourful backdrops.
Today's meeting is taking place in a hybrid format pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.
I'd like to ask all members and other in-person participants to consult the cards on the table for guidelines to prevent audio feedback incidents.
[Translation]
Please take note of the preventative measures in place to protect the health and safety of all participants, including the interpreters.
[English]
Remember, colleagues, to only use the black approved earpiece. The former gray earpieces must no longer be used. Please remember to keep the earpiece away from all microphones at all times. When you are not using the earpiece, place it face down on the sticker, either to your left or to your right, which is there to ensure it is a safe distance away.
I remind you that all committee comments should be addressed through the chair.
[Translation]
Pursuant to Standing Order 108(3)(g), the committee is resuming consideration of Report 1 of the 2024 Reports of the Auditor General of Canada, entitled “ArriveCAN”, which was referred to the committee on Monday, February 12, 2024.
[English]
I'd like to welcome our witness. Appearing as an individual is Ms. Diane Daly.
Colleagues, Ms. Daly will be offering us some personal and I think even, at times, difficult testimony today. It is my intention to have a smooth meeting. I do plan to take a break after the second round, approximately one hour into the meeting, for about 10 minutes.
Without further ado, Ms. Daly, you have the floor, please.
:
Before I begin, Chair, as you can see, I hit my head on a door this morning.
I'm here to tell the truth, but I am very concerned that if I tell the truth here, I'm going to lose my job.
Good afternoon. I thank the committee for inviting me here as a guest to speak. I thank the chair and the committee for the same time consideration that whistle-blower Allan Cutler was allotted during the sponsorship scandal. I never imagined that I would be named in the House of Commons. I suspect that this is why I've been invited here. I'm happy to answer the committee's questions. I have been muzzled for some time now.
I've been a public servant for nearly 20 years. I currently serve as a supply team leader at Public Works in the real property contracting directorate. In December 2018, I was assigned to CBSA IT services to assist with the procurement backlog, providing administrative support and learning the TBIPS IT professional services commodity. From December 2018 to July 2023, I had no access to the CBSA, PSPC or any other Government of Canada procurement systems. When I seconded to CBSA, PSPC automatically cancelled my contracting authority. CBSA knew I had no procurement authority. CBSA did not permit me access to the CBSA procurement system or contract documentation.
Each department grants PGs the right to sign contracts on behalf of Canada. This permission is revoked when they leave for another position. Without this permission, access to procurement systems and documentation is denied. No one from CBSA, PSPC, TBIPS, clients or security has publicly clarified my lack of procurement authority, leading to public criticism and humiliation. My inability to speak out has been stymied by CBSA and PSPC security investigations.
I resumed procurement contracting duties in July 2023 at PSPC. I went over to CBSA as a PG-05 and I am still a PG-05. I did not receive a promotion.
On April 17, 2024, Mr. Firth mentioned my name in the House of Commons. My great-grandfather was one of the men who cleared the land to build the Parliament of Canada. I did not meet with Mr. Firth in person and communicated virtually due to the pandemic. My role was administrative, coordinating information for various stakeholders. I do not recall discussing IT requirements with Mr. Firth.
From 2020 to 2022, the issues of GC Strategies' very poor documentation, errors with submissions and slow responses to resolution for the errors have been raised with TBIPS PSPC managers and the contractor by me and other CBSA staff. I did not provide advice on RFPs or technical requirements. Only CBSA IT experts could do that. If Mr. Firth sent me any information, I would have forwarded it to the CBSA IT experts. I had no access to draft RFPs, and I'm not an IT expert. Mr. Firth should look at the contracts he was awarded for the signature of the contracting authority who signed it. I did not sign any contracts.
On December 7, 2023, I received an email from Michel Lafleur, CBSA security, to interview as an ArriveCAN investigation witness. I was seeking medical support for a cancer diagnosis, so I declined the optional interview. On December 13 and 14, my director general insisted on meeting me, and told me, in an MS Teams meeting, to give false testimony against my former bosses for CBSA's security interview. The PSPC DG and director offered to attend the security interview with me. During the meeting, my DG implicated the PSPC deputy minister and the CBSA president to pressure me further. I told them I had nothing negative to say about my former bosses. If I had witnessed any improprieties at CBSA, I would have reported them immediately to my director at CBSA or my senior director at Public Works. I would not have waited until I left CBSA.
Reporting serious occurrences to the Government of Canada is a critical responsibility. I have permission to share this with the committee to demonstrate where I reported a serious occurrence to the Government of Canada. In April 2016. a non-security cleared person from the Ottawa-Carleton Association for Persons with Developmental Disabilities, or OCAPDD, Tom Gillespie, went through the back door near the loading dock at the National Archives to strong-arm a signature from Sharlene Cooney, a non-verbal, developmentally disabled woman, to remove her community support services. This action caused the revocation of her provincial transfer funding from Rideau Regional Centre and is against DSO policy. He did not sign in at the security desk at Tunney's Pasture. Tom and other archives staff asked Sharlene to a separate room for an unscheduled meeting. In March 2016 Tom tried to have Sharlene sign a letter to remove herself as an OCAPDD client due to her reaction to a dental infection. His boss, Lisa Somers, and the executive director of OCAPDD, David Ferguson, were refusing the supports she needed and wanted the police to handle it.
Sharlene taped the meeting in March 2016. The previous year, Lisa Somers sent a male employee to Sharlene's emergency medical appointment without permission when she was already there with her long-term worker, who was known to the doctor. Dr. Levitan did not know Mike but let him in. This resulted in Sharlene losing her primary doctor.
On April 6, 2016, Sharlene fled towards the OC Transpo transitway. The Ottawa police told Sharlene not to return to the National Archives program, confirming OCAPDD is not allowed to harass and intimidate people. I reported this incident to the security office at ESDC on July 25, 2016. The federal government has not responded to this day.
When the MCCSS Ottawa received the report about the OCAPDD supervisor's harassment of Sharlene at the National Archives, OCAPDD and the Ontario Ministry of Children, Community and Social Services revoked Sharlene's Rideau Regional funding, established with the community transfer committee led by the late Dr. Bruce McCreary, and Sharlene received the attached funding for her care.
When reported to David Remington, the acting ADM of MCCSS and MCCSS Ottawa, the ministry moved to protect OCAPDD, an agency that uses multiple law firms with your tax dollars to ensure that the top legal firms in Ottawa cannot be used to advocate for clients, while the former provincial government cut legal aid for clients who are mistreated in this way from care centres, agencies and other not-for-profits. This legal aid cut occurred at the same time the Province of Ontario closed the last institution for special-needs persons.
In Ontario, developmentally disabled persons can only access legal aid for matrimonial dissolution, adoption issues, tenant disputes and criminal charges. These types of abuses towards this population by provincially funded not-for-profits are no longer covered by legal aid support in Ontario.
Registered letters were sent to the current Premier of Ontario's office and the 's Office. Neither office cared to reply, or cared, full stop.
The DSO has never restored Sharlene's community transfer funding and has not responded to passport funding application attempts, even though Rideau Regional clients with transfer funding are equally entitled to passport funding for personal needs and programs like Sharlene's communications books.
My former DG's escalating actions regarding the CBSA's security interview raised red flags. Like Sharlene, I felt intimidated and needed a record of the conversation to protect myself. Like Sharlene, investigations have rendered me unable to speak. Despite assurances from my DG and senior director that CBSA was not investigating me, ATIP records show PSPC began investigating me on December 11, 2023. Taxpayers should know that CBSA and PSPC are investigating me for alleged breaches of the CBSA and PSPC codes of conduct regarding procurement. I haven't had federal authorization to do procurement from December 2018 through July 2023. I am currently on administrative leave from Public Works.
I believe this is because CBSA and Public Works did not get the negative narrative expected about two former bosses at CBSA in the January 15, 2024, security interview. My former DG was appointed DG of the new professional services transformative solutions sector on March 27, 2024, two weeks after I was placed on leave. This sector manages TBIPS.
This promotion was likely approved by the deputy minister of PSPC. It should be noted that the current PSPC deputy minister previously worked at CBSA between 2007 and 2016.
Mark Webber, president of the Customs and Immigration Union, emphasizes the need for better protections against excessive discipline and abuses of authority. According to the policy on investigations, allegations must be filed by a manager from the employee's department. If an employee is called for a security interview, their direct manager should inform them, not a higher-level official as my former DG did.
My senior union representative has stated twice that they've never seen anything like this. Senior management and political employees pitting federal government workers against each other to create false allegations and divert investigations from TBIPS issues is akin to a malicious 911 call on a co-worker.
My job is under threat because of what I saw, not what I did. No one wants me to speak about TBIPS. Ongoing Auditor General and OGGO investigations and reports of double-dipping, contracting improprieties and the political pressure on December 15, 2023, has made me realize why PWGSC is trying to keep the focus on CBSA's software application issue and away from PSPC's TBIPS.
PG-06s and PG-05s at PSPC signed or orchestrated the contracting processes for GC Strategies, which CBSA procurement staff were instructed to follow precisely.
TBIPS is a PSPC mandatory tool for federal departments to purchase IT professional services, an online shopping catalogue, like Eaton's, where TBIPS team members pre-qualify contractors and companies like GC Strategies and place them into the government-wide purchasing catalogue. No manager, DG or minister in the federal government is permitted to buy IT pro services from any other source but this TBIPS-designed catalogue. There may be exceptions unknown to me.
On October 1, 2020, I attended a meeting with the senior director of TBIPS, the manager of TBIPS and my CBSA executive director. I questioned the RFP and SOW processes, as they were more complex than usual government procedures. The senior director of TBIPS stated that it was common for TBIPS to advise clients to ask TBIPS suppliers for IT requirement suggestions. I had never encountered this in the private sector or federal public service. Asking for policy or legal teams about the senior director's instructions would have been seen as insubordination.
The PG-06 of TBIPS trained me on the formatting of documents. She was the primary manager responsible for overseeing and approving these documents. Although I am not part of the CBSA IT department, I acted as a liaison, facilitating the flow of IT requests between CBSA IT, CBSA procurement, and PSPC TBIPS, according to TBIPS instructions. My role involved filling out the necessary forms, but I did not have the authority to generate purchase requisitions, create contract documentation, spend money or sign contracts.
Taxpayers should know that I was unaware that the TBIPS buying unit was housed where the TBIPS catalogue is produced. I found this out in February 2024 through a Google search by several IT consultants. I believe the ArriveCAN app investigation has uncovered a more damning issue outside of ArriveCAN. It's called TBIPS at PSPC. I do not work at TBIPS. The PG-06 manager of TBIPS oversaw my work. At every stage she trained me. If there were issues with my work, she would have informed me and my director, and she should have corrected me.
CBSA procurement was also being guided by TBIPS who were often signators on the GC Strategies contracts. I'll quote my sister, who currently works in compliance: “This TBIPS issue will escalate CBSA into a Procurement Pox affecting many more departments, Ministers, and DGs throughout the government. It’s a financial nightmare. The TBIPS tent should be dismantled and separated, with catalog vetting done independently. No PGs, especially active designated PGs, should be housed in the same vicinity, similar to how Contract Security operates separately from buyers. The appearance or direct conflict of interest is akin to having a Mergers and Acquisitions group in the same area as stockbrokers. There is a reason for the division of duties in an investment house—it’s called insider trading.”
CBSA and I had been reaching out to the manager and the team of TBIPS regarding ongoing problems with extremely poor documentation from GC Strategies since 2020. In the spring of 2022, the manager of the BTID DGO, the manager's administration officer and I met with both the supply team leader responsible for the $25-million TBIPS RFP contract and her manager to discuss various issues regarding recurring poor documentation from GC Strategies, noting that there had been no improvement in this matter over several years. Instead, the situation became worse. The manager of CBSA BTID DGO and I asked if the RFP could be cancelled and retendered, given the reporting of this information and the lack of resolution to the ongoing problems with paperwork from GC Strategies.
TBIPS stated that they could not delay awarding the contract to GC Strategies despite the information provided by our team. PSPC proceeded to award the contract to GC Strategies despite the reported issues with the supplier in the spring of 2022. The $25-million contract was signed by an authorized PG-05 from the TBIPS team, not me.
Thank you.
:
“They're investigating two individuals—not you—within the organization. As part of the story, because you're involved, your name pops up many, many times, but there are no—not necessarily in some of the stories that they're developing—there's holes, and there's not necessarily documents that are associated to those holes. So they need, and unfortunately, you have an obligation to respond, and we'll get to how we're going to support you, because we're going to have to respond. They will need to interview you and to fill in those gaps in information that they have in the story. Can I just say that? Yeah.”
I said, “So the information I have via email from CBSA clearly states it's an option.” “Why? Really?” “Yes, so it's an option.” I said, “Respectfully, I decline.” “Okay, I didn't know that.” “I have it in writing,” is what I replied to her. “Okay, I'm very uncomfortable with who they are and they”—my former DG and my former senior director or executive director at the CBSA, Antonio Utano and Cameron MacDonald, who were at OGGO—“are honest, transparent, integrous people. I worked with Cameron when he worked at Public Works, for instance. You can ask anyone in real property who he was.”
I say about Ms. Dutt, in answering a former committee member's question, this woman came to OGGO with these things. I don't even remember her name. It was a name on a task authorization, by the way. This was a TA amongst many TAs. That was in The Globe and Mail, me asking for somebody who had already been paid to pay this person, which was perfectly fine.
“Tom and I discussed that,” is what the DG said. I replied, “Yeah, so I try and do the best by everybody. I'm telling you, I'm advised that I know that Minh Doan was known in the IT group.”
Minh Doan, I was told, by the way, decided to go with GC Strategies. I don't know that for a fact, which I informed the CBSA of in my email. I said, “They asked me to reconsider, and I did not respond after I had already made a fulsome statement.”
My DG said, “As an option, you know what, Diane? I'm not going to argue with you. Would you be comfortable sharing the information?”
She said, “Well, I think, like, first of all, I think it would be fair, I do not...what I was going to suggest to you today—and this is all new information that was presented as an option to you—was that we as your employers support you through the process. We would be there to make sure you don't feel like, I don't know, like a fish in a crocodile pond when you're interviewed by the CBSA. They're just doing their job, is how they [Inaudible—Editor] information got presented to me and Tom. Like, they have a job to do. They're the equivalent of the departmental oversight branch.”
“The departmental oversight branch does internal reviews here within the department. This is what they were doing there. However, given the profile of this file, and I'm sure you've responded to audit questions before in your career as a public servant, this feels different.” I said, “I can just imagine they are a police force unto themselves, so I do not trust what they have to say, to be clear.”
“Okay, so in order to make you feel comfortable, what I'm going to suggest to Michel is that one of us management sits with you through this process, because the way things were presented to me, despite what they wrote to you, was it's an obligation.
:
Thank you very much, Mr. Chair.
I want to continue on with the line of questioning from my previous round related to the misconduct.
Ms. Daly, I agree with you, largely, in your comments, but I don't agree with your summation of what qualifies as misconduct and what your responsibility is, whether you're a low-level public servant, as you called yourself, a medium public servant or even a deputy minister. The responsibilities under CBSA policy require that, if any instance of a misconduct report is made to any person, including you in your position, it should be reported. You failed to report it.
I'm not saying that you're responsible, of course, for the gross negligence that took place, including at TBIPS. I agree with you that we need to conduct a very serious review of TBIPS and how companies like GC Strategies, a two-person company, could have gotten on that list. I'm saying that this is a very good example of systemic corruption where small pieces and the firewalls between them have isolated public servants to the position of not knowing whether or not something is misconduct. It's clear from your testimony today that you don't actually see this as a level of misconduct. Failing to report a serious allegation to a superior didn't in your mind meet the threshold to report a misconduct.
That's not your fault alone. It's the fault of your managers. It's the fault of the managers above them. Ultimately, it's the fault of whatever is happening at TBIPS that would have initiated this level of corruption.
That is my summation of what we've heard today. I fully take your recommendation that there should be a serious review of the TBIPS list and how suppliers got on that list. But there also has to be accountability with regard to the fact that there are policies in place that govern public servants, all public servants, and that, in the instance of a serious allegation like that, of a contractor not knowing they're a subcontractor and only finding that out after raising the alarm that they're not getting paid, it directly resulted in this issue and in why you're here today.
I fully appreciate your testimony, Ms. Daly. Your recommendations I also appreciate. What I ask is that this committee take serious consideration as to how GC Strategies was able to continue in this relationship when misconduct was in fact raised and the policy failed to be adhered to, wouldn't you agree?
:
Yes, Chair, I'll make a few comments about it. Thank you for the opportunity.
This is a motion following Ms. Daly's explosive testimony today. It seeks to invite people her testimony implicates or addresses to come before this committee and respond to the important points she made. It's also about seeking material information that we need as part of our investigation.
Here is the context as I see it. What are we trying to do here at public accounts?
This committee is looking for the truth. We want to get accurate information to get to the bottom of what happened in the arrive scam affair. We clearly have different members or factions within the senior public service who are criticizing each other, accusing each other of lying, of covering up information, of trying to cover people at the political level, etc. We have these very serious accusations flying back and forth between senior officials within the government. It's all a mess. Money has been wasted. There are accusations of intimidation, of cover-up, of reprisal that this committee has to get to the bottom of. This compounds the concern about the arrive scam affair itself, the tens of millions of dollars that were spent, the broken system of government contracting, but also the lying, the corruption, the cover-ups, the reprisals and the accusations back and forth between different officials to that effect.
Ms. Daly has had the finger pointed at her. She has come back and provided a number of points to counter that, including evidence about various senior officials and things they have said to her. Also, she has referenced a recording—a lengthy recording—involving her and people who were investigating her. I think that recording is critical for us in understanding whether or not she's faced intimidation, the tone of that, the expectations. What she has told us as a committee is that she was expected to point the finger at Mr. MacDonald and Mr. Utano. When she didn't do that, that led to a kind of aggression and pressure. We need to hear that recording to get to the bottom of whether or not her testimony in this regard is credible.
Here's how I see the process having unfolded. On November 7, Mr. MacDonald and Mr. Utano were before OGGO. At that time, they delivered critical testimony of the government. They called leading government witnesses liars. They gave scathing testimony. They identified that as part of the response to the ArriveCAN affair, Minister had been seeking someone's head on a platter. He wanted someone's head on a platter. Later that month, these two—Mr. MacDonald and Mr. Utano—got letters indicating further investigation for bad behaviour, right after their committee testimony strikingly, and they were later suspended without pay.
Ms. Daly was brought in in December. She was, according to her testimony, asked to point the finger at Mr. MacDonald and Mr. Utano. She said no. Later that month, they started investigating her. Now you have another public servant, a third, who's under investigation, who appears to be brought under investigation in the same month where they were refusing to play ball with the government's narrative. This raises big questions.
On February 12, the Auditor General put out her scathing report on the arrive scam affair in which she said, among other things, that GC Strategies worked with government officials discussing the specifications of a contract they would then bid on, and obviously, that's a problem.
Kristian Firth came to OGGO on March 13. He refused to say who he sat down with, which officials were being referenced in the Auditor General's report. He was so committed to refusing to give that information that he was called to the bar of the House and admonished in order to give responses.
This brings us to late April, April 17. At that point, he readily gave the name of Diane Daly, a relatively junior public servant who already was under investigation, although he's not supposed to know she's under investigation.
The whole thing begs the question: Why did Mr. Firth give Diane Daly's name at that point? Maybe, after having covered up for so long, he finally decided to do the right thing. That's one explanation. He just decided at that point he was going to do the right thing. Another possible explanation is that Mr. Firth had decided to support the Liberal government's efforts to pin the blame for the arrive scam fiasco on a few officials while absolving others; that he was supporting efforts to help achieve Mr. 's sought after head on a platter by facilitating efforts of some in government to point the blame at other senior officials and effectively try to cauterize the wound to keep the discussion from actually digging all the way through to the answer. This really exposes a sharp division among senior public servants about who is responsible.
For what I think are obvious reasons, I am deeply suspicious of anything and everything that Kristian Firth has said in committee, in the House and in public. I certainly don't think we should take at face value his claims about Ms. Daly. I think we need to investigate them further, which is why, in the interest of answering the questions we need answered and in the interest of getting to the truth, I put forward this motion to bring in key witnesses who can respond to Ms. Daly's testimony, and to also get that recording.
I think this should be a fairly simple matter. This is about getting to the truth. These witnesses and that recording will allow this committee to get to the truth: Was Ms. Daly, in fact, someone who was deeper into this than her testimony suggests, or are other people within this Liberal government trying to point the finger at her to protect themselves from blame splashing back on them?
We want to get to the truth, and this motion will help us do that.
Thank you, Chair.
:
Chair, your hint is well taken. Thank you very much.
I was looking forward to my speaking slot in this meeting, but here we are speaking to this motion. I would like to refer to the talk of a narrative, that it's a Liberal narrative and a government narrative and so on.
I'm wondering if the witness is aware.... She is an experienced civil servant. I was going to ask her how she felt about her testimony, which is heartfelt and has been very detailed, and of which I still have questions regarding some of the responses, dates and conversations that don't seem to line up. I was looking for clarity on those responses, yet I wonder how the witness feels about her testimony being used to basically be a Twitter feed for members of the official opposition.
I say that if that's the case, and if the witness's name is dragged into that kind of partisan narrative, I would deeply regret it if that were to happen. I think the witness, as an experienced civil servant, can see what has been going on here today.
That being said, regarding this motion, it is one that I also have difficulty understanding, because the public accounts committee is not an investigative body. We're certainly not an investigative body doing deep dives into wrongdoing. That is the work of the Auditor General. We review the reports of the Auditor General, and then we go into detail about those reports, which is what we have been doing here, even though at many times, actually, it's quite redundant in the testimony that we hear and the hearings that have been called for.
This topic, and what we have heard today from the witness, is already part of an internal investigation. I would be very reluctant, and I wonder if the witness feels the same way, for us to interfere with that investigation. I don't know how it would be helpful.
As for Kristian Firth, who has not appeared before this committee, though we've seen much of his testimony both in OGGO and in the House, I'm not sure what else we can get from him.
It's very weird that we are here today and it's very bizarre to be going down this rabbit hole and subjecting, quite honestly, the witness, who has been forthright, to being accused of not being forthcoming in her testimony here today.
That's all I have to say. Thank you.