(i) the Auditor General's ArriveCAN audit determined that the app cost taxpayers at least $60-million, but concluded it is "impossible to determine the actual cost of the application",
(ii) the Procurement Ombud found that in 76% of ArriveCAN contracts, some or all of the contractors' proposed resources, such as subcontractors and employees, did not perform any work,
(iii) GC Strategies, an IT company that does no actual IT work, was paid nearly $20-million in relation to the ArriveCAN app,
(a) call on the Prime Minister to table in the House of Commons, no later than Monday, March 18, 2024, a report which details the complete direct and associated costs concerning the ArriveCAN app incurred to date, including the total amounts paid to contractors and subcontractors, broken down by contractor or subcontractor, and the value of staff time represented by the salary, bonuses and other expenses paid to all public servants who worked on the app, in relation to all expenses respecting,
(i) research and development of the app,
(ii) management and storage of the data collected by the app,
(iii) software development, testing and maintenance,
(iv) training for government employees for using and troubleshooting the app,
(v) call centres used for the app,
(vi) ArriveCAN-related communications with travellers by e-mail or text message,
(vii) market and opinion research,
(x) merchandise, gifts and promotional material,
(xi) processing of security clearances,
(xii) travellers' expenses after being wrongfully directed by the ArriveCAN app to quarantine,
(xiii) the services of legal counsel involved in contract negotiation, litigation arising from procurement or the use and implementation of the app, and the numerous investigations conducted related to the app,
(xiv) any other costs related to the ArriveCAN app; and
(b) call on the government to collect and recoup all funds paid to ArriveCAN contractors and subcontractors which did no work on the ArriveCAN app, within 100 days of this motion being adopted, and for the Prime Minister to table a report in the House demonstrating that taxpayer funds have been repaid.
He said: Mr. Speaker, I will be sharing my time with the hon. member for .
After eight years, this and the costly coalition with the Bloc Québécois are not worth the cost or the corruption. After eight years, everything costs more. This government's inflationary taxes and deficits are driving up the price of essentials so much that two million people a month depend on food banks. That number is incredible; it is unprecedented. After eight years of this Prime Minister, work does not pay. People make it, he takes it. After eight years of this Prime Minister, housing costs have doubled. They have even tripled in Montreal, the city the Prime Minister represents in the House of Commons. When the federal government prints money, causing widespread inflation, and funds local bureaucracies to prevent construction, adding to demand while squeezing supply, that causes a crisis. For the first time in Canadian history, young people cannot even dream of being able to buy a home. It now takes 25 years to save up enough money for a down payment in Toronto. Before this Prime Minister, people could pay off their entire mortgage in 25 years. After eight years of this Prime Minister, with the Bloc's support, people are living in tents in almost every major city in this country. Homeless people are trying to survive in tent cities and on the streets. We have not seen this kind of thing since the Great Depression.
What is the Bloc Québécois doing? Bloc members vote for every single one of this Prime Minister's economic policies. They voted to raise the tax on gas by 17¢ a litre over the next few years. They voted in favour of all the government's spending. The Bloc Québécois gave the green light to all of the estimates, where discretionary money is allocated by the House of Commons. It is also interesting to note that, generally speaking, those expenditures are centralized. The money is spent in Ottawa, by Ottawa, for Ottawa and is not part of the transfers to the provinces that are already established in legislation. We are not talking about health care spending or other transfers to the Quebec government. We are talking about operational and discretionary spending imposed by this out-of-control Prime Minister, which has led to a doubling of the national debt, the worst inflation in 40 years and massive waste.
Consider the ArriveCAN app, or arrive scam, as we call it. It should have cost $80,000. When the Prime Minister came to the House of Commons asking for tens of millions of dollars, we wondered what was happening. We had been told it would cost $80,000. Now the Prime Minister wanted another $24 million. It was bizarre. Naturally, we voted against it. However, the Bloc Québécois said no problem, it was just another $24 million, and they voted in favour. When the scandal was exposed by the Auditor General of Canada following the Conservative motion I moved in the House over a year ago, the Bloc Québécois members suddenly announced that they were outraged by the waste they had voted for. A journalist asked them why they had voted in favour of spending an extra $24 million on an app that should have cost $80,000. I will quote the Bloc Québécois whip. What he said is truly astounding:
“We're not going to scrutinize everything the government spends. We're just going to tell the government, ‘Go ahead, spend the money’.”
What is the point of the Bloc? Its only purpose is to encourage the government to take Quebeckers' money, spend it as it sees fit and waste it, while single mothers in Chambly, Saguenay and Trois‑Rivières struggle just to feed their kids. They have to pay taxes for this waste because the Bloc supports the government's spending.
That is why the common-sense Conservative Party is demanding all the details on this spending. The Auditor General said she could not even say how much was spent on arrive scam. She said it was at least $60 million, but there are documents missing. We must get hold of all these documents, which is why we are moving a motion in the House today demanding that the government produce all the documents associated with arrive scam, so we can see all the costs and the extent of the corruption. Seventy-six percent of contractors did no work at all. One company with four employees that is headquartered in the basement of a cottage received $250 million. It does no actual IT work, but it received IT contracts.
We need to know the truth.
The government is spending $21 billion on outside contractors. We are going to do away with that to save money and redistribute it to Canadians through lower taxes.
Our priorities are as follows: We are going to axe the tax, build the homes, fix the budget and stop the crime.
These are the Conservative Party's common-sense priorities, and we intend to keep our promises to everyone.
[English]
The NDP-Liberal is not worth the cost, the crime or the corruption. After eight years, his inflationary taxes and deficits have doubled the national debt, have driven inflation to 40-year highs and have driven two million people to food banks, a record-smashing number. After eight years of the NDP-Liberal Prime Minister, work does not pay. People make it, and he takes it.
After eight years of the , housing costs have doubled, mortgage payments have doubled, rent has doubled and down payments needed for an average home have doubled. After eight years of the NDP-Liberal Prime Minister, we have crime, chaos, drugs and disorder. He is not worth the cost, the crime or the corruption.
Nothing could be more emblematic of this waste than the arrive scam app, an app that was supposed to cost $80,000 but went up to at least $60 million. What did the NDP do when it found out that the needed more money for his app? It voted for that money. Even though it knew full well that the app was supposed to cost $80,000, it voted for at least $24 million additional dollars for an app that did not work. About 76% of the contractors did no actual work. The prime contractor got IT contracts even though it does no IT work, and it is headquartered in the basement of a cottage. That is part of a $21-billion boom in outsourcing by the government, a 100% increase in external consultants that costs $1,400 for every single Canadian family, which are federal taxes for consultants: $1,400.
Today, we call for all the details on arrive scam to be released. The Auditor General says she does not know how much was spent. It was at least $60 million. That is why we want the government to be obliged by the House to release all the documents, all the costs and to tell the truth. We want to know everybody who got rich through this corruption and how much Canadians actually had to pay for.
We are going to get rid of that app. We are going to cut back on outside consultants. We are going to cap spending, cut waste, and balance the budget to bring down inflation and interest rates, because our common-sense priorities are to axe the tax, build the homes, fix the budget and stop the crime.
It is common sense. Let us bring it home.
:
Mr. Speaker, today we are introducing a motion for debate in the House. This motion invites all sitting members from all parties, the 338 members of the House of Commons, to do some serious soul-searching.
Let us think back to the pandemic. Let us think back to the report that the Parliamentary Budget Officer released after the pandemic. He said that there had been $500 billion in COVID-specific spending, but he could not explain where $200 billion of it had gone. In the report, he says that, although spending was needed during the pandemic, there were amazingly few controls. This first report highlighted something very important. He was unable to explain $200 billion in spending. We may now even be able to see that some of the remaining $300 billion in spending was a bit fishy.
Another very important person involved in scrutinizing what happens to public funds is the Auditor General of Canada. Last year, the Conservative Party asked the House to vote. In November 2022, the Auditor General was asked to investigate ArriveCAN. ArriveCAN seemed a little strange from the start. It is a tool intended to track people's movements and obtain information on their vaccination status. In theory, it should not have cost much. However, we eventually became aware that something was wrong. It was costing a lot of money to create something that should not have been all that complicated. When certain information was brought to light, particularly concerning contracts with some odd people, it was decided that an investigation was in order.
The Auditor General did her job. She spent almost a year and a half trying to get answers. Let us put ourselves in the shoes of Canada’s Auditor General, who is appointed to work independently to verify and examine everything concerning the administration of public funds in relation to a particular file. She released her report two weeks ago, saying she was discouraged and was unable to carry out her work. From what she could see, at least $60 million was spent on this app, but it could have been more, because she could not find the supporting documentation. She could not find the contracts. When she did find an invoice, there were no details. It simply listed an amount of a few million dollars, and the cheque was sent out. She was really depressed to see how public funds were handled in this file.
In addition to the Auditor General, the procurement ombud did his own analysis, and our motion today mentions that too. He released a report a week or two ago, stating that 76% of the companies involved in the ArriveCAN file had performed no work. That means that $45 million was paid to people who did not even do any work. It is one scandal after another. When the Auditor General's report was released, I said it was the tip of the iceberg. I was sure more would be found and that this was not over.
Today, we want to shed light specifically on ArriveCAN. We have a great deal of information showing that there was outright corruption. At what level was the corruption happening? Who did it? How did they do it? We do not know, but we want to know. That is why we need to get to the bottom of this matter. I expect everyone in the House to support the motion that the Conservative Party is putting forward today. There is nothing remotely political about the Conservative Party's motion. It is a motion containing three specific points with specific queries about documents. This is simply an effort to shed light on the matter, so that the House can get the documents and information necessary to understand what went on in with ArriveCAN.
Last week, I sat on the Standing Committee on Public Accounts. The Auditor General was there. The deputy minister of procurement and the assistant deputy minister of departmental oversight also attended. I asked the latter, whose office is in charge of oversight, a question concerning ArriveCAN, and she did not know what to say. She started giving me a vague answer. I told her that I did not want a written answer that did not mean anything. I wanted a real answer. I asked a question, which appears in the record of the meeting. I asked her if, when she heard about this issue a year and a half ago, everyone in her office started banging their heads against the wall wondering what was going on.
We could see that no one really knew what was going on. Another thing to take into account is that there are people in offices who have specific oversight functions, but still do not know what is going on or, in any case, do not appear to know or do not want to know. I do not know what to make of all this. The point is that the federal government’s overall management of public funds is troubling. As I mentioned earlier, this is just the tip of the iceberg.
Let us keep in mind that the Parliamentary Budget Officer did not even know where $200 billion of the budget deficit had gone. We are now dealing with the ArriveCAN scandal, an app that cost $60 million when it should have cost $80,000. There are a lot of questions about government spending in general.
We also learned other very important facts. Minh Doan, the Prime Minister’s chief information officer at the Information, Science and Technology Branch, apparently deleted tens of thousands of emails concerning ArriveCAN. Why would he have deleted tens of thousands of emails documenting discussions between the people who were managing ArriveCAN if there was nothing to hide? That is another problem we have to solve. That is one of the reasons why the House of Commons needs to examine this issue in depth.
This morning we learned something else about the member for Québec, the current . During COVID-19, he was the president of the Treasury Board and therefore responsible for issuing contract management directives. I even asked him some questions at the time at the Standing Committee on Government Operations and Estimates about contract management. The minister did not seem to know how to answer. He often offloaded questions to his deputy minister. Since last summer's cabinet shuffle, he is now the Minister of Public Services and Procurement. According to La Presse, the minister's briefing book contained some sensitive items. The minister was told to pay attention to the shipbuilding strategy with Davie, the F-35 file and other issues. However, there were no notes about ArriveCAN. At the time, the Auditor General was conducting an investigation into a matter related to the procurement of federal government contracts. The ArriveCAN file was not even part of the minister's briefing. He was not even told to pay attention to it or that it was a sensitive issue. That is another question that needs to be explored. Why is it that when someone leads a department, they do not get any notes on a file that is being investigated by the Auditor General? There are so many questions, which is why our motion is very clear.
I will close by referring to the mandate letter issued to the member for Québec when he was president of the Treasury Board. In the mandate letter, the clearly states:
I also expect us to continue to raise the bar on openness, effectiveness and transparency in government. This means a government that is open by default. It means better digital capacity and services for Canadians. It means a strong and resilient public service. It also means humility and continuing to acknowledge mistakes when we make them.
That last sentence is what I would like to hear from the government. I would like it to acknowledge that it made mistakes. Since the tabling of the Auditor General's report, we have yet to hear the government express a modicum of regret. On the contrary, it tries to put it off, saying it will do better in the future. These mandate letters are useless because all we see is scandals and the government does not seem to want acknowledge the truth.
:
Mr. Speaker, I would like to begin by taking a moment to state that this government expects all public servants to act in the manner that represents the values and ethics code for the public service, including the obligation to serve public interests under the law.
I can also tell members that the CBSA is comprised of dedicated and talented employees who are united in this effort to improve processes and maintain Canadians' confidence and trust as they continue to deliver on their important mandate.
I would like to extend my thanks to the Auditor General and the procurement ombud along with their respective teams. They undertook a tremendous project to dig deep into the complex procurement activities as it unfolded for the development of the ArriveCAN app. Their efforts are not wasted, as they are shedding light on an important issue that has a widespread impact across government. Both have pointed to significant gaps and shortcomings in the procurement processes, record keeping, roles and controls at the CBSA. The agency has assured the government that these recommendations, as set out in both reports, will serve as goal posts to addressing the gaps and concerns raised.
The CBSA has accepted all the recommendations and has already started implementing action plans in response to the recommendations set out in the reports. These plans reflect the work of the CBSA that it has already undertaken to date and the work it will be doing moving forward to ensure that all of its procurement actions are aligned with policies and processes, that the CBSA continues to operate transparently, that it has stronger regard for the value for money when outsourcing work and that all employees operate in a manner consistent with the CBSA code of conduct and public sector values and ethics.
Most notably, the CBSA has so far created the executive procurement review committee to approve contracts and task authorizations. This is providing more oversight on the contracting activities. Second, it will require employees to disclose interactions with potential vendors, which will increase transparency. Third, the CBSA has increased the capacity of its procurement group both to oversee procurement activities and establish a centre of expertise. It will act as a single window to help employees if they have questions or do not understand their authorities and obligations.
These examples are just a starting point of the CBSA, which continues to implement the action plans in response to the Auditor General's recommendations.
The CBSA recognizes that maintaining the trust of Canadians is paramount and will endeavour to do so by improving its internal management and ensuring that public policies are followed. Canadians deserve to have trust in their institutions and in the public service.
The CBSA is working with Public Services and Procurement Canada to improve its procurement practices to ensure strengthened controls, oversight and stewardship over contracting. So far, these discussions have led to its new procurement improvement plan. The agency already started to strengthen its processes and controls related to procurement planning, contract administration, corporate culture and proactive monitoring to reduce the risk of fraud, and more is to be done.
The CBSA is responding quickly to move forward in the right direction. One of the steps taken involved launching an internal audit of all contracting at the agency. It has also increased its oversight over the issuing of contracts and task authorizations. The CBSA is also now requiring employees with contracting authority to retake procurement certification courses.
Although these are simple steps, they will certainly improve the stewardship of contract administration within the agency, while still providing critical services to Canadians across the country.
I would like to use my time to also addressed concerns that have been raised around the value-for-money aspect of ArriveCAN, with the acknowledgement that the gaps in policies and controls existed in the procurement process. We do have to remember that the paper system was slow and costly and was not meeting the information requirements of public health officials. While we cannot disregard the very legitimate concerns raised in the Auditor General and procurement ombud reports over these allegations, there are still some positive aspects of the ArriveCAN app.
Last week, the AG appeared before the Standing Committee on Public Accounts and said that she does not think the value should be quantified. She acknowledged that there was some value in digitizing the old paper system at the border. The OAG's 2021 report on border measures covered this as well. I will quote from the AG's appearance last week.
I would add that there is also an enduring value to this application, as CBSA has now springboarded off what was done here to automate the border, something they had been working on before the pandemic. They used this as a sort of springboard to go there. There is some sort of enduring value left, post its use during the pandemic.
On this side of the aisle, we can agree that things could have unfolded a lot better. I do note that the pandemic context is an incredible management challenge, but this is absolutely no excuse to throw policy and procedure out the window. What we have learned in that regard is unacceptable, and I am glad to see that CBSA is taking that very seriously.
Across government, departments were called upon to be fast and flexible in providing services to Canadians, but this bias to action should not have come at the price of sound stewardship. Then, as now, public servants need to remain focused on documenting decisions and taking care of basic management fundamentals.
I can report that the CBSA has already made changes to address this, and we will take further action to ensure management practices are aligned with policies and deliver value for money going forward.
In order to avoid restrictive requests for proposals, the agency's new executive procurement review committee will look at the mandatory criteria in contracts to ensure that they are not overly restrictive. In addition, contracts above $1 million need to be approved by the CBSA's executive committee to ensure they do not undermine the fairness and openness of the bid solicitation process.
The CBSA is reinforcing government spending requirements and has already curbed its use of management consultants. The CBSA will continue to adjust our procurement governance and supporting documents so that they act as a quality control process to ensure mandatory criteria are not overly restrictive and do not undermine the fairness and openness of the bid solicitation process.
A culture change in procurement is happening and is necessary. I think that all members can agree that federal procurement is difficult to understand, but we can all understand that it needs to be done properly.
Again, we would like to thank the Auditor General and the procurement ombud for their work. These reports, along with the work of various standing committee studies on this matter mean that Canadians can rest assured that procurement in Canada is being examined and the results should be a positive net gain for taxpayers as we think of what kind of work we outsource and how.
I have acknowledged that we need to get to the bottom of what happened in this case, and we can also ensure that we tighten procedures to prevent the procurement process from any wrongdoing in the future. I think all parliamentarians should be concerned about the details of this situation.
However, after listening to several speeches already in this House today, I do question the sincerity of the Conservative Party, which will say anything to grab power. Their actions do not actually match the tough talk that they often speak in this place. With my remaining time, I would like to demonstrate to Canadians that while we are deeply committed to fixing the procurement process, the tough talk of Conservative members in this place is all talk and not actually based in reality. I think Canadians need to get a picture of how deep this procurement issue goes.
In questions, my hon. colleagues have raised the fact that GC Strategies, which is at the heart of this issue, went by a different name previously, or merged from, Coredal Systems Consulting Inc.. With the remainder of my time, I would like to read into the record all of the contracts issued by the previous Conservative government using this very same company that it now claims to be Liberal insiders.
They include the following: April 1, 2015, total value over $541,000 for technology consultants; March 3, 2014, over $2.3 million for consultants and a programmer-analyst for Transport Canada while the served as parliamentary secretary; March 26, 2013, over $1.8 million for Transport Canada; November 28, 2012, over $287,000 for management consulting; October 29, 2012, over $968,000 for telecom consultants; October 17, 2012, over $140,000 for other professional services not elsewhere specified; October 17, 2012, over $233,000 for other professional services not elsewhere specified; March 29, 2012, over $213,000 for management consulting; March 1, 2012, $675,000 for information technology consultants; August 9, 2011, over $24,000 for training consultants.
It continues: July 29, 2011, over $24,000 for a sole-source contract for IT consultants at the same company that the Conservatives claim does not do any IT work as I am reading out all of the IT contracts that they approved; July 29, 2011, over $24,000 for sole-source contracts for Transport Canada; May 24, 2011, over $129,000 for Public Works and Government Services, for a procurement tool; and October 26, 2010, over $21,000 for management consulting at Fisheries and Oceans.
Although this issue is deeply concerning, in regard to what happened here, we can see that the procurement issues are pervasive and it is why this review is absolutely necessary. It is why we committed to doing the work to fix the procurement process to put in better oversight and transparency. However, when Conservatives talk tough, Canadians should know that their actions are very different.
:
Mr. Speaker, we are gathered here today to discuss a Conservative Party opposition motion. While we expected to have another of many motions on the carbon tax, which does not apply in Quebec and represents less than 0.15% of inflation, it was a wonderful surprise to see that we were going to talk about something else. Honestly, that feels good.
Today's motion is on the ArriveCAN application, a matter that has been before the Standing Committee on Government Operations and Estimates for study since October 22 and for which I have the pleasure of reading every document that we receive. In fact, I have prepared a table of contents, and, so far, these documents represent 27 pages of table of contents. That will give members an idea. What is more, I have not even finished it all yet. I also want to point out that my hon. colleague from , who is also examining the ArriveCAN app at the Standing Committee on Public Accounts, is the next speaker. I will be sharing my time with her.
So far, we have met with 46 witnesses and received two briefs, as well as tens of thousands of pages of documents. Just to give members an idea, the table of contents so far is 27 pages long. Naturally, I have not read it all yet. Reading is one thing, analyzing is another. Connecting each piece of information to form a cohesive and coherent whole will take more than five minutes. It will take more than a 15-second sound bite on social media.
Why introduce this motion today if the subject is being studied in committee? Some of us may be wondering. This is one of the questions I will attempt to answer in my speech by giving an overview of the situation as we understand it so far. I will talk more about what ArriveCAN is and about what has happened since 2022, in other words, about what we have learned.
ArriveCAN is an app that travellers were obliged to use for declaring their vaccination status at customs. The first contracts for ArriveCAN date from 2017, long before the pandemic. The aim of these contracts was to create an app that would facilitate declarations at Canadian customs. The health aspect was added to the app in 2020. That is when everything appears to have started going off the rails.
How much was the app supposed to cost at first? So far, the answer appears to be $80,000. In 2022, it was to cost around $250,000, after a team of young programmers copied the app. The team told us in committee that copying an app is much easier than starting from scratch but that, even if they had created it from scratch, applying the security codes and updates, it would not have cost $54 million, the number that was being bandied about at the time. We are now at a cost of $59.5 million.
After that, we found out more about ArriveCAN and its cost. Our investigation revealed that consulting firms had been given hefty contracts. What did these consultants do? Essentially, they turned on their computer, accessed LinkedIn to find specialists and listed them along with their daily fees. Incidentally, the consultants invoiced between $1,000 and $1,500 a day for specialists.
However, we found out through the ombud that 76% of the people on the list of IT specialists submitted by GC Strategies never worked on the app. Other specialists, who were not on the original list, and with who knows what qualifications, did the work. I hope people are following me. That is essentially what the consulting firms did. At the end of the day, they invoiced 15% to 30% to submit names. In short, 15% to 30% of the daily fees invoiced were for specialists who did not end up working on the app.
That reminds me. Remember the two guys who set up a company and, within seven days, had a $237-million contract for 10,000 ventilators? They took that contract and gave it to Baylis Medical, a company owned by a Liberal MP who lost his seat in the 2019 election. If we apply that same percentage, 15%, which is the minimum, that means those two guys pocketed $40 million seven days after starting their business. That sounds a lot like GC Strategies, but in this case, things started well before the pandemic. Things started in 2015 for GC Strategies and in 2007 for Coredal Systems Consulting.
That is the Canadian dream, being a consultant and having an extraordinary ability to find people on LinkedIn. There are similarities there. People set up a business in their basement, take a quick look around and end up with millions of dollars in their pocket at the end of the day. This is all strangely reminiscent of a system that we need to study, analyze and investigate. GC Strategies is not the first of its kind. Its predecessors include companies such as Coredal Systems Consulting and FTI Professional Grade. This is a big deal. The Auditor General says she has never seen worse record-keeping than in the ArriveCAN books. That is a big deal.
Today's motion is about accountability. Yes, the opposition certainly has a role to play in drawing attention to information like that. However, it is not up to Julie Vignola alone, or the member for or a small research team to sift through tens of thousands of pages to find every item related to ArriveCAN. At some point, accountability is also the government's responsibility. It knows where it invested taxpayers' money.
Speaking of taxes, it would be nice if companies hired by the government did not use tax havens, which may be the case for one company that got millions through the ArriveCAN contract. I would encourage everyone to read today's La Presse.
We are being criticized for voting in favour of ArriveCAN. I will point out the estimates in question. ArriveCAN is mentioned in the supplementary estimates (B), 2021-22, on pages pages 2-2 and 2-82. ArriveCAN is also mentioned in the supplementary estimates (C), 2021-22, on page 1-19.
These budgets were voted on as a block. If we had voted against them, like the Conservative Party members did, we would have been voting against the construction and management of indigenous women's shelters, against financial support for festivals and tourism, against community revitalization, against financial support for mental health and against support for Afghan nationals, support that the member for was screaming for in the House. We also would have been voting against the procurement of PPE.
There is a problem. We agree with the motion, but we also need to put the CBSA under third-party management, because whistle-blowers have been warning of serious problems for quite some time, particularly regarding passports, and members of both the Conservative Party and the Liberal Party have turned a blind eye to these problems. It is time to put this agency under administrative supervision. We will vote yes, but we need to go even further.
:
Mr. Speaker, nearly two weeks ago, the Auditor General released a scathing report regarding the government's handling of the ArriveCAN app. The Auditor General said that the management of the app was one of the worst examples she has seen in her career.
Now we are learning that the ArriveCAN file is just the tip of the iceberg. The purpose of the app was for people to register travel with the CBSA in the context of COVID‑19. The app was supposed to cost $80,000. Another company said it would have cost about $250,000 to develop. We are talking about an app that cost only $12 million in France for a population of 70 million people. I could name other examples where this app cost far less in other countries. Unfortunately, in Canada, it cost nearly $60 million.
I mentioned the tip of the iceberg. The fact is, the Auditor General and her team could not even put an exact figure on the cost of the app. That is where the problem starts. That is the crux of the problem. It has to do with a procurement process that was completely disregarded. The Auditor General and the procurement ombud have come forward with some pretty serious allegations that Public Services and Procurement Canada and other departments simply did not follow what is supposed to be an exemplary procurement process worthy of a G7 country.
Here are a few examples. The average daily cost for this app was about $1,090, whereas it is usually around $675 for IT positions.
We already know that the companies that billed their services to the government billed nearly double what it should normally cost. Here are other examples.
In roughly 76% of applicable contracts, the human resources detailed in the winning bid did not do any work. In other words, huge contracts were signed that included resources who, at the end of the day, never did any work. We have an entire department that is supposed to do its job when it comes to the procurement process and is supposed to have processes that work and are followed. In both cases, that work was not done.
Here is another example: 18% of the invoices submitted by contractors that were audited by the Auditor General were not supported by adequate documentation to determine whether they were related to ArriveCAN. That is why, from the outset, I said that they did not even know how much ArriveCAN cost. It is inherently problematic. There is such a lack of documentation that one might think we were in a third world country. Having audited procurement processes in developing countries myself, I think that they have better procurement processes than we do. It is shameful.
There is a second level to this. Serious misconduct is suspected. In her report, the Auditor General indicated that she noted situations in which Canada Border Services Agency employees who were part of the ArriveCAN project had been invited to dinners and other activities by suppliers. There is no evidence that the perks that these public servants received were reported to their superior as they should have been.
That is something that we do as parliamentarians. If we receive a gift, we report it. We are closely scrutinized, and that is how it should be. Obviously, the top priority of public servants is to serve the public. Public servants know that, when they accept their position, they must serve the public to the best of their abilities. As a result, they must report any appearance of a conflict of interest. That is essential when a person enters the public service.
There has been a lot of talk about GC Strategies. Let us not forget that GC Strategies was known as Coredal Systems Consulting back in the Conservatives' day, and it too received contracts. However, we have also heard about another company called Dalian. According to what we learned this morning, the owner of Dalian—another company that received millions of dollars for the ArriveCAN app—has bank accounts in tax havens. No surprise there. Receiving that much money but providing little or no service certainly raises questions about misconduct. That is where things stand now. We must let the RCMP do their job.
We also know that the owners of GC Strategies have numbered companies. I just wanted to share that. Numbered companies allow for a lot of leeway. Again, we will let law enforcement agencies investigate that. There are some serious questions about misconduct here.
One thing is certain, companies like Dalian and GC Strategies had contracts under the Conservatives. Whether we are talking about GC Strategies or Coredal Systems Consulting, these companies had contracts. However, there is another thing. The contracts with these consultants, these two companies in particular, simply skyrocketed starting in 2017. The increase started in 2016 or 2017. Companies such as Dalian received hundreds of contracts from the federal government. Where did the federal government, the Liberal government, lose complete control of its public service, its public servants, its departments? Was it a lack of leadership? Was it recklessness? That is what we are trying to understand in this story. Again, ArriveCAN is just the tip of the iceberg.
The number of contracts awarded on a non-competitive basis has also skyrocketed. Under this government, the problem is systemic. Expertise is being lost. On the one hand, we have the Conservatives. During their reign, they eliminated positions, cut public services, reduced the number of public servants and hobbled public servants' and departments' internal expertise. On the other, we have a Liberal government and its slew of middle managers. Many of those jobs were cut. They may no longer have the internal expertise, but they want to do development. They are zooming around all over the place trying to do development. They end up relying on external consultants like Dalian and GC Strategies to do the work that the government should be doing. The number of these contracts is growing by leaps and bounds.
We are not just talking about competitive procurement here. We are talking about the awarding of a huge number of non-competitive contracts. In 2023 alone, 27% of contracts were awarded non-competitively. Do members know in which department that happened? It was at Public Services and Procurement Canada, the department that is supposed to set the example and that is supposed to have processes and ensure that they are followed.
Such was not the case since 27% of the contracts awarded by Public Services and Procurement Canada were awarded non-competitively. How then can we guarantee that the government is providing proper services for every dollar spent? Let us remember that we are talking about taxpayers' money. Perhaps some people are so far up their ivory tower that they forget that they are managing taxpayers' money. What is more, when contracts are awarded non-competitively, there is no guarantee that they will be effective or managed properly. We see that Public Services and Procurement Canada did not even follow up on those contracts, and it is not the only one. The CBSA also has a lot to account for. I have given examples of poorly monitored procurement and talked about how serious misconduct is suspected. Basically ArriveCAN is just the tip of the iceberg.
The Bloc Québécois will support this motion. However, as my colleague from said, this motion may not go far enough. Our leader was the first to call for a public inquiry. The Canada Border Services Agency may be the worst, but we do not need to look far to see that quite a few problems exist elsewhere. Perhaps it should be put under administrative supervision. In any case, a lot more needs to be done to get to the bottom of this, because there really is a widespread problem. We saw it with the spending on McKinsey. Ultimately, McKinsey was not necessarily the problem. The Liberal government may have lost full control of the departments, leading it to become dependent on consulting firms to the point where it has now lost all control. Part of the blame lies with the Conservative government's irresponsible actions, including cuts to the public service, which created a need for outside expertise.
To conclude, Quebeckers can see that they will have an irresponsible government if the Conservatives come to power. They also see that the Liberals are an irresponsible government that is incapable of managing its departments. Fortunately, we have other options in Quebec. We have the best option, which is to leave and govern ourselves, because, strangely enough, we do not hear of many cases like ArriveCAN in Quebec. In fact, Quebec's app cost a fairly reasonable amount, about $10 million, which is not the case for Canada's app. I would like to end on that note and on the fact that, in Quebec, we are far better at managing our own affairs. If we have to choose between the plague and cholera, we prefer our country, by far.
:
Mr. Speaker, it is an honour to rise, and I will be sharing my time with the member for .
The question of how public money is spent or misspent is a fundamental question of an obligation for parliamentarians, because the Canadian people do not need to pay attention to everything that happens in Parliament. However, they need to know that there is accountability and that we respect their hard-working money being spent properly and through the right channels.
I have many years of experience in the House dealing with all the smut and corruption files that have come along. I was elected in my first year as the Liberal government was telling us that Jean Chrétien's golf balls were going to keep the country together. Fortunately, the Canadian people did not believe that. That was the first scandal I witnessed. I have lost track of all the scandals.
We can take misspending and put it into various categories. There are simply the tawdry ones, like with Bev Oda, who seemed to rack up as many bills as possible every time she travelled until people finally became fed up. There was the issue with Mike Duffy and Nigel Wright, where Mike Duffy was claiming all kinds of outrageous claims because he was a bagman and raised money for the Conservatives. We were presented with this bizarre case that it was okay to offer a secret bribe, but it was a problem to receive the bribe.
Those scandals did not just belong to the Conservatives. There was Mac Harb, a Liberal, who had this amazing grifter scheme. He was not eligible for travel, so he bought this dodgy little broken down cottage just 100 kilometres outside of Ottawa because if he lived 100 kilometres outside of Ottawa, he could hit up the taxpayer for all kinds of travel, even though, I was told, there was not even running water at that cottage. Mac Harb had to pay back $231,000.
People deserve to be outraged by that abuse, and it raised questions in the Senate of where the accountability is to make sure that the people who are there are doing their jobs. I remember Tony Clement and the $50 million that was taken out of border funds so that he could buy sunken boats and build a fake lake in Muskoka. That was an abusive process. It was not criminal; it was an abusive process.
There was the issue with Arthur Porter, which was one of the more concerning scandals I have witnessed over the years. Stephen Harper appointed him as head of the Canadian Security Intelligence Service and made him a privy councillor. We then, of course, found out he was involved in what CBC said was “the biggest fraud investigation in Canadian history”, and he ended up dying in Panama in a jail.
Those are elements of criminality, “griftership”, tawdriness and of people just misusing the public funds.
The ArriveCAN thing needs to be put in perspective of the time, and then analyze it from there. When we were hit with the pandemic, we were dealing with a completely unknown crisis that none of us had faced, and there was certainly a need to get a response out the door quickly.
Who did the best job at that? It was our public servants. They basically spent that Easter weekend in 2020 creating a program to get the CERB dollars out to people who were not able to work and to keep them going. It was the Public Service who did good, amazing work during that time.
However, there were a number of scandals that came up during that period, and ArriveCAN fits into that because it is a question of the lack of oversight and accountability. Certainly, Canadians deserve to know how a contract worth $59.5 million, divided up through 32 companies, for a program that did not work was allowed to go ahead. We ask ourselves how that was possible.
I would like to share with my colleagues some of the recommendations that came out of the Standing Committee on Access to Information, Privacy and Ethics, which looked into some of the other elements. We looked at Baylis Medical, at Palantir and at the Kielberger brothers. At the time, again, the government wanted to get a youth program out. There was $500 million to $940 million set aside for the Kielberger operation without competition and without very clear oversight. What the committee found was that the incredible access Marc and Craig Kielberger had into the inner workings of government gave them an advantage no one else had.
I would encourage any of my colleagues to read the Ethics Commissioner report on the former finance minister, Bill Morneau. It makes for a pretty shocking reading that these guys had an all-access pass into the corridors of the Liberal government and were not even registered to lobby. That certainly was a major factor in bringing down Mr. Morneau.
I want to raise this because if we have these scandals, we need to learn from them. We need to learn how money was misspent. We need to learn why there was no oversight, so that this is not repeated. Otherwise we become a laughingstock of repetition of failure from insiders, from misuse of public funds and from contracting out.
With respect to the contracting out that was to be done with the WE group, I am going to read what the all-party committee said. This is not my opinion but that of all of the political parties that participated. It reported this back to Parliament:
The Committee was unable to find any due diligence reports that actually tested the credibility of the claims made by the WE Charity. This group had never undertaken a project close to this magnitude and it remains unclear whether they had the means to ensure that students across the country could be put to work with credible results.
It was going to be given $500 million initially, and there were no due diligence reports that we could find anywhere. Then we found out that the money was going to be funnelled to a shell company initially set up to deal with some of its incredible real estate holdings. How is it possible that the Government of Canada would transfer between $500 million and $940 million to a shell company? Who was taking the enormous risk then? It was the Canadian people. I am going to read from the all-party committee report again:
The Committee is of the view that the decision of the Liberal government of Canada to sign a contract worth over $500 million with a shell company “WE Charity Foundation” is deeply troubling. The WE group stated they used the shell company to limit their liability. In reality, this procedure had the potential to put a huge investment of taxpayers funds at risk because the deal was with a shell company with no assets.
How does a G7 country sign on to something that concerning?
I am raising this because of the whole thing about ArriveCAN and the Auditor General's not being able to find anything on how the money was spent. One of the most disturbing factors is that after 10 months of study, we had to report to Parliament that we had no idea how the finances of the supposed children's charity worked. We could not tell the Canadian people who controlled its multitude of corporations. We did not even know all the companies that it controlled. We could not tell the difference between its so-called charity work and its for-profit work, or tell what its ownership structure was, yet the government, without doing due diligence, was going to sign over between $500 million and $940 million.
The report states:
The Committee notes that over the 10 months of its study, it was unable to get a clear picture of the financial structure of the WE group. We were unable to ascertain a clear division between how monies flowed through the charitable wing and their for-profit operations. We were also denied information on the ownership structure of their multitude of side companies. If the government of Canada is to sign future contracts or contribution agreements with WE Charity, its affiliates or subsidiaries, such clarifications must be required.
I raise that because we are looking at a very similar thing that happened with ArriveCAN. Where was the oversight?
This is the other question I am going to end on. We spent 10 months trying to get the CFO of WE to testify, just to tell us what was happening. We were told not only that he was on medical leave but also that he had a brain aneurism that, if we asked him questions, might cause his death. Certainly nobody in Parliament was going to wish that someone die under the pressure, but the WE group could not come up with anybody else who could explain its very complex financial structure.
On May 15, 2021, we received a letter from Mr. Li saying that he was too sick, had not been doing any work and was completely uninvolved, yet we found that in that period, in the state of California, there was a registration renewal in November 2020 on which he signed off as CFO. There was a New York state filing on which he signed off as CFO, an Internal Revenue Service report in 2020 and a Washington State report. All of these were signed off on by Victor Li, yet our committee was told that he was so fragile and sick that he could not even read documents. We were not in a position to do a criminal investigation, but we had to report back to Parliament that there had been a major failure of fundamental accountability.
Has the government learned lessons from what happened with the WE brothers, or do we have to repeat these tawdry, dumbed-down abuses of public funds because the accountability mechanisms that should have been there were ignored and the Canadian taxpayer is on the hook? I will be here all week.
:
Mr. Speaker, it is an honour and a privilege to rise in support of this motion today.
I am going to speak to the broader issue of outsourcing and what New Democrats have been trying to do from the beginning in terms of revealing and bringing an end to the rampant outsourcing to highly paid, external, for-profit consulting firms that are making money hand over fist. Earlier I talked about how, under the former Conservative government, we saw the number of highly paid consultants double. Under the Liberal government it has gone up 546% to the big corporations, to the six highly paid consultant firms.
What we want to do is stop these profits and the economic leakage happening in our country, and bring that work back to the public service. We saw the Conservatives with their Phoenix pay system that was supposed to save taxpayers $80 million. It has cost us over $3.5 billion. Talk about a failure. I find it laughable when Conservatives are up in the polls and they want to force an election. They want us to go from one corporate-controlled party to another. That is not good enough. What we need to do is actually fix the problem.
There is waste worth billions of dollars. It hurts the public service. It also hurts the morale in the public service when it sees a company like GC Strategies, which is two guys who do not have an office or staff but probably have two bar stools at a local bar dedicated to them, getting $59 million in government contracts. What we learned at government operations committee is that they get a commission between 15% and 30%; let us call it 20%. These two guys made $11 million just in commissions. Neither of them is an IT specialist. They are headhunters. This is easily a job that should be brought in-house and not done by external consultants.
We know that ArriveCAN is just the tip of the iceberg. We heard the parliamentary secretary say that this is deeply concerning. It is not just deeply concerning; it is absolutely outrageous, and it needs to end.
I want to compare the over $21 billion in outsourcing, and by the way, the Liberal government wants to make us feel good by cutting 15% of outsourcing. It has gone up 546%, but the Liberals are going to cut it by 15%. Does that gives everybody at home a lot of comfort? I do not think so. Let us think about what the $21 billion in outsourcing could have done for building hospitals or schools, or providing a pharmacare plan that is going to cost $10 billion or a guaranteed livable income for seniors and people living on disability, the most marginalized people in our society.
With ArriveCAN, we saw what was an $80,000 app skyrocket out of control. As my colleague, the member for cited, money needed to be spent in terms of the emergency response to COVID. We absolutely support that, but not the outrageous runaway train. We put forward motions and ideas. We tried to actually look at the outsourcing procurement problem. We put forward a motion at the government operations committee to ask the Auditor General to look not just at ArriveCAN but also at all outsourcing and buy-and-sell decisions by the Government of Canada.
Initially the Conservatives were hesitant to support my motion, but they did. Then they took the motion and brought it to the House on an opposition day to call on the Auditor General to look at ArriveCAN. However, we need to go bigger than that. I supported that and am glad I could work with the Conservatives on it.
Let us face it: The Conservatives gutted the public service. This is when outsourcing started. Michael Wernick, the former Privy Council chair, showed up at the government operations committee. He cited that it was cuts in leadership and training that led to the start of the outsourcing that happened under the former Conservative government. Those were critical, huge cuts. They were very costly, as we can see now as the government goes to outside consultants to provide that leadership. I will talk a little about that.
We put a question on the Order Paper to look at the government's spending on outsourcing consultants. One instance we found was that Natural Resources Canada spent over $600,000 to advise the government on how to cut outside consultants. It used an outside consultant to give it advice to cut outside consultants. One cannot make this stuff up; it is that outrageous. This is what we are seeing.
Let us talk about the history of outside consulting and the need to invest in public servants. We saw the previous Conservative government privatize the Phoenix pay system that was brought in. It was supposed to save $80 million a year. It has actually cost us $3.5 billion. The ArriveCAN scandal pales in comparison to what has happened with the Phoenix pay system.
What we keep seeing are continued sole-sourcing structures of outsourcing, which ensure that companies like GC Strategies are the only ones that can properly bid. We heard at committee about GC Strategies actually altering résumés to help companies qualify and get task authorizations. These are security clearances that are pretty critical and important to the safety of our country. We are also concerned about how they misused indigenous set-asides. They hired a company on an indigenous set-aside that was not indigenous. The owners of that company were embarrassed when they found out, because they believe in reconciliation. They believe that money that is dedicated for indigenous procurement should go to indigenous companies.
We want to get to the bottom of this. We talked about outsourcing doubling under the previous Conservative government. It has more than quadrupled under the current government. We are literally seeing the corporate-controlled parties let the foxes run the henhouse. Today we see the Liberals and Conservatives fighting over who hired whom, who started the whole mess with consulting, who spent more on the same consultants. It is a big problem.
What we need to do is to stop the layering of commissions. We need to take action and solve this problem. There should not be a layering of commissions. We learned that GC Strategies got a contract and then subbed it out to another contractor, who subbed it out again. We saw cases in which Dalian and Coradix, another two-person outfit that was making millions of dollars, subbed out to GC Strategies, which then subbed out to somebody else. They took commissions along the way. We heard from the deputy minister that there is no limit on commissions. We could see that commissions could be 60% to 70% of a bid. This is an economic leakage that is out of control, and it is a self-perpetuating cycle in terms of outsourcing that reduces public service capacity.
I want to say that that layering is like the biggest pyramid scheme I have ever seen. Someone gets a contract, subs it out and takes a cut. Then they sub it out to the next person. They are all friends. These companies with two staff and no offices are something that seems to be coming up, and that was just with CBSA. We need to look beyond. We wanted to look at Deloitte, for example. It went from receiving $11 million in contracts in 2015 to $275 million. We wanted to look at PricewaterhouseCoopers, which went from $20 million to $115 million. This is just since 2015.
I put forward a motion to expand the outsourcing study to include the big six. Madam Speaker, you should have seen the room when I put forward that motion. Everybody ran to their phones. The corporate-controlled parties were checking in with their head offices, making sure it was okay to support this motion, and they delayed it.
They delayed the vote on it, and then the Conservatives decided to delay it one more time. It took three meetings before they supported it. The reason they supported it was that they knew that it would never see the floor. We are close to the anniversary of expanding that motion, and we have not gotten to the bigger study. I find it kind of odd, given that a former Liberal cabinet minister, Pierre Pettigrew, is a managing director at Deloitte, and a former leadership contender in the Conservative Party, Peter MacKay, is a managing director at Deloitte. No kidding that they do not want to study it and put it under the microscope, and they do not want the Auditor General taking a look and doing a deep dive. These big corporations are just like the smaller ones, like GC Strategies. They get the bid, sub it out and take a cut. They are not doing a lot of the work.
We want to fix this. We will keep fighting for that. We want to put a cap on commissions. We want integrity in procurement, and that includes making sure that all bids are competitive, instead of this sole-sourced business. We want to end and prevent the misconduct that is taking place. We want to stop our public dollars from turning into private profits. In terms of looking at indigenous set-asides, they actually need to go to businesses that are indigenous-owned and indigenous-operated and delivering services.
The New Democrats are here to actually bring solutions and try to fix this problem, so that we can get the support to Canadians who are struggling right now.
:
Madam Speaker, I will be splitting my time with the member for .
The arrive scam boondoggle has rightly put the government’s mismanagement of taxpayer dollars in the spotlight. At one point everyone in the government wanted to be associated with the ArriveCAN app, touting it as one of the greatest things a government had ever accomplished. Now, with the Auditor General's report, nobody wants to take accountability for this mess, and it is no wonder.
As we have discovered, we have an application that started out with a price tag of $80,000 that ballooned to $60 million and counting. It now appears, according to the Auditor General, that we will never know the true cost of this application, given the lack of information available for her to do a proper audit. We can add to this the procurement ombud's report that found that 76% of all resources proposed by the contractors to do the work in fact did not. Finally, a two-person company that did no actual IT work was paid almost $20 million.
Liberal politicians who once championed the app are now backing away from it, pointing the finger at the public service, while senior public servants are all pointing their fingers at each other.
When the Conservatives introduced the study of ArriveCAN in committee, we knew that there was more to the story than what the government was telling. That is why we introduced a motion in this place calling for the Auditor General to conduct a performance audit, including of the payments, contracts and subcontracts for all aspects of the ArriveCAN app. The audit confirmed our suspicions and went even further.
Just last week, we heard testimony in committee from two former CBSA employees, who have been suspended without pay even though they now work in different departments. These two former employees were highly critical of the actions of senior bureaucrats at CBSA, including the president, who they allege was attempting to mislead the committee and withhold information.
When parliamentarians are confronted with evidence of reprisals and allegations of misconduct and an active cover-up, we cannot trust the ’s department to investigate itself. We know how these investigations end: Liberal insiders get off easy while others take the fall. We saw this clearly in the SNC-Lavalin case. SNC-Lavalin got off with a slap on the wrist, but Jody Wilson-Raybould was removed from cabinet and caucus, all for standing up for the rule of law on behalf of Canadians.
The is not interested in upholding the rule of law; he is interested in removing blame from himself and his buddies, pinning the blame on others and punishing them harshly.
Our study on ArriveCAN has uncovered large-scale misconduct across multiple government departments. The procurement ombud found widespread disregard for the rules of procurement by the Canada Border Services Agency, Public Services and Procurement Canada and the Public Health Agency of Canada. The Auditor General referred to the glaring lack of documentation as the worst she had ever seen. In her report and in testimony before committee, she stated several times that the pandemic was not an excuse for the lack of documentation and glaring mismanagement across the ArriveCAN contracts.
This glaring mismanagement is completely unacceptable, especially when taxpayers are on the hook for tens of millions of dollars. This boondoggle has led to Canadians overpaying for an app that sent thousands of Canadians unjustly into quarantine.
The Auditor General also confirmed at committee that the lack of documentation pointed to two possibilities: the first being that the documents never existed in the first place and that the government just was not doing its job in keeping track of taxpayer dollars; and the second being that the documents had been destroyed.
While this second possibility may seem far-fetched, it has been reported in the media that an IT employee at the CBSA has claimed that the former vice president and chief information officer of the CBSA deleted four years' worth of emails. This is extremely troubling and is outrageous, as one of my colleagues said.
One of the 's top bureaucrats has been accused of deleting four years' worth of emails from his time at the CBSA, particularly during the time of the ArriveCAN procurement. Now this bureaucrat, who has since been promoted to chief technology officer of Canada, is refusing to provide answers.
It is alarming to the Conservatives that senior members of the government's bureaucracy are being accused of lying to and misleading parliamentarians in committees and refusing to answer our questions. In addition to this, we have had to deal with constant Liberal filibustering at committee. The persistence of the Liberals to stall our study of the arrive scam makes us wonder what they have to hide.
The mismanagement of ArriveCAN is indicative of the way the NDP-Liberal government has been running the country over the last eight years. It has wasted taxpayer dollars, increasing its deficits to new heights each year. It has created a cost-of-living crisis, making it difficult for Canadians to put food on the table and a roof over their heads. It has failed to deliver for Canadians on every level, yet the Liberals refuse to take any responsibility for their failed policies and eight years of failed governance. However, Canadians know who is responsible.
While the cost of living continues to go up and the quality of life continues to go down for Canadians, the Liberals are afraid to face Canadians with what they have done to our country, and the New Democrats have simply lost their way. The NDP, once called the workers' party, has bargained away its responsibility as an opposition party and is now more focused on blindly supporting the Liberals than on stopping the damage it is inflicting on working-class Canadians. While it supports the disastrous overspending of the government, allowing it to do whatever it wants, the NDP's only demand is that the Liberals spend more.
With the emerging scandal around the arrive scam, the New Democrats have been feigning outrage at the Liberal government, but, as has been noted by the , they voted in favour of the arrive scam eight times. The New Democrats had their chance to stand against it, but did not. Now they are pretending to be shocked by all the money spent on the app.
The NDP presents itself as an opposition party, but this act is falling apart. Despite the New Democrats' best efforts to put on a show of holding the government to account, their actions are clear to all Canadians. By continuing to prop up the Liberals year after year, they have intertwined themselves with the Liberals so tightly that it is difficult to tell them apart. Canadians are not fooled by their faux outrage at their coalition partners. If they truly believe in their record, they will stop propping up the Liberal government and its failed policies, and allow Canadians to decide who they want to lead them forward.
It is important to remember that in the midst of the pandemic, the called an election in a thinly disguised last-ditch effort to recapture a majority government. Failing that, he was then able to fall back on his good friend, the , to give him the majority he so desperately needed. Canadians do not support the coalition government; they want change. Canadians want answers for the arrive scam. Canadians want to end this cover-up coalition.
In the face of the corrupt NDP-Liberal coalition, the Conservatives will continue to fight for accountability and against a waste of taxpayer dollars. After all, that is why we are also calling on the government to collect and recover all monies paid to ArriveCAN contractors and subcontractors who did not work on the ArriveCAN app, within 100 days of the adoption of this motion. We are also calling on the to table a report in the House showing that public funds have been reimbursed. This is the ultimate accountability that the government can demonstrate.
:
Madam Speaker, as chairman of the public accounts committee, I have the responsibility for coordinating the oversight of how federal programs and departments are managed by the Liberal government. Every day brings more evidence that the NDP-Liberal is just not up to the job.
Since my appointment as chair two years ago, I have to admit that not a month has gone by without the committee examining evidence from Canada's Auditor General that demonstrates ongoing mismanagement of taxpayer dollars and the abdication of any responsibility by Liberal ministers to improve performance or outcomes. I can report that even the Auditor General is becoming exasperated with a government that promises to do better, while little changes in report after report.
It is outrageous that taxpayers are being forced to bankroll the Liberal government's incompetence. The waste we discover is not an accident. It is the best the Liberals can do. On this side of the House, we believe that Canadians deserve better. Never has a federal government spent so much to achieve so little. After eight years, Canadians know that the is not worth the cost, the crime or the corruption, and he needs to be replaced.
In contrast, Conservatives would axe the tax, build the homes, fix the budgets and stop the crime. Liberals call this a meaningless slogan, but it is our mission statement for a principled and accountable common-sense Conservative government. Each point speaks to a promise that would reverse the decline the Liberal government has brought to Canada, which has left millions of Canadians worried and worse off, sometimes desperately so.
Today, the House of Commons is considering three important points, raised by the member for , concerning government spending and oversight. The , along with other Conservative members on this side of the House, wants to know how much the Liberal government spent on the ArriveCAN boondoggle, whether the responsible ministers will be held accountable for the budget failures, and whether the millions of wasted and unearned tax dollars will be returned to the Treasury.
The Auditor General reported that ArriveCAN was originally projected to cost $80,000, but it ballooned to at least $60 million. That is 750 times the original price. The key words from the Auditor here are “at least” because, as our Auditor General, Ms. Hogan, said in her value for money audit, it is “impossible to determine the actual cost of the application.”
For every MP and taxpayer to understand the severity of the mismanagement and waste, the Auditor General added, “This is probably some of the worst financial record-keeping that I’ve seen”. She also said, “Overall, this audit shows a glaring disregard for basic management and contracting practices throughout ArriveCAN’s development and implementation.”
It was lacking basic management and proper record-keeping, and there was no ministerial or departmental oversight. In other words, it is a bloody financial train wreck. That is the result of investigation number one from the federal government's own Auditor General.
The second investigation, done by the procurement ombudsman, revealed that, in a staggering 76% of ArriveCAN contracts, the contractor did not perform any work. I will note that that ombudsman will be at the public accounts committee this afternoon. We look forward to hearing about those findings and how taxpayers did not receive value for money. Apparently some contractors received money for no work. The investigation also revealed that a two-person company, GC Strategies, which did no IT work, was the only supplier in North America that could win some big government contracts because of bid rigging. This is from the ombudsman.
We will go back to the Auditor General, who reported, “We found that GC Strategies was involved in the development of the requirements that the Canada Border Services Agency ultimately included in the request for proposal.” This finding has not been addressed enough. The Auditor General is saying that GC Strategies was at the table when departmental officials were setting up the contract terms, meaning that it not only had the inside advantage, but also wrote the rules.
GC Strategies is a two-person consulting firm that does no IT work. It bids on federal government contracting schemes and then outsources the work to others. When GC successfully wins a bid, all it does is subcontract out that work to other contractors. There is little to no value in these arrangements, except for the owners, because the bidder charges and pockets a fat commission, of up to 30%.
Since 2015, this two-person consulting firm has collected over $250 million from taxpayers, according to reports by La Presse newspaper. In 2022, consultants such as GC Strategies were awarded $17.7 billion in contracts while ordinary Canadians struggled to pay for groceries and heat their homes.
Now, a third investigation has begun by the Information Commissioner into ArriveCAN. This one focuses on allegations of deleted emails by federal officials responsible for overseeing the ArriveCAN program. This is a concern the Auditor General has not dismissed and one that needs to be investigated.
Then to wrap all of this up, this taxpayer-funded mess, the RCMP is investigating it all. I believe evidence was heard at the public accounts committee indicating that the police should expand its scope after testimony from officials that reinforced that contracts were fraudulently submitted by contractors, work was not done at the value the taxpayer expected and that this needed to be looked at for fraud.
How did the ArriveCAN waste happen? Well, public servants did not follow the rules. A Liberal government that is not able to manage the bureaucracy or protect tax dollars was in place. Consultants swindled the system and, in some cases, broke the law. If we listen to testimony from public servants who appeared before the public accounts committee, there is a trend of excuses: “I wasn't there” and “I don't know what happened.” We heard that public servants did not sign off on these contracts and that their predecessors had either been moved to another department or are now retired. We also heard that they just did not know. No deputy minister has been fired, and no minister has been held accountable, yet bonuses were paid, which are bonuses for outsourcing work that the public service was responsible for doing in-house.
Three years ago, Conservatives called on the to end ArriveCAN. Instead of listening to common sense, these Liberals went ahead and wasted tens of millions of dollars. In the Auditor General's report, it clearly shows that the majority of spending on the ArriveCAN happened after the 2021 election.
The truth is, this is a scandal that could only happen under the Liberal government. For those who have been around this place long enough, and in many cases even longer, ArriveCAN combines the worst of two previous Liberal scandals: the ad scam and the long-gun registry.
In the ad scam, tax money was paid to Liberal consultants without records for little or no work. Does that sound familiar? Nearly $1.2 billion in sponsorship and advertising contracts were received by government outsiders through sole-source contracts.
Taxpayers would remember when former auditor general Sheila Fraser was unable to calculate the long-gun registry price tag because expenditures were not saved by the government. The filing cabinet was empty. At the time, she estimated the total cost at over $1 billion. Members will remember that, under a previous Liberal government, that program was supposed to cost $2 million, yet it was up, up and away, just like the arrive scam.
In conclusion, I will go back to ArriveCAN and the Auditor General's report, which reads, “In our view, flaws in the competitive processes to award further ArriveCAN contracts raised significant concerns that the process did not result in the best value for money.” That is the Auditor General saying that it was a financial train wreck, and it is another failure of this tired, wasteful Liberal government.
Who on that side of the House is accountable for this waste? Who will be accountable to Canadians?
:
Madam Speaker, I would like to start by emphasizing that every dollar the government spends is important, and the government, in all ways and in every way possible, tries to ensure that there is a high sense of accountability and transparency for it. That is something we have seen virtually from day one when this issue was first brought to light, and I want to amplify that and make it very clear.
The Government of Canada and the have been clear on this. We will ensure that there is a sense of true accountability on this issue, because every tax dollar spent is important. We have taken this very seriously, virtually from day one, in terms of the things the government needs to do in order to be able to support Canadians.
We have to put this issue in its proper context. This was at a time in which we had a worldwide pandemic going on; government expenditures started to increase dramatically. This was because the and the government decided to have the backs of Canadians from coast to coast to coast, in every region of this country. This meant that we had to create programs from virtually nowhere, such as the CERB program, which literally put thousands of dollars in the pockets of millions of Canadians at a time when we needed to be there for Canadians.
The government developed programs to support small businesses. Whether it was by providing the wage subsidy and loan initiative programs, coming up with the financial resources to be able to protect Canadians, providing indirect support through ideas such as ArriveCAN or ultimately providing supports for mental health, other long-term health care and so forth in a wide area of departments with different responsibilities, we took those initiatives seriously. We will continue to push for accountability for those monies that were, in fact, being spent.
However, today's debate is really nothing more than a Conservative stunt. I would challenge the Conservatives, in terms of asking why they are taking this whole cut, paste and post mentality on social media to mislead Canadians on important issues.
There is no doubt that procurement has always been an issue, even when I was an MLA in the Manitoba legislature. There is no surprise there. We have to ensure that there is more accountability in the ways in which the government acquires the things it requires.
If we want examples, we can go back to other federal governments, whether Liberal or Conservative. If we go to the provincial levels, we will find the same thing.
When something such as ArriveCAN comes up, what is important is how the government reacts. We have seen not one, but several ministers engage, in one form or another, with addressing the issue of the tax dollar and how it might have been abused. We believe that it has been abused.
That is the reason we are seeing the types of statements coming from the government: We want to protect the tax dollars and the integrity of the system. However, that is not the agenda of the Conservative Party. All one needed to do was listen to what the had to say when he opened the debate on the issue. He even admitted it when I posed the question about the importance of bumper stickers, because he went with his top four bumper stickers. He then went into ArriveCAN and bragged about how he is going to make sure his bumper stickers are all over the place.
Every bumper sticker that the puts out is an attempt to mislead Canadians, because Conservatives tend to think Canadians are stupid. It is really quite unfortunate. That is what today is about. It is a stunt being brought forward in order to generate some scenario so they can somehow tag the government with the word “corrupt” with respect to this issue; in fact, the government has been on top of it virtually from day one.
When I raised the issue in the form of questions and when I heard the parliamentary secretary talk about the company, one thing that came to mind is that there are really two issues here.
There is the issue of procurement and how it works. We have a professional civil service that, I would argue, is second to no other in the world. At times, mistakes happen, but it is about how the government responds when they take place. At the end of the day, that is one of the issues that I think is important for us to talk about.
The other issue is related to the two-person company itself. If we listen to what the members opposite say at committee, and here on the floor of the House, we often hear the comment “Liberal insiders” or “government insiders”. We hear that these two people were made wealthy because they were insiders. That is a bunch of hogwash. These individuals are the very same ones who received contracts when Stephen Harper was prime minister. The company had a different name; it was called Coredal Systems Consulting Inc., but two people from that company are the same two people as in GC Strategies Inc. They are one and the same.
Therefore, I would say to Conservatives that, as the second part, maybe we should look at how a company gets into a position where it can ultimately do what GC Strategies has done. To me, that is an important issue that I would like to provide answers for to my constituents. When I said that earlier, it upset a few Conservatives; it does not fit within their stunts. At the end of the day, they do not want real accountability. Why? It is because the two individuals in question are not Liberal or government insiders any more than they were when Stephen Harper was the prime minister.
When we look at it, we really begin to understand why the Conservatives do not want me to table the document. The parliamentary secretary to the minister attempted to table it earlier. I am going to attempt to table it now. If we look at the origins of the company, Coredal Systems Consulting Inc., and some of the contracts, I know why they do not want us to table it. It is because the was in government. He was a parliamentary secretary. Members would not believe the number of grants that were issued when he was in charge of the department. Is it any wonder that Conservatives do not want us to table the document or want Canadians to know? We would not know that by their behaviour, but the reality is that we are talking about a number of contracts.
Let me cite a couple of them. There is a contract dated May 26, 2013. We all know the important role the played back then. In fact, he was the parliamentary secretary for transport. Guess what? This contract was issued by the parliamentary secretary for Transport Canada, and Transport Canada issued a contract to Coredal Systems.
Coredal Systems is the very same thing as GC Strategies. That one was worth well over $1 million.
They then received another one here for $287,000, again, Transport Canada. I do not know if I should emphasize that the of the Conservative Party was also the one responsible in that case too. There are several of them, so let us make the assumption that the ones I am going to be referencing are all contracts for which the of the Conservative Party was responsible. We had another one from October 29, 2012. That one was just under a million, $968,000.
Then, if we continue on, I am just going to list off the ones in which the of the Conservative Party had a role to play, such as March 29, 2012, well over $200,000, again, Transport Canada. Here is one for well over half a million dollars, March 1, 2012, again, Transport Canada. There is another one on August 9, 2011, going to Transport Canada. Here is another one, July 29, 2011, again, all going to Coredal Systems.
An hon. member: How much?
Mr. Kevin Lamoureux: Madam Speaker, the Conservative member is asking how much they were. That member does not quite get it. It is the principle of this.
At the end of the day, we are talking about the very same company. I am sure that if the member opposite consulted with his constituents, he would find a high level of interest as to how it is that a company can create itself and then receive substantial government contracts through the years, into a worldwide pandemic where there was a great deal of money being spent to protect the interests of Canadians. It would appear that there was substantial abuse.
When I say substantial, I cannot underestimate the potential of how the taxpayer was being taken advantage of. That is why it does not matter what side of the House one sits on. I am concerned about it, as are my colleagues, as is the , as are the ministers responsible.
That is why, when we found out about the initiative, we did not just sit back and try to hide it; far from it. We initiated a number of studies into what had taken place. As I say, this is an example of the government needing to take action to ensure the integrity of the system. I am concerned about the system.
I like to think that, whether it is the national procurement process or provincial, territorial, or any other form of tax dollars that are used during procurement processes, there is integrity in the system. That is why we have had not one but several standing committees looking into this issue and not one but several independent offices of Parliament looking into this issue. That is why we have more than one department looking into this issue. There are literally tens of thousands of pages scattered all over the place on this issue.
To try to give the impression, the false impression, that the government does not take this seriously is absolute balderdash. This government understands the true value of every dollar we receive, because we understand that by using tax dollars in an appropriate fashion, we are able to provide the programming that Canadians want and expect of the government.
We have seen ample demonstrations of that over the years. During the pandemic we created the CERB program and the small business programs. Postpandemic we introduced the grocery rebate and investments in housing, infrastructure and non-profit groups. We hear about the pharmacare program, a program I have been advocating for since 2012 through petitions and other means. There is also the dental program.
We understand the true value of social programs and that is why we put a high value on accountability on tax dollars because we want to support Canadians through these social programs. I commented at the beginning that the Conservatives are more concerned about bumper stickers. We saw that today.
The has virtually mandated every Conservative who stands up to recite something. I wrote it down. I guess I should know it by memory by now because all of them like to say it. It is the bumper sticker sale going on, on the other side. They have to say, “cut taxes”. That is a must. That is their big bumper sticker. This is what the leader of the Conservative Party was saying when introducing the motion today. In case some people may be wondering about the relevance, I am actually quoting what the leader of the Conservative Party said today in his speech.
He said he would cut taxes, but what he does not tell Canadians is that he would cut rebates. When he cuts rebates, he is literally taking money out of the pockets of the residents of Winnipeg North, over 80% of them. I can say the residents of Winnipeg North are very much the working class of Canada. It is very reflective of ridings across Canada. He is taking more money out of their pockets, but would that stop him from using that bumper sticker? No.
The other talking point or bumper sticker that he made reference to earlier was that he would build more houses. Canadians need to know he was the minister of housing and he was a total disaster when it came to housing. He did not do anything on housing. For the first time in 50 years, we have a national government that is investing in housing. No government in the last 50 years has invested more money in housing than this government, nor worked with other jurisdictions. We are building tens of thousands of new homes over the next number of years. I will compare housing any day.
He talks about the issue of fixing the budget. Fixing the budget is code for a hidden Conservative, Tory agenda. It is the far right, the MAGA Conservatives, coming out. That is what that is all about. Someone made reference to the Phoenix disaster. When we first came into government, what did we experience? The Conservative Party had just cut hundreds of civil servant jobs. It said it was going to save millions of dollars and create this Phoenix project. That Phoenix project ended up costing taxpayers hundreds and hundreds of millions of dollars, going into billions of dollars; an absolute waste.
Of course, the Conservatives talk about their final point, which is to stop crime. We came up with a bail reform bill with consensus across Canada from all different political parties. What do the Conservatives across the way do? They filibuster. That is how they are going to stop crime. Initially, they are not. The Conservatives are the ones who actually held it up. The Conservative Party is all about stunts. Today is a giant stunt. Everything they do and say is ultimately for one goal and that is for the vote, and that is it.
On the other hand, we will continue to work day in, day out to support Canadians prepandemic, postpandemic and during the pandemic. There are many things I could talk about. Thanks for the opportunity.
:
Madam Speaker, $60 million is the running total so far for the and his NDP-Liberal government's arrive scam. This is a scandal that sees Liberal insiders lining their pockets with tens of millions of dollars while Canadians are lined up at food banks.
I just came from the Standing Committee on Access to Information, Privacy and Ethics where we heard very interesting testimony from the commissioner of the Royal Canadian Mounted Police. The of the official opposition sent a letter of complaint to the RCMP about the NDP-Liberal 's $60 million arrive scam. The RCMP commissioner confirmed, just minutes ago, that, yes, the Prime Minister's $60 million arrive scam is under RCMP investigation.
This is a government that has been mired in scandal. This issue, though on its face seems to be business as usual, is shocking to Canadians. It is shocking because one contractor, who worked on the government's failed $60 million arrive scam received $20 million, but that is $20 million out of $258 million that these two guys, working out of a suburban Ottawa basement, have been pulling in, in contracts. The same two guys admitted under questioning at committee that they fraudulently won the bids.
That was not enough for the government to freeze the awarding of contracts to GC Strategies, just like every single one of the Liberal members voted against having Canada's Auditor General investigate the arrive scam. Why did they vote against it? We learned, when we got the report back from the Auditor General, that it was damning, just like the report from the procurement ombud, revealing that 76% of the contractors, whose résumés were used to win the bids for the $60 million boondoggle, did not do any work on the ArriveCAN app.
The accountability that the Liberals look to apply to this measure is the same as having the fox guard the henhouse. They want internal processes, the CBSA, to investigate itself. That does a disservice to everyone. In my community, we have frontline border service officers and managers. Those border service officers work tirelessly to keep our country and our communities safe. They are appalled by what they have seen from the 's senior bureaucrats, like the former president of the CBSA, in this shocking waste of taxpayers' money.
I did have a parliamentary secretary in this place one day say that it saved tens of thousands of lives. The parliamentary secretary had to walk that back. There was no data. They just make stuff up. Also, under questioning, their officials at committee confirmed the same.
This scandal has seen explosive testimony at committee with allegations of bribery and extortion, and evidence of corruption, forgery, fraud and threats. After we forced meetings last week, including testimony by the Information Commissioner, the Information Commissioner has launched her own investigation into the 's and the NDP-Liberal government's $60-million scandal.
Today's motion is incredibly important because this is going to require the government to report on actual costs. It says something about the complete absence of transparency. The Liberals committed themselves to having the most transparent government in history and having sunshine be the best disinfectant. They need a lot of disinfectant over there because, every step of the way, they have tried to block the answers and the accountability that common-sense Conservatives have pressed for on this massive scandal. We want the actual costs.
Let us break down the name of the Auditor General for a second. She is a general who has an army of auditors, and she could not even get the true costs out of the government because of the paper shredders working overtime every time anyone takes a look at the Liberals and their well-connected friends.
We are going to get all the costs, all the way down the line, and we are going to call on the government to recoup the costs. Last week at committee, senior officials confirmed, when I asked, that there is a mechanism to get Canadians' tax dollars back in this egregious scandal. It is unbelievable that when we have officials lying at committee, when we have clear evidence of criminal acts and when all this evidence continues to pile up, the app was originally billed at a cost of $80,000.
We will hear the hue and cry that it was never going to cost $80,000 and that it could not have been built in a day. I have yet to hear testimony, in all the hours, at all the committees looking at this, that $60 million is good value for money. In fact, the Auditor General confirmed that this was not a value-for-money project, that there was gross mismanagement and that thousands of pages of documents are missing. The government does not know how many documents are missing, just like it does not know the true cost of the app. It is a bit of a problem, and this issue is one that we have been attuned to for more than a year. The government has pushed back on every effort that Conservatives have made on this.
I am pleased that I will be splitting my time to allow for another common-sense Conservative to speak to this egregious scandal.
In spite of the Liberals' protests and their filibuster of a two-day talkathon to try to block the founders of GC Strategies from having to testify at committee, dodging summonses from a parliamentary committee twice, the Liberals, yesterday, voted against the committee motion forcing the founders of GC Strategies to come before the House. They voted against it happening. Again, with common-sense Conservative pressure, we had to give them a mulligan and have a second vote because that member's party voted against accountability and transparency for Canadian tax dollars.
That is egregious, and Canadians are outraged. They are outraged, but they are also hungry and are lined up at food banks in record numbers: two million Canadians in a single month with a third of them being children. They are struggling after eight years of the NDP-Liberal government and its , who is not worth the cost, the crime or the corruption. That is what Canadians see under his government.
However, the good news is that it was not like this before, and it will not be like this after. Common-sense Conservatives have a very straightforward plan. It is to axe the tax, to fix the budget, to build the homes and to stop the crime. That is what Canadians deserve after suffering for eight years under a government that has been mired in corruption and scandal for years.
I look forward to putting the question to the House. We will see if Liberals are again going to work with their cover-up coalition to try to block this very important and straightforward accountability measure from passing. Their attempts before have not stopped Conservatives from working for Canadians. That is what we were elected to do. We are going to continue to provide answers and accountability for Canadians, and we are going to get some of their money back.
:
Madam Speaker, it is always a pleasure to stand in the House of Commons to speak on behalf of the people of Calgary Midnapore.
I think everyone has had a situation in his or her life such as going through the grocery store, putting items in the cart, getting to the checkout and having to remove items. Maybe it was a crazy night out. Maybe it was eating too many candies after time with friends or family. We have all had a situation in our lives where, as we are at with arrive scam today, we have asked ourselves how something even happened.
How this even happened is the big question for today. That is why we, official opposition members, are asking the Liberal government to table a report by March 18 showing the complete costs of arrive scam, and to this date we have no idea what those really are, and to collect and recoup all the funds paid to contractors who did no work. We know there were many, and certainly one in particular. We have this opposition day motion before us today because Canadians are asking how this even happened.
ArriveCAN was an application that was supposed to cost $80,000. This is what a group of individuals who spent a weekend replicating the application said it could be done for. Lo and behold, the indicated price of this increased to a couple dozen million and then, more recent, we found out that this app had cost $54 million; that is $54 million for an application that individuals said they could have built for $80,000.
Recently, with the report of the Auditor General, we found out it cost a minimum of $60 million, and we are not even certain that is the total amount because of the poor documentation done by the government, which speaks to its incompetence.
The main vendor behind this is the infamous GC Strategies, the two-person company working out of its basement, which we originally thought was paid $11 million. After the Auditor General's report, we found out it was closer to $19 million. Again, we are not entirely sure because the documentation is not there to even prove that is all it was paid.
It was recently released in the press that this company, this two-person company working out of its basement and not even doing any work, has been given a quarter of a billion dollars in contracts by the NDP-Liberal coalition, by the Liberal government, which is an incredible amount.
Within the arrive scam application and its vendors, we have the possibility of collusion, of price-fixing and certainly inflation of prices, all of these things. One of my colleagues, the member for , questioned the witnesses. He asked them over and over again what they did and they could not even respond. They were unable to answer the question.
GC Strategies was also determined to have forged résumés in an effort to get these contracts. We all know the penalty for doing this, for example, if one is applying for a private position, or applying to a university or forging a transcript. These things are unheard of, yet it was done by this vendor, which was paid a quarter of a billion dollars by the Liberal government.
We have the destruction of documents by the chief information officer at the time of arrive scam. One cannot even make this stuff up. Again, how did this even happen? Canadians are wondering that.
It gets worse. The head of the CBSA did not even report the RCMP investigation of GC Strategies to the Auditor General, who found out about it in The Globe and Mail. The government is so dysfunctional that the right hand does not know what the left hand is doing. Then we have the integrity director within the CBSA investigating the situation.
We are seeing what happens time and time again. The government is investigating itself. I am not sure where this holds up to be evident. I certainly would love the opportunity, and I think many people would, where we determine ourselves whether we have done wrongdoing or not. Unfortunately, democracy is not supposed to work this way and Canada is not supposed to work this way, but this is the way the arrive scam is. Therefore, again, how did this even happen?
Those who have evaluated what happened here, and we have not even gotten to the RCMP investigation, have not found good things. We had the procurement ombud review of arrive scam and his words were very damning. He found that out of 41 ArriveCAN-related procurements, 23 contracts were issued using a competitive process, but 31.7% of all contracts were non-competitive, sole-source contracts, which is one-third. It is terrible. We also found that 43.5% of contracts were from disincentive bidders using lower rates and encouraging bidders to pick a less risky hire rate. Members may have also heard that GC Strategies, this firm that we have talked so much about in the House of Commons, even won a bid because it wrote the terms to win the bid. It was making up the rules so it could win the bid. It goes on and on.
I will point out everything we see with the arrive scam. We see the incompetence of the government. We see the government not accepting responsibility. We see the complete lack of respect for the taxpayer and no value for money here, and I will talk about that a bit more in a minute. As a microcosm of the government and how it has spent the last close to nine years now, the arrive scam is, sadly, a microcosm event.
It gets worse after the review of the procurement ombud who gave the arrive scam a failing grade. Two weeks ago, and the Liberal government did not want this to happen, we had the release, finally, of the Auditor General's reports. Whatever excuse the Liberals tried to use for the arrive scam, such as the crisis situation, she said that it was not an excuse to not get value for money for the Canadian taxpayer. We found that 18% of invoices submitted by contractors did not have supporting documentation. We know now that task authorities were issued and paid for while not even having tasks assigned to them. Essentially, people could have been paid for work that they did not even complete. It is absolutely unbelievable.
In addition, in the Auditor General's report, $12.2 million could not even be associated to ArriveCAN, or the arrive scam. This amount is unbelievable. We also found in her report that per diem rates were $1,090 per day compared to the $675 comparable IT positions in other departments. It is just astounding that these things could happen with the arrive scam, that there could be such blatant disregard for the taxpayer.
However, this is happening by the Liberal government in this day and age. It is a government that just had a $23.6 billion deficit between April and December of last year, a government that is sending over a million Canadians to food banks and a government that is allowing one in five Canadians to skip meals. The arrive scam is a complete microcosm of the government and this failure.
The good news, as we found out today, is that the RCMP investigation has now been extended to include the arrive scam, which is a big victory for us on this side of the House, our tenacity in our quest for the truth, our not wanting to give up on finding the truth for Canadians and on getting value for them.
However, the final question that remains, which I started my speech with, is how did this even happen?
:
Madam Speaker, I will be sharing my time with the member for .
As members of the House, we share a profound duty to ensure that public funds are used effectively and for the public good. This principle is paramount, especially in times of crisis, when swift action is necessary and resources are stretched thin. The COVID-19 pandemic presented unprecedented challenges requiring urgent and innovative responses. Among them was the development of the ArriveCAN app, a tool swiftly implemented to manage the risks associated with international travel during the pandemic.
It is crucial to recognize the context in which ArriveCAN was developed. It was a period marked by uncertainty and the urgent need to protect public health. ArriveCAN was instrumental in mitigating the spread of the virus by international travel. By simplifying the submission of travel and health information for individuals entering Canada, it made a substantial contribution to our efforts to manage the pandemic effectively.
Drawing from my background in IT consultancy and project management, I aim to provide a nuanced perspective on ArriveCAN, which may not have been shared in the House as of yet. I will focus on three aspects: the development process, cost avoidance and its true valuation.
I will start with the development process. In addressing the development cycle of ArriveCAN, it is important to highlight the extraordinary circumstances under which the application was developed. Traditionally, a development life cycle spans several sequential phases over approximately nine months to a year. These sequential phases are complete business requirements, looking at scope finalization, solution design and solution development, doing testing and piloting, and rolling out and supporting. The total requirements were 177 different functionalities that the app had to do.
However, given the urgent demand created by the pandemic, we shifted to a rapid, agile methodology, progressing on a requirement-by-requirement basis. As the requirements kept evolving and the number of stakeholders, such as the provinces, PHAC, the World Health Organization, security and data protection put extra requirements on how this application was evolving, this approach allowed us to dynamically integrate new requirements as they emerged, ensuring the app was continually updated and adapted to respond to the evolving pandemic situation. This agile development strategy not only expedited the app's rollout but also ensured its flexibility and responsiveness to public needs. This type of development, by virtue of the fact that requirements come at different stages rather than all being identified up front, leads to an increased cost of development.
I do not want to justify the $60 million, because I think there is a lot of room for improvement on that. Nevertheless, through our discussions and the examination by the Auditor General and the procurement ombudsman, it has become evident that there are concerns regarding the financial management and procurement processes of the ArriveCAN app. While these concerns are valid and demand our attention, it is essential to contextualize the financial aspects of the app within the broader scope of pandemic management and the digital transformation.
It is also crucial to discuss the cost savings or cost avoidance facilitated by ArriveCAN. Replacing the traditional paper-based system, the app presented a significant advantage in terms of cost-efficiency. The estimated cost of processing each paper transaction was $3 per transaction. Taking into account that this app was used over 60 million times, this would total anywhere from $120 million to about $180 million in potential cost savings.
If we look at even the lower end, the $120 million, that is twice the amount that was spent on ArriveCAN. This figure underscores the financial prudence of the ArriveCAN project, highlighting how technical innovation can lead to substantial savings in public expenditures, especially in a time of crisis.
Lastly, on the topic of valuation, it is essential to differentiate between the cost of developing an app and its market value. If we consider an e-commerce application with 18 million users and 60 million transactions, facilitating billions of dollars in monetary transactions, I would ask any member of this House what its valuation would be.