44th Parl. 1st Sess.
February 27, 2024 10:00AM
- Feb/27/24 10:34:47 a.m.
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Mr. Speaker, I want to start with this: It was actually the Conservative government that cut IT staff in the public service. We saw outsourcing go up with the big six companies; it doubled under the Conservatives. We saw it quadruple under the current Liberal government. It has become unequivocally clear that the corporate-controlled parties, both Liberal and Conservative, are continuing to go to the highly paid private sector to give it taxpayer dollars to provide services that could be provided by the public service.
We put forward a motion, as New Democrats, to expand the study beyond ArriveCAN, as we know GC Strategies started doing business with the government under the Harper regime. We asked to expand it to look at all outsourcing, including Deloitte, which went from $97 million doing contracts with the Government of Canada to $275 million. My question to the Conservative leader is this: Why is it that the Conservatives will not let us expand the study? It has been a year since the motion passed. Is it because Peter MacKay is a director at Deloitte or is it because Pierre Pettigrew is a director at Deloitte? We know that it is the corporate-controlled parties that are blocking us from having a real look at what is going on—
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- Feb/27/24 11:47:01 a.m.
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Mr. Speaker, it is an honour to rise, and I will be sharing my time with the member for Courtenay—Alberni.
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.
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- Feb/27/24 12:18:57 p.m.
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Madam Speaker, I will be splitting my time with the member for New Brunswick Southwest.
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 Prime Minister’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 Prime Minister 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 Prime Minister'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 Leader of the Opposition, 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 Prime Minister 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 leader of the NDP, 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 Prime Minister to table a report in the House showing that public funds have been reimbursed. This is the ultimate accountability that the government can demonstrate.
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- Feb/27/24 12:36:30 p.m.
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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 Prime Minister 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 Prime Minister 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 Carleton, concerning government spending and oversight. The leader of the official opposition, 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 Prime Minister 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?
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- Feb/27/24 12:51:50 p.m.
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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 Prime Minister 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 Prime Minister 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 Conservative leader 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 leader of the Conservative Party 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 leader of the Conservative Party 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 leader of the Conservative Party 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 leader 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 leader 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 leader 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 Prime Minister, 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 leader of the Conservative Party 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.
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- Feb/27/24 1:38:05 p.m.
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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 Sherwood Park—Fort Saskatchewan, 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?
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- Feb/27/24 2:19:20 p.m.
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Mr. Speaker, after eight years, the NDP-Liberal Prime Minister is not worth the cost, crime or corruption. Only common-sense Conservatives will axe the tax, build the homes, fix the budget and stop the crime.
Canadians deserve answers about how the Liberal government's useless arrive scam app went from costing $80,000 to at least $60 million. Just last week, the national president of the CBSA's union said that the $60 million that was squandered on the arrive scam app could have been used to hire 600 frontline border agents.
This Liberal-NDP coalition is not worth the cost. We now know that this reckless abuse of taxpayer money and blatant corruption is just the tip of the iceberg. Four years of emails have vanished in an apparent attempt to cover up the corruption and destroy records related to this scam app. The NDP voted “yes” at least eight times to give tens of millions of dollars for cost overruns and money-for-nothing contracts to shell companies. Common-sense Conservatives voted “no” every time.
The NDP now has the chance to stand up and vote to release all the missing documents.
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- Feb/27/24 2:52:37 p.m.
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Mr. Speaker, perhaps the minister needs to review the evidence from the ethics committee.
A two-person consultant company working out of their basement doing no IT work received $20 million tax dollars. Talk about hitting the taxpayer lottery. This sham of a company is already under RCMP investigation. Today, we learned the RCMP is investigating this in all kinds of criminality.
I will ask again: Will the Prime Minister fully co-operate and waive all cabinet confidences, or will he hide again and obstruct?
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- Feb/27/24 3:51:50 p.m.
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Madam Speaker, I wish to thank the hon. member for Kamloops—Thompson—Cariboo from the interior of British Columbia, I have said before that our families have known each other for about six decades since our parents immigrated to Canada. The hon. member and I both know the value of a dollar and how hard it is to work and save that dollar.
We need to make sure the processes in place in government are robust and effective. Where things have gone wrong, where there have been actions, criminal or not, where taxpayer dollars have been utilized by whomever, there needs to be an investigation. There needs to be transparency.
Literally thousands of documents have been turned over to, I think, the OGGO committee. If the RCMP or any other organization needs to be called upon, we will get to the bottom of it. It is important for me, it is important for the hon. member and it is important for all Canadians.
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- Feb/27/24 4:11:53 p.m.
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Madam Speaker, I will start with a caveat. I have been involved in so many committees looking at this particular scam that it will be a real challenge to keep my comments to 10 minutes. I could literally speak for hours, but I am happy to highlight some of the important points today.
I will start by reiterating our common-sense plan. As Conservatives, we will axe the tax, build the homes, fix the budget and stop the crime. After eight years, with a worn-out, tired Liberal-NDP government, Canadians have endured unprecedented levels of corruption.
Today, we are debating the Conservative motion that calls on the Liberal government to table the full cost of the arrive scam app within 100 days from today's date and to reclaim all money that was paid to contractors and subcontractors who performed no work. This is the app, according to the Prime Minister, that should have cost the taxpayer $80,000, but now we have the Auditor General guessing at an amount of $60 million. It could be $70 million or $80 million. We do not know how much more than $60 million, but we do know that it is at least 750 times more than the original cost.
I have been keeping track for several weeks now; several ministers, if not members of the backbench, have commented that, if the rules were broken and there was malfeasance or criminality, those responsible will be held accountable for their actions. What we have not heard at all is any minister, including the Prime Minister, indicating in the House that the buck stops with the government. Where was the Prime Minister? Where was the Minister of Public Services and Procurement?
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- Feb/27/24 4:14:25 p.m.
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Where were all those ministers for a period of three-plus years? Were they completely tone deaf? Were they completely derelict in their responsibility, asleep at the wheel? Were they simply complicit with fleecing the Canadian taxpayer of at least $60 million?
Why is that important? It is because they need to look themselves in the mirror and say to Canadians that they did not provide the appropriate ministerial oversight.
I have heard from deputy ministers and from several presidents of the impugned agencies, as laid out in the Auditor General's report. Every one of them confirmed regular, consistent, numerous discussions with the appropriate minister.
Surely, all of them, including the Prime Minister, knew how badly out of control this arrive scam was going. They had the opportunity to rein in this out-of-control spending and stop the criminality, but they did not.
That is what Canadians should be most appalled about, not necessarily just our professional public servants and those individuals they contracted with, such as GC Strategies. They are under investigation. Quite frankly, the government and the Prime Minister need to be under investigation.
We all know what is going to happen; we knew about it in the Aga Khan scandal and the SNC-Lavalin scandal. There is a two-tiered level of justice when it comes to dealing with government misconduct, potential government criminality and potential criminality involving the Prime Minister. The Prime Minister has the luxury of hiding behind cabinet confidentiality.
Today, in the ethics committee, I put it this way to the RCMP commissioner: Are Canadians to believe that the Prime Minister can engage in a whole host of criminal activities and simply hide behind the shield of cabinet confidentiality? He did not have a good response, I will admit. Certainly, that is what it looks like.
As a former Crown prosecutor, I can say that there was ample evidence to support the charge of obstruction of justice by the Prime Minister in his campaign of trying to influence the actions of the first indigenous attorney general, Jody Wilson-Raybould. However, again, the government would not release the documents. It would not release them to the Ethics Commissioner and certainly not to the RCMP.
However, the government talks about how independent the RCMP is. It talks about how it is going to be transparent and accountable. The Prime Minister promised Canadians that in 2015.
Madam Speaker, look at the mess they have created in the last eight years. They are the most corrupt government this country has ever seen. There is no question about that.
The member for Winnipeg North can laugh all he wants; he knows it is the truth. He knows how difficult it is, day after day, to sit in this House and defend the illegal actions of the government.
I have so much to say here that I do not even know where to begin.
Now the members of the NDP caucus are blindly following along with everything the Liberal government has to say. They are so hypocritical. They will challenge and they will fiercely try to argue that we should be holding the government to account, yet they blindly support it time after time. They voted with the Liberal government on at least eight occasions to continue funding this particular scam. If they had voted no on at least one occasion if not all of those occasions, I certainly would not be standing here today talking about the scandal and its cost to the taxpayers.
I will conclude with this. After eight years, the Liberal government has proven itself both financially incompetent and riddled with corruption. Common-sense Conservatives will get to the bottom of the scandal and bring home accountability for taxpayers.
Therefore I stand in the House today, along with my Conservative colleagues, to hold the government accountable for its reckless and irresponsible use of taxpayer dollars. Conservatives demand that the government take decisive action to recover all funds paid to the ArriveCAN contractors, and most importantly the subcontractors, who failed to deliver on their obligations. We are asking for that within 100 days of the motion's being adopted. We are calling on the Prime Minister to present a comprehensive report to the House demonstrating the successful repayment of the taxpayer funds.
This motion is a crucial step in bringing home accountability for Canadians, and it is well within the federal government's mandate. With a commitment to common-sense governance, Conservatives are steadfast in unravelling the scandal and restoring accountability for taxpayers. I encourage all members of the House to stand and support our common-sense motion.
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- Feb/27/24 5:12:18 p.m.
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Madam Speaker, one thing the New Democrats agree with the Conservatives on is that it is always wrong when taxpayer dollars are wasted in unnecessary procurement. The structural problem here is a series of successive federal governments that contract out work instead of using the public sector to provide these services. I was in the House when I watched the Conservatives contract out the Phoenix pay system, which was supposed to save $80 million. It ended up costing over $2 billion, and it does not even work. Now, we see the Liberals contract out this work to ArriveCAN, and we see similar results.
Does my hon. colleague not agree with the NDP that it is time we use the talents and the skills of Canada's public servants to deliver these kinds of services, instead of giving money to the private sector contractors who are more interested in profit and the ability to abscond with money than they are in providing real value to the taxpayers of this country?
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