Canadian Government Faces Scrutiny Over Controversial Contracts with GC Strategies

The Bloc québécois is calling for the oversight of the Canada Border Services Agency (CBSA) while the Conservative Party is urging the Auditor General to examine each contract awarded to the firm GC Strategies, at the center of the scandal surrounding the ArriveCAN application since the Liberals came to power in 2015.

Prime Minister Justin Trudeau faced a barrage of questions in the House on Wednesday. The consulting firm, which now has only two employees and whose main address is an Ottawa bungalow, has come under scrutiny for receiving over $250 million in government contracts.

The Conservative leader, Pierre Poilievre, exclaimed, “A quarter of a billion dollars for a company boasting the fastest growth in Ottawa. There’s no doubt about that.” The leader of the Bloc québécois, Yves-François Blanchet, echoed, calling it a clear mismanagement of public funds and suggested the government should seek to recover misspent money.

Trudeau stated that internal processes were initiated as soon as irregularities were noticed. He highlighted ongoing police interest in the matter and emphasized the need for authorities to investigate thoroughly to address the questions raised by Canadians.

At a Liberal caucus meeting, Public Services and Procurement Minister Jean-Yves Duclos announced that contracts with GC Strategies had been suspended since November 2023, around the time the Auditor General began her audit.

The CBSA alone awarded GC Strategies nearly half of the 140 contracts for various IT services over the past eight years. The agency detailed that it granted four large contracts totaling $56.4 million over three years, with three being non-competitive awards to GC Strategies.

GC Strategies, an IT intermediary, has worked on projects across over 20 federal departments and reportedly received 15-30% commissions on government contracts. The firm’s involvement in the development of ArriveCAN amounted to $19.1 million, and its revenue skyrocketed by 676%.

In an interview, Security Minister Dominic LeBlanc refrained from confirming corruption but highlighted that two CBSA employees were suspended without pay in connection to the case. The firm had already faced scrutiny following a damning report by the Auditor General on the mismanagement of the ArriveCAN project.

The Auditor General’s findings have cast doubt on all contracts awarded to GC Strategies since the Liberals took office, with concerns raised over the handling of public funds.

Transport Minister Pablo Rodriguez emphasized accountability, stating that anyone found to have engaged in wrongdoing must face consequences. Investigations by CBSA and the Royal Canadian Mounted Police are ongoing.