Concerns have arisen over the awarding process of a significant IT contract related to the SAAQclic controversy, prompting a review by the CEO of the Public Procurement Authority. The Auditor General’s report revealed potential conflicts of interest with SAP Canada Inc., which had prior involvement with SAAQ before securing the contract. The project’s budget has escalated from $638 million to an estimated $1.1 billion, raising alarms about misleading information provided to management. Calls for further investigation are growing.
Investigation Initiated into SAAQclic IT Contract
The President of the Treasury Board has expressed concerns regarding the awarding process of a major IT contract linked to the SAAQclic controversy. In light of potential conflicts of interest, the CEO of the Public Procurement Authority has been requested to conduct a thorough review of the contract’s awarding.
“After reviewing the VGQ report concerning the CASA/SAAQclic situation, which outlines several alarming issues, I have asked Yves Trudel, the CEO of the Public Procurement Authority, to scrutinize both the awarding process and the execution of the contract,” stated Sonia LeBel on X late Monday night.
Details of the Auditor General’s Findings
In her recent report on the digital transformation initiative at the Société d’assurance automobile du Québec (SAAQ), the Auditor General identified potential conflicts of interest regarding one of the primary contracts of the CASA project. The firm SAP Canada Inc. provided advisory services prior to the tender being released, raising eyebrows when they subsequently secured the contract to become the software provider.
VG Guylaine Leclerc pointed out that SAP had an unfair advantage during the bidding process, having interacted with approximately forty SAAQ employees while preparing the tender. “The winner was involved in defining the requirements, which indicates a certain level of privilege,” she remarked.
The design contract for CASA, aimed at modernizing the organization through the SAAQclic platform, was awarded to the Alliance Société-conseil groupe LGS and SAP Canada Inc. These entities stand to gain significantly from the project’s development and deployment.
In her findings, the Auditor General highlighted that the original budget of $638 million for the initiative has ballooned, with expenses projected to reach a staggering $1.1 billion.
Moreover, the Auditor General criticized the project leaders for misleading senior management within the SAAQ, its board, and the government regarding the project’s status. In her correspondence with the CEO of the AMP, Ms. LeBel affirmed that the organization has the authority to investigate this contract further.
“On February 20, the Auditor General of Quebec released a performance audit report titled ‘CASA/SAAQclic: costs, timelines, and quality,’ which uncovers troubling circumstances surrounding the modernization of the SAAQ’s information systems, particularly through the acquisition of integrated management software and the creation of a digital transactional platform,” the President of the Treasury Board noted.
Liberal transport critic Monsef Derraji has echoed the call for an investigation, stating, “I made this request last week, Madam Minister. The AMP is empowered to investigate following the Auditor General’s report, especially considering the gravity of the findings. Additionally, we must address the responsibilities of your colleagues.”