Minister Éric Caire signed a controversial order allowing the Société d’Assurance automobile du Québec (SAAQ) to avoid Treasury Board oversight, concealing an additional $222 million in costs related to the SAAQclic project. Despite being informed of financial issues just days prior, the new directive enabled unrestricted funding allocations. The Auditor General revealed that the total project costs soared from an initial $638 million to at least $1.1 billion, raising significant governance and accountability concerns.
Unveiling the SAAQclic Controversy
Just nine days after being alerted about the financial overruns linked to the SAAQclic initiative, Minister Éric Caire took decisive action by signing a ministerial order. This move enabled the Société d’Assurance automobile du Québec (SAAQ) to sidestep Treasury Board regulations, effectively concealing an additional $222 million expense related to this troubling project.
Key Developments in the SAAQclic Saga
On June 22, 2022, Minister Caire altered the operational framework concerning the SAAQclic project. His directive permitted the SAAQ to allocate fresh funding to the CASA/SAAQclic initiative without these expenditures being made visible in Quebec’s electronic tendering system (SEAO).
This regulation, known as “ministerial order number 2022-03,” was designed to streamline funding processes. Consequently, the SAAQ can now disburse millions without adhering to Treasury Board scrutiny, with the only stipulation being that no single allocation exceeds 10% of the original contract value.
Interestingly, just days before this significant change, on June 13, Minister Caire was made aware of the SAAQ’s financial challenges. The new order allows both the SAAQ and other government entities to bypass standard oversight as they transition digitally.
Reports suggest that both Minister Éric Caire and Deputy Minister Pierre E. Rodrigue were present during a presentation where SAAQ officials detailed the project’s financial issues. Alarmingly, even prior to the establishment of the Ministry of Cybersecurity and Digital in January 2022, the SAAQ’s leadership had raised concerns about the project’s alignment and budget.
Recently, as a result of these findings, the President of the Treasury Board, Sonia LeBel, announced a reevaluation of Rodrigue’s recent appointment as president of the Office of Professions.
The Auditor General of Quebec has highlighted that the initial budget of $638 million for the CASA/SAAQclic endeavor has surged, with costs now projected to be “at least” $1.1 billion. Furthermore, during the 2022 election cycle, it was revealed that the SAAQ fragmented the allocation of an extra $222 million to avoid public disclosure on the SEAO system.
According to the Auditor General, SAAQ executives had proposed modifying the existing contract to immediately allocate $222 million to SAP and LGS, the companies responsible for the project. However, this revelation was deemed to carry “high media and political risk,” leading to a decision by the Board of Directors to obscure this new financial burden.
The timeline of events surrounding the CASA/SAAQclic project is as follows:
- 2014: A decree from the Pauline Marois government permits the SAAQ to bypass oversight during its digital transformation.
- 2017: The Liberal Party enacts a law enhancing governance and management of public organizations’ information resources, nullifying the previous decree and requiring accountability to the Treasury Board.
- January 2022: The Ministry of Cybersecurity and Digital is established, with senior management acknowledging project cost issues.
- June 13, 2022: The SAAQ’s Vice President of Digital Experience, Karl Malenfant, briefs Minister Caire on the project’s financial details.
- June 22, 2022: Minister Caire signs a ministerial order allowing the SAAQ to bypass oversight mechanisms.
- September 2022: During the election campaign, the SAAQ Board opts to conceal the $222 million cost overruns due to perceived media and political risks.
- October 31, 2022: Minister Caire meets with Malenfant for an update on project progress, noting concerning status indicators.
- November 2, 2022: SAAQ CEO Denis Marsolais and Vice President Karl Malenfant present “The CASA Upgrade” to Minister Geneviève Guilbault.