(Ottawa) Public Services and Procurement Canada (PSPC) – a department responsible for awarding more than $20 billion in contracts annually on behalf of the federal government – is asking its thousands of employees to show their credentials.
The story so far
April 29, 2020: The application ArriveCAN was launched during the first months of the COVID-19 pandemic to allow travelers to enter their vaccination status.
February 12, 2024: Auditor General releases devastating report on cost overruns surrounding the app ArriveCANinvolving companies GC Strategies and Dalian, among others.
February 28, 2024: Dalian Enterprises Inc. founder and chairman David Yeo has reportedly served as a consultant to the firm and a civil servant at the Ministry of Defense for a period of time.
March 15, 2024: Public Services and Procurement Canada sends an email to all its employees, asking them to disclose if they have paid employment outside the department or if they have interests in a company. The goal is to avoid conflicts of interest.
In the wake of the scandal ArriveCANSPAC has asked its employees to disclose whether they hold other paid employment outside the department, or whether they own a business, either independently or in partnership.
The aim of this approach was to ensure that civil servants working for the ministry, who may be called upon to make decisions on numerous contracts, avoid placing themselves in a situation of conflict of interest.
The Press recently obtained an email that was sent to all employees in March by an agent from the Center of Expertise on Values, Ethics and the Prevention of Harassment and Violence.
“As you know, over the past few months, and particularly in recent weeks, PSPC has generated significant public interest and media attention. We know that PSPC employees demonstrate the highest integrity when it comes to upholding public sector values and ethics,” wrote Officer Catherine Dolan in the email.
However, the SPAC mandate, by its very nature, presents greater risks with respect to perceived or actual conflicts of interest.
Excerpt from an email sent to SPAC employees
“It is therefore essential that we ensure compliance with the Values and Ethics Code for the Public Sector and the Treasury Board Directive on Conflict of Interest, because not only will we prevent conflict of interest situations, but we will also avoid any appearance of conflict of interest that could tarnish the reputation of the organization and its employees,” she adds in her bilingual email.
She also explained that ministry employees have an obligation to disclose if they have assets, liabilities or personal relationships that could present “a risk of real, apparent or potential conflict of interest.”
In an email to The PressSPAC indicated that this email was sent in mid-March and that the approach was intended to remind employees “of their responsibilities as public servants.”
The ministry said it received responses from more than 18,000 employees, about 11% of whom reported outside activities.
“The vast majority of responses were confirmations or updates to declarations that had already been submitted. A large portion of the external activities declared by public servants to PSPC are in the area of non-profit, voluntary and community organizations, the hospitality and service sector, as well as reservists with the Armed Forces and people involved with cadets,” explained Michèle LaRose, PSPC spokesperson.
The Dalian case
PSPC decided to send the email after media reports, among other things, of Dalian Enterprises Inc. founder and chairman David Yeo, who served as a consultant and civil servant at the Department of Defense for a time. Dalian, which has only two employees, has received more than $3 million in contracts from the same department in recent years.
After GC Strategies, which received no less than 19 million as part of the application development project ArriveCANDalian is the consulting firm that has won the largest contracts, worth nearly $8 million, according to a devastating report by the Auditor General published earlier this year.
The auditor general’s office has also been rocked by controversy over the double employment of some of its employees. Two employees in Karen Hogan’s office, the government watchdog, were fired in March after receiving double pay as civil servants and contractors.
Let us recall that the application ArriveCanwhich was used at the border to enforce health measures during the pandemic, was expected to cost taxpayers about $80,000. But the many changes made to the app have caused costs to skyrocket to $59.5 million.
With the collaboration of William Leclerc, The Press