Particle.news

Download on the App Store

Audit Reveals Lax Oversight of GCStrategies Contracts, Prompting Seven-Year Federal Ban

Auditor-General Karen Hogan’s report details systemic procurement breaches in ArriveCan contracts

Auditor General of Canada Karen Hogan packs up her notes after participating in a news conference on four performance reports to the House of Commons, in Ottawa, on Monday, March 27, 2023. THE CANADIAN PRESS/Justin Tang

Overview

  • The report shows GCStrategies secured 106 federal contracts from 31 departments between 2015 and 2024, with a total value of $92.7 million and $64.5 million disbursed.
  • In 46 percent of reviewed contracts, officials approved payments without evidence that the work was performed or proper timesheets had been collected.
  • Half of the audited contracts lacked documented security clearances for subcontractors at the time of award and during ongoing work.
  • Auditors found that one-third of contracts involved subcontractors without verified experience or qualifications to fulfil contract requirements.
  • Public Services and Procurement Canada suspended GCStrategies from federal contracting for seven years and the RCMP and CBSA investigations into the company remain active.