The long-awaited report from the Auditor General on the ArriveCan application has revealed that several government agencies failed to adhere to proper management and contracting practices during the app’s development. The report highlighted the absence of key records related to financial decisions and development processes. During a session with the public accounts committee, Auditor General Karen Hogan expressed her concerns about the lack of records showing how much was spent, who did the work, and how and why contracting decisions were made.
Ms. Hogan’s report stated that the Canada Border Services Agency (CBSA), Public Health Agency of Canada (PHAC), and Public Services and Procurement Canada did not follow “good management practices” in the contracting, development, and implementation of ArriveCan. Financial records and documentation from the CBSA regarding the app were described as “so poor” that the exact cost of ArriveCan could not be determined, although estimates put the cost at $59.5 million. The Auditor General criticized the public service for failing to ensure that Canadians received the best value for money and stated that too much was paid for the application.
Furthermore, the report highlighted the CBSA’s failure to follow policy, controls, and transparency during the app’s contracting process, which restricted opportunities for competition and undermined value for money. As a result, the agency’s decision to work with external resources and continually rely on them throughout the project resulted in very high costs, according to the report.
The House of Commons passed a motion in November 2022 for the Auditor General to conduct a performance audit of ArriveCan, and the ongoing investigation has been punctuated by allegations of misconduct and corruption in the development and contracting processes for the application. The report uncovered that a two-man IT company was paid $8.9 million as a general contractor on the ArriveCan project before outsourcing the work to six other companies, pocketing a commission of between 15 and 30 percent.
In response to these developments, Liberal, NDP, and Bloc Quebecois MPs voted to suspend further hearings on the ArriveCan application, citing potential risks to current CBSA and RCMP investigations into the scandal. This move came after MPs on the committee read a preliminary statement of facts on the CBSA’s investigation of the app, which was described as “scary.” The ongoing situation has raised serious concerns about the management and oversight of government-funded projects, and further developments are expected.