The company at the centre of the ArriveCan controversy has received $107 million from federal government contracts since 2011. Roch Huppé, comptroller general of Canada, said GC Strategies and its predecessor Coredal received over 100 federal government contracts during that time. Mr. Huppé informed the House public accounts committee on March 6 that between Jan. 1, 2011, and Feb. 16, 2024, departments reported 118 contracts with that supplier, totalling $107.7 million.
He added that releasing the updated information is part of a larger effort to ensure accurate information is provided from the federal government’s procurement database. Mr. Huppé emphasized the importance of providing transparent and precise contract information to maintain the trust Canadians have in their institutions. He also requested a full report on contracts involving two other companies connected to the controversy—Dalian Enterprises and Coradix Technology Consulting.
In addition, Public Services and Procurement Canada (PSPC) issued a statement on March 6 announcing the suspension of the security status of GC Strategies, preventing the company from engaging in any contracts with security requirements. PSPC also suspended all work orders involving Coradix Technology Consulting and halted any new government work with the company. Furthermore, Dalien Enterprises had its status suspended earlier.
Auditor General Karen Hogan presented a report on ArriveCan in February, highlighting mismanagement and contracting irregularities. The app’s development cost ballooned to $59.5 million, far exceeding the initial estimate of $80,000. This revelation sparked concerns and inquiries from MPs at the committee meeting, with Ms. Block raising questions about accountability and oversight lapses in government departments related to the ArriveCan app.
Ms. Hogan shared concerns about potentially adding more rules to an already complex system instead of enforcing existing regulations. She stressed the need for respecting and upholding current rules to ensure effective governance without hindering progress. The committee discussions underscored the need for accountability, oversight, and transparency in government procurement practices to regain public trust and uphold proper financial management.