Conservative Senator Leo Housakos has called for outstanding fines related to the ArriveCan app to be cancelled following revelations that the Royal Canadian Mounted Police (RCMP) is investigating alleged misconduct in an outsourced government contract. The contract in question involves three technology firms—GCStrategies, Dalian Enterprises, and Coradix—which are also connected to the $54 million ArriveCan app. Housakos described the whole arrangement as a “deliberate get-rich-quick scheme” for those with connections to the Trudeau government. He called on the government to cancel fines that were issued as a result of the flawed and fraudulent app.
Senator Housakos made his remarks during a debate in the Senate on October 5, addressing Senator Marc Gold, the Government Representative in the Senate. He highlighted the hefty fines imposed on Canadians when the ArriveCan app was implemented during the COVID-19 pandemic. Housakos questioned whether the government would finally take action and cancel the fines in light of the ongoing investigation.
In response, Senator Gold defended the ArriveCan app, stating that it was designed to protect Canadians. He criticized Housakos for insinuating that the app was about “lining pockets,” calling it inappropriate and unseemly.
The RCMP investigation was initiated after two tech entrepreneurs who worked for the Canada Border Services Agency (CBSA) raised concerns about improper contracting practices and close ties between senior government officials and the three technology firms. The entrepreneurs, Amir Morv and Ritika Dutt of Botler, alerted CBSA to these concerns in September 2021 and provided a more detailed report in November. They alleged that GCStrategies’ managing partner, Kristian Firth, approached them on behalf of his “client,” CBSA’s then-director general Cameron MacDonald. However, they later discovered that their software funding was approved through a CBSA contract with another company, Dalian Enterprises, of which they had no prior knowledge.
The entrepreneurs also claimed that Coradix submitted forms to CBSA about their work experiences without their consent. They said that MacDonald instructed them to work with Firth, while Firth urged them to praise MacDonald for his role in establishing the relationship between CBSA and Botler. MacDonald denied all allegations of wrongdoing.
CBSA has referred the matter to its Professional Integrity Division and the RCMP following Botler’s allegations of misconduct. The agency has also initiated an internal audit of contracting and increased oversight over the granting of contracts. CBSA senior spokesperson Rebecca Purdy stated that the agency would act on the findings of the investigations and implement strengthened controls and oversight over contracting.
Conservative MP Kelly McCauley has called for new scrutiny of the ArriveCan app in light of the recent allegations. He alleged that nefarious contractor practices contributed to inflated costs for taxpayers and collusion between consultants and government employees. McCauley has requested that the Standing Committee on Public Accounts hear testimony from the Auditor General regarding these allegations.