‘Fairly Common’ for Public Servants to Get Gov’t Contracts, Says ArriveCan Supplier

A smartphone set to the opening screen of the ArriveCan app is seen in a file photo. (The Canadian Press/Giordano Ciampini)

A key ArriveCan contractor told MPs it’s “fairly common” for federal employees to have side jobs as government contractors.

David Yeo made the comments during his appearance before the Public Accounts Committee on March 19, where he faced questions on whether he worked a federal contractor while continuing employment at his company, Dalian Enterprises.

“I have been around the department forever. Everybody has their day-to-day work, and maybe they have a little side gig at night doing something else,” Mr. Yeo said, as first covered by Blacklock’s Reporter.

Mr. Yeo told the committee that he was not an employee of the Department of National Defence (DND) when he founded Dalian in 2002, but was a contractor providing IT services to the DND. He said in September 2023, long after ArriveCan had been completed, that his role changed from a consultant providing professional security services to a public service employee.

“Due to this change, I took steps to address any conflict-of-interest concerns by entering into a confidentiality non-disclosure, no-access agreement with Dalian, in which I agreed to refrain from participating in any Dalian proposals, projects, contractors, ventures, or any other activity relating directly or indirectly to the [DND],” he told the committee.

The $59.5 million ArriveCan application was used to check the COVID-19 vaccination status of travellers entering Canada. It has become the centre of a political firestorm in recent months due to its exorbitant costs, and a damning auditor general’s report that found proper contracting and management practices around the app at several government agencies were not followed, while key documents were missing.

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Mr. Yeo was suspended from the Department of National Defence in March 5, 2024, a day after Ottawa announced a review of its program supporting indigenous contractors. Mr. Yeo’s company has received a total of $91 million in federal contracts since 2015, according to the Globe and Mail, including 7.9 million for its work on the ArriveCan app.

The RCMP had said it is investigating allegations made by another IT company, Botler AI, that worked with the Canada Border Services Agency and alongside ArriveCan contractors. The RCMP says it’s also “currently assessing” the available information around ArriveCan in order to “take appropriate action.”

MPs Question Role With Dalian

During his testimony, Mr. Yeo was questioned by Conservative MPs on how distant he remained from his company while employed at the DND. Conservative MP Larry Block pointed out that during his previous testimony at the committee in October, he introduced himself as Dalian’s founder and president but did not mention his role at DND.

“You said absolutely nothing about the fact that you were a public servant. So it begs the question, why would you withhold that information from Canadians,” Mr. Brock said.

Mr. Yeo responded at length, saying his previous testimony had “zero to do” with his employment at Dalian, as his DND job was separate.

“You gave the impression that you are still an active participant in this two-person company [Dalian]. With respect, I completely disagree with your word salad of an explanation, because it just doesn’t add up,” Mr. Brock responded.

When Conservative MP Garnett Genuis asked Mr. Yeo if he was still on Dalian’s board of directors when he previously testified before the committee, he responded that the company was “in flux during that time period” as they had 60 days to change his role at the company.

“You either were on the board of directors, or you weren’t on the board of directors,” Mr. Genuis said, pointing out that his LinkedIn account still listed him as such at the time.

Mr. Yeo said LinkedIn was a “non-authoritative source,” and that his profile did not describe every job he had held.

Conservative MP Michael Barrett raised the point that Mr. Yeo received a consulting contract from the federal government on Sept. 19, which was the same day he began his work as a public servant. “I find that very interesting,” Mr. Barrett said.