The Liberal government is seeking $198,000 in damages from the company behind the ArriveCan app scandal, according to government records.
Conservative MP Larry Brock filed an Inquiry of Ministry in June to ask about the Canadian government’s lawsuits against GC Strategies, the company behind the ArriveCAN app that was used during the COVID-19 pandemic to obtain health information, such as vaccination status, from travellers entering and leaving Canada.
The ArriveCan app cost between $54 million to $59.5 million, with federal auditors being unable to determine the precise amount. The app became the subject of extensive news coverage and Parliamentary committee meetings due to controversies around the app’s cost and development.
On Sept. 15, a response was provided to the inquiry that said the federal government is seeking just under $200,000 in damages, as well as “pre-trial and post-judgement interest on damages claimed” and “other relief as the court deems just.”
ArriveCan had gained a poor reputation following its initial release for glitches, and the federal government made the app optional in June 2022. The House of Commons passed a motion in November 2022 for the auditor general to conduct a performance audit of ArriveCan.
Auditor General Karen Hogan later reported that the app had “probably some of the worst financial record-keeping that I’ve seen,” and that the Canada Border Services Agency, Public Health Agency of Canada, and Public Services and Procurement Canada showed a “glaring disregard for basic management and contracting practices” throughout the app’s development.
Hogan concluded that the contracts awarded by the government and the payments made to GC Strategies were not in accordance with procurement policies, and “value for money for these contracts was not obtained.”
The Committee on Government Operations and Estimates then conducted months of investigations into ArriveCan, which culminated in GC Strategies partner Kristian Firth being called to the House of Commons and admonished for failing to answer the committee’s questions. The RCMP said in 2024 it had “multiple” ongoing investigations into ArriveCan.
Public Services and Procurement Canada determined on June 6 that GC Strategies was ineligible to enter into contracts or property agreements with the federal government for the next seven years. The agency previously suspended the company’s security status in March 2024, preventing it from participating in federal procurements with security requirements.
In June, a motion calling for GC Strategies to reimburse the $64 million to taxpayers within 100 days was passed in the House of COmmons, despite the Liberals voting against it. The motion was non-binding.
