Poilievre Says ArriveCan Process Was ‘Corrupt’ Following Auditor General’s Report

Conservative Party leader Pierre Poilievre rises during question period in the House of Commons on Parliament Hill in Ottawa on Dec. 13, 2023. (The Canadian Press/Sean Kilpatrick)

Conservative Leader Pierre Poilievre is calling the development process for ArriveCan “corrupt” after the release of a critical report from the Auditor General that faulted government management of the mobile application.

Mr. Poilievre told reporters that the RCMP needs to get to the bottom of the “ArriveScam” scandal which he said “went 750 times over budget.”

“We want the truth to come out and we want the police’s findings to be complete and public, so that Canadians know about all the corruption and mismanagement in the Trudeau government,” he told reporters Feb. 12 in Ottawa.

The Auditor General’s Feb. 12 report on the ArriveCan application faulted the management and contracting practices of several government agencies, including the Canada Border Services Agency (CBSA), Public Health Agency of Canada (PHAC), and Public Services and Procurement Canada (PSPC).

Auditor General (AG) Karen Hogan said she was “deeply concerned” about the absence of detailed records that could account for financial expenditures on the app.  

“The Canada Border Services Agency’s documentation, financial records, and controls were so poor that we were unable to determine the precise cost of the ArriveCAN application,” Ms. Hogan said in her report. “Using the information that was available, we estimated the cost at approximately $59.5 million” which contrasts with the CBSA’s previous estimate of $54 million.

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The report also criticized the agencies for failing to adhere to basic management and contracting norms during the app’s development and implementation.

At the Feb. 12 press conference, Mr. Poilievre was challenged by reporters on his characterization of ArriveCan as “corrupt,” since nothing to that effect was raised in Ms. Hogan’s report. It was her explicit aim not to interfere with ongoing CBSA and RCMP investigations into the app.

“That might be one of the reasons why the Auditor General didn’t use the same language as I did, because certain parts of the scandal are not covered in this audit,” he said. “We need the police to get to the bottom of it.”

Opposition Concerns

Other opposition parties also raised concerns with the AG’s report as Ms. Hogan appeared before the House of Commons public accounts committee on Feb. 12.

“Is it customary practice that the contractor tells an agency what to do?” asked Bloc Québécois MP Julie Vignola.

Ms. Hogan’s response touched on the role of GC Strategies in the affair, the general contractor hired to create the app.

“No, our observation is that GC Strategies was involved in setting the requirements of a competitive contract,” Ms. Hogan responded, “and this, in my opinion should not have happened.”

Ms. Hogan said the CBSA favoured a potential supplier by giving them an advantage. Only GC Strategies truly satisfied the criteria, she said, which were excessively restrictive and, in her view, hindered competition.

At the same meeting, NDP MP Blake Desjarlais raised a similar concern, calling it a “deeply troubling fact.”

“We need to reflect on the ability of private actors to directly influence the competition of a bid that they are participating in,” he said.

“Massive, massive red flag in my perspective, because not only is it an abuse of the rules and regulations that are exist for competitive bids, but it masks the true intent of the public service in some ways.”

Investigations

Ms. Hogan’s report follows extensive investigations by the Standing Committee on Government Operations and Estimates (OGGO) into the development costs of the app. The committee has raised concerns about the CBSA’s procurement practices.

A report by Procurement Ombudsman Alexander Jeglic, released on Jan. 29, also found significant issues with the ArriveCan project, noting that 76 percent of contractors hired for the application did not actually contribute work to it, which raised “serious concerns.” Mr. Jeglic also highlighted concerns regarding the frequent absence of key documents associated with the development of ArriveCan.

MPs from the Liberal, NDP, and Bloc Quebecois parties decided to halt committee hearings on the ArriveCan application on Feb. 7, citing concerns that continuing the hearings might jeopardize ongoing CBSA and RCMP investigations into the matter. This decision was influenced by a preliminary statement of facts related to the CBSA’s investigation, which was described as “scary” by one MP.

In a Feb. 12 release, the CBSA noted that Ms. Hogan’s report highlighted “unacceptable gaps” in the management processes, roles, and controls at the CBSA, Public Services and Procurement Canada (PSPC), and the Public Health Agency of Canada (PHAC), which are being taken “seriously.”

The CBSA says that some recommendations from the report have already been implemented, with the CBSA committed to further actions to align management practices with policies and ensure public confidence.

These new CBSA measures include: first, the creation of an Executive Procurement Review Committee for additional oversight; second, requiring employees to disclose interactions with potential vendors; and third, enhancing the procurement group’s capacity to oversee activities and establish a centre of expertise for better understanding of obligations and authorities.

Ms. Hogan will appear again on Feb. 13 before the PACP, along with senior officials from the departments involved in ArriveCan, including CBSA President Erin O'Gorman.