Liberals awarding massive contracts with ‘glaring disregard’, auditor general reports
Following the tabling of three performance audits in the House of Commons, AG Karen Hogan told reporters the Liberals have shown a “glaring disregard” for contracting policies.

TCS Wire

June 4, 2024

Canada’s Auditor General has once again waved red flags regarding the federal Liberals’ contracting practices, particularly with those involving McKinsey & Company. 

Liberals awarding massive contracts with ‘glaring disregard’, auditor general says

Following the tabling of three performance audits in the House of Commons, AG Karen Hogan told reporters the Liberals have shown a “glaring disregard” for contracting policies.

About 70% of their contracts with McKinsey & Company were non-competitive, with some appearing to be specifically designed for McKinsey to win. 

“There was a frequent disregard of policies and guidance that was evident by missing bid evaluations and poorly justified use of non-competitive approaches,” Hogan said.

Her report further reveals that for 19 out of 33 contracts examined, there was insufficient information showing that the government got fair value for its money, meaning Canadian taxpayers are likely paying more than they should.  

The Auditor General also found that in 30 out of 33 cases she examined, the feds failed to adequately estimate project costs before receiving contractor bids. 

The report adds fuel to allegations of a cozy relationship between the Liberals and McKinsey, whose work has surged since 2017.

The Opposition Conservatives have criticized the government’s relationship with McKinsey for several months, suggesting potential backroom dealings and undue influence.

ArriveCan also a disaster

The same Auditor General previously criticized the Liberals for mismanagement related to ArriveCan, exposing severe flaws in their handling of contracts and resources.

In February, Hogan told a committee that the Liberals’ mishandling of the ArriveCAN app project also represented “glaring disregard for basic management and contracting practices.”

The auditor general’s testimony painted a picture of a project plagued by poor planning, oversight, and execution, with Hogan stating that COVID was no excuse. 

“An emergency does not mean that all the rules go out the window, and that departments and agencies are no longer required to document their decisions and keep complete and accurate records,” she said.

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