The Canadian government is facing scrutiny this week after revelations of potentially fraudulent billings by subcontractors and ongoing issues with the ArriveCAN app. The auditor general, Karen Hogan, could not determine the exact cost of creating ArriveCAN, which was rushed out in 2020 to collect information from international travelers during the Covid-19 pandemic. The app, originally budgeted at 2.3 million dollars, is estimated to have cost around 60 million dollars.
In response to these issues, federal officials have announced measures to tighten oversight of government procurement, particularly for software services. The government has asked the Royal Canadian Mounted Police to investigate 5 million dollars in invoices from three software contractors for potential fraud. These suspicious billings are not related to ArriveCAN.
The political debate surrounding ArriveCAN has brought attention to the practice of companies acting as middlemen in government contracts, taking a large portion of the contract’s value without actually creating software. One such company, GC Strategies, received an estimated 19 million dollars from the ArriveCAN project. After the auditor general’s report, the government suspended all dealings with GC Strategies.
Professor Daniel Henstra, a political scientist, believes that the government in Canada contracts out too much work, leading to situations like the ArriveCAN scandal. While he acknowledges the benefits of using contractors for certain projects, he also highlights the risks of fraud and inefficiency in the system.
Despite these challenges, Professor Henstra believes that most government contracts are conducted in good faith and serve the public interest. However, the recent issues with ArriveCAN and fraudulent billings highlight the need for greater transparency and oversight in government procurement processes.
