Investigation Reveals Numerous Government Contracts for ArriveCan Developer Company; Now Ineligible for Further Engagements

Public Services and Procurement Canada (PSPC) has verified that GC Strategies Inc., the recipient of the initial ArriveCan contract, has secured 34 government contracts since 2015, amounting to $59.8 million. However, it is now ineligible for further contracts.

According to PSPC spokesperson Michèle LaRose, “all of these contracts have either expired or have been suspended.” The disclosed amount excludes contracts from other government entities. PSPC has identified a few “lower-value” contracts outside its authority, estimated at approximately $50,000, which are under review.

LaRose stated, “PSPC is informing those departments of our concerns and actions so they may take appropriate action within their authorities.” Additionally, GC Strategies is no longer qualified to participate in PSPC and Government of Canada tenders.

This revelation follows a report by LaPresse stating that since 2015, GC Strategies Inc. had been granted 140 contracts by the Liberal government, totaling $258 million. PSPC, however, cannot confirm this figure.

Recent scrutiny on the company’s ties to the government intensified after Auditor General Karen Hogan released a critical report on the ArriveCan app’s management and contracting practices. The report highlighted concerns about a non-competitive process that led to the initial contract with GC Strategies and alleged mismanagement by border agency employees, inflating the app’s cost to an estimated $60 million.

Conservative Leader Pierre Poilievre has called for an expanded RCMP investigation in response to the latest developments. The RCMP confirmed it is investigating a matter referred by the Canada Border Services Agency (CBSA) based on allegations brought forward by Botler AI, a firm not involved in ArriveCan but flagging concerns about related contracting practices.

In a statement, the RCMP mentioned being “aware” of the Auditor General’s performance audit and is assessing available information, including the audit report. Prime Minister Justin Trudeau has faced questions in the House of Commons about the app, with Poilievre seeking answers and expressing concern about irregular contracting and potential rule-breaking. Trudeau emphasized the need for relevant authorities to investigate the matter.