In response to allegations of conflict-of-interest surrounding its founder David Yeo’s recent employment at the Department of National Defence, Dalian Enterprises explained the steps taken to avoid potential conflicts.
The company, involved in developing the controversial $60 million ArriveCan app, detailed measures including Yeo’s conflict-of-interest filing, his resignation as a director and officer, and placing his shares in a blind trust due to Dalian’s primary customer being the federal government.
“From 2002 until September 2023, Yeo, a former military member, was not an employee of the government of Canada in any capacity,” said Dalian on Thursday in a statement. They added that Yeo “only provided IT professional services on a contract basis through Dalian to the Department of National Defence,” reports The Canadian Press.
This statement marks Dalian’s first public response following a CTV News report last month on Yeo’s employment status and Dalian’s previous work on ArriveCan, for which the government paid $7.9 million as part of the app’s nearly $60-million cost.
The Defence Department has since suspended Yeo and launched an internal investigation, while Public Services and Procurement Canada suspended Dalian’s security status, barring it from federal contracts.
“Yes – David Yeo, CEO of Dalian, was using Mark Whelan to lobby the Department of National Defence for contracts while working with them. Whelan was formerly the Director of Procurement at Shared Services and the DND. Both worked with Materiel Group,” said Andy Lee, who has been following this ArriveCan scandal from the beginning.
Good for CTV for catching up.
Yes – David Yeo, CEO of Dalian, was using Mark Whelan to lobby the Department of National Defence for contracts while working with them. Whelan was formerly the Director of Procurement at Shared Services and the DND. Both worked with Materiel Group. https://t.co/ShOr62jrKJ pic.twitter.com/z1E6QpGlou
— Andy Lee – Special Rebel Rapporteur (@RealAndyLeeShow) February 29, 2024
Yeo, in his testimony before a House of Commons committee in October, emphasized his integrity, saying, “During my 36-year career with the Canadian army… I was held to the highest levels of integrity, and of course, I continue to conduct myself in this manner today.”
Canada’s auditor General Karen Hogan, speaking at a committee hearing, noted, “The disclosure is maybe not always happening, and when the disclosure happens you can take the measures that you need.” She previously stated it is impossible to know the full cost of the ArriveCan app, due to a missing paper trail, only to say the estimated cost is at least $60 million.
