Federal departments repeatedly ignored basic contracting rules while handing out over $92 million in public contracts to Ottawa-based staffing company GCStrategies, according to a scathing new report from Auditor General Karen Hogan, released on Tuesday.
The audit, tabled in the House of Commons, slams federal organizations for bypassing procurement policies meant to protect taxpayers, ensure fairness, and deliver value for money.
From 2015 to 2024, 31 federal entities — including the Treasury Board Secretariat and National Defence — issued 106 professional services contracts to GCStrategies, paying out more than $64 million. That includes contracts tied to the now-infamous ArriveCAN app scandal. GCStrategies, notably, doesn’t even do the technical work itself — it simply resells access to subcontractors.
The audit found that in 21% of contracts, federal departments couldn’t show that workers had valid security clearance. In some cases, contractors were granted access to government systems without proper vetting, putting sensitive data and systems at risk. In 33% of contracts, the feds couldn’t confirm the workers even had the qualifications to do the job.
Worse, nearly half the contracts lacked proof that the work was ever done, yet public servants approved full payments anyway — a direct violation of the Financial Administration Act. In one case, a department paid $22,000 for three deliverables but could only show evidence for one. In another, a department paid $3.3 million while having timesheets for just one of 25 workers.
The report doesn’t offer new recommendations. “The rules are already there,” Hogan said. “They’re just not being followed.”
Despite prior audits flagging similar issues, federal departments continue to hand out contracts without bids, skip key oversight steps, and fail to monitor performance, says Hogan.
GCStrategies is now banned from bidding on new federal contracts after its security clearance was revoked earlier this year — but the damage is done.
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How long will it be cleaning up behind Justin and the corruption he was involved in.
It’s happening everywhere. Look at the Quebec SAAQ application. Please don’t equate government management with politicians. This will happen with any government center or right. It’s the lowest system that is flawed.
Finally someone gets it.
Love the way media captions it as, "Ottawa Broke Rules" and yet here we are with 80% of the same people running around "Ottawa" still making the rules…/s