ArriveCan Fines Should Be Axed With Revelation of RCMP Probe Into Agency Contract: Senator

Senator makes comment as the RCMP investigates a CBSA outsourced contract that involves the same companies at centre of $54 million ArriveCan app.
ArriveCan Fines Should Be Axed With Revelation of RCMP Probe Into Agency Contract: Senator
A smartphone set to the opening screen of the ArriveCan app is seen in a file photo. The Canadian Press/Giordano Ciampini
Isaac Teo
Updated:
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A senator says outstanding fines related to the ArriveCan app should be cancelled after revelations that the RCMP is probing alleged misconduct in an outsourced government contract.

“Yesterday we learned that the Royal Canadian Mounted Police is investigating the outsourcing of a Canada Border Services Agency contract involving the same companies at the centre of the $54 million ArriveCAN boondoggle,” said Conservative Sen. Leo Housakos during debate at the Senate on Oct. 5.
He was referring to three technology firms—GCStrategies, Dalian Enterprises, and Coradix—as reported by the Globe and Mail on Oct. 4. All three are based in Ottawa and involved in work related to the ArriveCan app. The app, initially projected to cost $80,000, ballooned to $54 million, becoming the subject of criticism by opposition parties.

In his remarks addressed to Sen. Marc Gold, who is the Government Representative in the Senate, Mr. Housakos said heavy fines were levied against Canadians when the app was implemented in full force during the COVID-19 pandemic.

“This is the same boondoggle that saw Canadians, who were exercising their right to return home, slapped with fines as high as $8,500. Then they were threatened with more fines if they were caught breaking the quarantine—as high as $750,000.”

He alleged that the whole arrangement was “more like a deliberate get-rich-quick scheme” for those “with connections to the Trudeau government.”

“Given the latest news regarding it, will your government finally do the right thing and cancel the outstanding fines that were issued as a result of this deeply flawed and—as we now know—fraudulent app?” Mr. Housakos said.

Conservative Sen. Leo Housakos in a file photo. (Adrian Wyld/The Canadian Press)
Conservative Sen. Leo Housakos in a file photo. Adrian Wyld/The Canadian Press
Mr. Gold replied that the ArriveCan app was designed to protect Canadians. He added that it was “inappropriate and unseemly” of Mr. Housakos to allege or insinuate that “this was about lining pockets.”

Allegations

The Globe’s report said the RCMP started their investigation after two tech entrepreneurs who performed work for the Canada Border Services Agency (CBSA) warned the agency that senior government bureaucrats were allegedly holding improper contracting practices and having close ties with GCStrategies, Dalian Enterprises, and Coradix.

The Epoch Times reached out to the RCMP but didn’t hear back by publication time.

Amir Morv and Ritika Dutt, co-founders of Botler, a small Montreal-based software company, alerted the CBSA of their concerns in September 2021, and again in a more detailed report the following November, the Globe reported.

According to the Globe, Mr. Morv and Ms. Dutt were approached by GCStrategies’ managing partner Kristian Firth via LinkedIn in November 2019. At the time, Mr. Firth allegedly told the two he was reaching out to them on behalf of his “client” who was looking into “starting a proof of concept project” in its department, the Globe reported. Mr. Firth would allegedly explain to them later that the client was CBSA’s then-director general Cameron MacDonald, the Globe said.

Mr. Morv and Ms. Dutt say to their shock, they eventually learned that the funding for their software was approved through a CBSA contract with another company, Dalian Enterprises, which they hadn’t heard of up to that point, the Globe said.

The two also said they discovered that Coradix submitted forms to CBSA about their work experiences without their knowledge or permission, reported the Globe.

The Globe reported Mr. Morv and Ms. Dutt said they were told by Mr. MacDonald to “please work with Kristian [Firth],” while Mr. Firth would urge them to praise Mr. MacDonald as the “brainchild” who created the relationship between CBSA and Botler. The Globe added that Mr. MacDonald denied all allegations of wrongdoing.

CBSA senior spokesperson Rebecca Purdy says the agency has referred the matter to its Professional Integrity Division (internal affairs) for investigation, and to the RCMP, after it received allegations of misconduct from Botler in fall of 2022.

“Ahead of the outcomes of these processes, the information provided was sufficient to take action,” said Ms. Purdy in a statement provided to The Epoch Times on Oct. 7.

She added that the agency has launched an internal audit of contracting. It has also increased oversight over the granting of contracts, and is requiring employees with contracting authority to retake procurement certification courses by the end of the fall, Ms. Purdy said.

“The CBSA will act on any investigation findings and will ensure strengthened controls, oversight, and stewardship over contracting,” the spokesperson said.

The Epoch Times reached out to GCStrategies, Dalian Enterprises, Coradix, Mr. Firth, and Mr. MacDonald for comment but did not hear back by publication time.

‘New Scrutiny’

Conservative MP Kelly McCauley is calling for “new scrutiny” on the ArriveCan app.
“The new allegations … show nefarious contractor practices were used to drive up the cost to taxpayers as well as collusion between consultants and Government of Canada employees,” he alleged in a letter addressed to Conservative MP John Williamson, chair of the Standing Committee on Public Accounts, on Oct. 6.

“Given the mandate of our committee to review and report on all Auditor General reports, it is necessary to hear testimony from the Auditor General on these allegations at the earliest opportunity.”

Noé Chartier contributed to this report.