A simple mobile application with an initial estimated cost of $80,000 has turned into a $59.5 million scandal as law enforcement along with federal government bodies probe the now infamous ArriveCan app.
The application, introduced in April 2020, was created during the pandemic to track the COVID-19 vaccination status of travellers entering Canada. It quickly received a frosty reception from those forced to deal with disruptive glitches and long wait times to enter the country. The controversy expanded when MPs began digging into the unexpectedly high costs and questionable contracting practices linked to the app.
Several investigations have been completed and several more are ongoing. Here’s a look at where they stand.
Reports
Following months of negative headlines surrounding ArriveCan, the House of Commons passed a motion requesting the auditor general to conduct a performance audit of the app in November 2022.Auditor General Karen Hogan released her long-awaited report on Feb. 12, in which she criticized the government bodies responsible for overseeing the app’s procurement, development, and implementation. Ms. Hogan said the Canada Border Services Agency (CBSA), Public Health Agency of Canada (PHAC), and Public Services and Procurement Canada (PSPC) showed a “glaring disregard for basic management and contracting practices” with ArriveCan.
Her report estimated the app cost $59.5 million but said the figure may be inaccurate as it was based only on available documents. Ms. Hogan said data management for ArriveCan was “probably some of the worst financial record-keeping that I’ve seen.”
The auditor general told MPs on the Committee on Government Operations and Estimates (OGGO) on Feb. 14 that she had met with the RCMP to discuss her report findings and told the national police force she would provide relevant documents at its request.
Ms. Hogan’s report came two weeks after a report released by Procurement Ombudsman Alexander Jeglic which found that 76 percent of the contractors hired to work on ArriveCan did no actual work on their contracts. The procurement watchdog also said key documents related to the app’s contracting and development were often missing.
Mr. Jeglic’s report also found over a dozen cases where the task authorization under the ArriveCan contract didn’t demonstrate that the proposed resource met the criteria to do the work. Additionally, it found “numerous examples” of suppliers copying and pasting the mandatory requirements as their project experience.
Ongoing Audits and Investigations
Michel Lafleur, CBSA’s executive director of professional integrity, is also investigating ArriveCan. The preliminary statement of facts, obtained by Conservative MP Larry Brock, said CBSA found employee misconduct so serious that it required the RCMP to investigate criminal charges of fraud and bribery.The RCMP confirmed in October 2023 that it was investigating the potential misconduct of three companies that worked on the ArriveCan app: GC Strategies, Dalian, and Coradix. The auditor general’s report estimated that GC Strategies received $19.1 million for work as of March 31, 2023, while Dalian, in a joint venture with Coradix, received $7.9 million.
The allegations under RCMP investigation were brought forward by Montreal-based IT company Botler AI. The company, which worked on a 2019 CBSA pilot project and dealt with contractors and officials involved with ArriveCan, testified before the OGGO committee in October 2023 that they witnessed “corruption” and “fraud” within CBSA.
At the time, government officials believed that GC Strategies had received $11.2 million for the ArriveCan project and that Dalian and Coradix were paid a combined $4.3 million.
The RCMP told The Epoch Times it received a Feb. 13 letter from Conservative Leader Pierre Poilievre asking the force to expand its current criminal investigation into the contracting practices of businesses involved in ArriveCan.
“The RCMP is assessing the available information, including the Auditor General’s performance audit report and will take appropriate action,” said Sgt. Kim Chamberland.
On Feb. 14, La Presse reported that GC Strategies has scored 140 government contracts worth some $258 million since 2015, 46 of which were awarded without competition.
The OGGO committee, which has been investigating ArriveCan since October 2022, on the same day ordered a 10-year audit of all federal payments to GC Strategies. The committee passed the motion sponsored by Conservative MP Stephanie Kusie asking the auditor general to examine “all payments to GC Strategies and other companies incorporated by the co-founders, and all contracts with the Government of Canada.”
Procurement Minister Jean-Yves Duclos said Feb. 14 that all contracts with GC Strategies had been put on hold since November 2023, particularly to let the CBSA review them. However, PSPC told The Epoch Times later the same day that some contracts with other federal entities are still ongoing and that the department has contacted them to express concern.
