‘Negative Trends’: Procurement Ombudsman Finds Dozens of Unethical Federal Contracting Instances

Alexander Jeglic says stakeholders have raised concerns of federal officials behaving in ways inconsistent with the Values and Ethics for the Public Sector.
‘Negative Trends’: Procurement Ombudsman Finds Dozens of Unethical Federal Contracting Instances
The Parliament Buildings are seen beyond the Alexandra Bridge in Ottawa on Sept. 7, 2022. The Canadian Press/Adrian Wyld
Matthew Horwood
Updated:
0:00
There have been dozens of instances of unethical federal contracting cited by whistleblowers in the past year, according to Procurement Ombudsman Alexander Jeglic’s annual report.
“This year, stakeholders contacted my office 30 times with concerns about the behaviour of federal officials being inconsistent with the Values And Ethics Code For The Public Sector. Concerns about questionable federal procurement activities have negatively impacted public trust,” wrote Mr. Jeglic.

“I remain concerned regarding negative trends related to the lack of competitive processes and deficient documentation practices that continue to pose problems and undermine transparency in federal procurement.”

Mr. Jeglic, whose office reviews the practices of federal departments for acquiring goods and services, said the contracting process is “unnecessarily complex,” which has been a contributing factor in the lack of participation in solicitations since 2018.

Mr. Jeglic also highlighted that the percentage of competitive solicitations resulting in only one bid had dropped from 52 percent to 36 percent, and hovered around 34 percent from 2022-23, according to Blacklock’s Reporter.

“This number remains much too high and must be addressed. The benefits of competition are greatly reduced when no competitive tension exists,” the report said.

Mr. Jeglic’s office has also experienced issues regarding transparency, often encountering difficulties in gaining access to procurement documentation or reliable contracting data. “Concerns about questionable federal procurement activities have negatively impacted public trust in the federal procurement system, and must be addressed,” he said.

To date, no parliamentary committee has investigated COVID-19 contracting by lobbyists. In 2021, Liberal and Bloc Québécois MPs on the House of Commons ethics committee rejected a motion for a probe by Conservative MP John Brassard by a 6–4 vote.

“We know there’s been $500 billion in pandemic spending that has occurred,” Mr. Brassard said at the time, according to Blacklock’s. “I think it’s important for Canadians and indeed important for this committee to have the confidence pandemic spending has been done in an open, transparent and accountable manner.”

A subsequent 2023 spot audit by the Procurement Ombudsman found more than a tenth of COVID contracts approved by the Department of Health failed to comply with rules. The department had issued a total of 17,000 contracts.