Global Affairs Canada drew public concern last year over plans to purchase security equipment from a Chinese state-owned company. A recent review found that the department does not usually consult security experts prior to procurement.
But the deal raised security-related concerns due to Nuctech’s links to the highest levels of the Chinese Communist Party (CCP) and to the Chinese military.
As criticism mounted, Global Affairs spent $250,000 to hire consultation firm Deloitte to review the department’s procurement process.
“The department has a procurement planning process for significant procurements and the plan is presented to the Departmental Contract Review Board. The security subject matter experts (SME), however, are not typically included in the procurement planning process,” Deloitte concluded in its report.
Deloitte suggested that Global Affairs develop guidelines for considering “specific security threats and vulnerabilities.” It also recommended enlisting security experts in future procurement assessment processes in order for the department to “keep abreast of evolving security threats around the globe.”
Nuctech was founded by Hu Haifeng, son of former CCP leader Hu Jintao. The company has connections to the Party and to the People’s Liberation Army.
The company is dubbed the “Huawei of airport security” for providing screening for cargos and baggage. However, U.S. officials have expressed concerns that its system can give the CCP easy access to personal data and sensitive commercial information.
“Despite the Liberal attempts, we got the Communist Chinese firm blocked from this purchase,” McCauley wrote.