It was the Treasury Board Secretariat (TBS), chaired by Mona Fortier, that released these preliminary results on Friday morning. A final report will be prepared by June 30, 2023.
“There is evidence that certain administrative procedures and requirements have not been consistently followed. »
— A quote from the Treasury Board Secretariat
This announcement comes at a time when all media is on the other side with the visit of United States President Joe Biden to Canada and the announcement of the Roxham Road closure beginning tonight.
The examiners tapped the fingers of several ministries
Departmental internal auditors, who are independent, found missing signatures or critical documents on several engagements. For example, a contract with McKinsey was verbally renewed at the Department of Veterans Affairs.
National Defense sometimes paid McKinsey before the services were rendered, and the risks of conflicts of interest were not adequately monitored when it was determined that reservists were working for the firm.
The consulting firm McKinsey has received tens of millions of dollars from the Canadian federal government in recent years.
Photo: AFP / Fabrice Coffrini
Evidence was found at the Canada Border Services Agency (CBSA) that on two contracts McKinsey was considered by management before the RFP was issued.
“This raises questions about the overall fairness and openness of the processes, as it could appear that McKinsey’s bids were favored by the CBSA. »
— A quote from Marianne Thouin, Chief Audit and Evaluation Officer at CBSA
In addition, again at the CBSA, no documentation was available to clearly show that all safety clearances had been obtained before work began, or that those responsible for monitoring the contract monitored and oversaw the contractor’s performance.
No political interference, according to the preliminary report
According to TBS’s preliminary observations on the results of department audits, the departments show no evidence of political interference and general adherence to values and ethical commitments.
Blame the prime minister’s office
The Privy Council Office’s audit, conducted by Justin Trudeau, shows that a contract awarded to McKinsey in 2017-2018 was not released until 2022-2023, five years later, and documents were not retained.
For this $21,900 contract, Chief Audit and Evaluation Executive Claudette Blair found no evidence that the price had been verified as fair and reasonable.
Justin Trudeau’s office has also engaged McKinsey’s services.
Photo: The Canadian Press/Justin Tang
This contract aims to provide the Prime Minister’s Office with an analysis of the possible implications of various disruptive technologies and trends (artificial intelligence, blockchain, biometrics, Internet of Things, autonomous vehicles) for the government.
“The contract may not have been in force before the supplier started work. »
– A quote from Claudette Blair, Chief Audit and Evaluation Officer, Privy Council Office
McKinsey was also paid for the full amount when the auditor found he had not delivered everything that was expected in the contract.
Corrections made and other ongoing investigations
After these initial observations, the affected managers implemented action plans to avoid these types of errors. Since the Liberals came to power, a dozen departments have contracted McKinsey for a total of over $100 million.
A more detailed examination of the data from all these contracts by the internal auditors of the departments is still pending. These various expenditures have come under criticism in recent months for being 30 times higher than under the previous Conservative government.
Note that Public Services and Procurement Canada’s preliminary review is ongoing.
No audit has been published for the state bodies. In addition, contracts have been signed with McKinsey by the Business Development Bank of Canada and the Infrastructure Bank of Canada.
These internal reviews complement the work of the Office of the Auditor General and the Procurement Ombudsman, as well as an ongoing study within the Standing Committee on Government Operations and Estimates.