
Procurement Minister Joël Lightbound pointed to a seven-year ban as evidence of government action against the ArriveCan app contractor.Giordano Ciampini/The Canadian Press
The House of Commons approved a motion Monday calling on the government to impose a lifetime procurement ban for ArriveCan contractor GCStrategies.
The Conservative motion was adopted in a 172-165 vote, with the support of the Bloc Québécois, the NDP and the Green Party, over the objections of Liberal MPs.
The Conservatives put the matter forward last week on an opposition day that allowed the party to propose a motion for debate and ultimately a vote.
The Conservative motion, which is non-binding, also calls on the government to “get taxpayers their money back” within 100 days, but doesn’t outline how this should occur.
GCStrategies is a two-person IT staffing company founded in 2015. Its business model involves securing federal contracts and then subcontracting the work to other individuals and companies.
It has been awarded 106 contracts with an estimated combined value of $92.7-million and has been paid $64.5-million.
ArriveCan’s main contractor GCStrategies paid without ensuring work was done: A-G
The company was the lead contractor on the government’s ArriveCan app project for cross-border travellers, which was widely criticized for cost overruns.
Auditor-General Karen Hogan has released two reports criticizing federal oversight of contracts with GCStrategies, including a report last week that examined all of the company’s contracts.
Her latest report said officials were often unable to prove that the company completed the work it was paid for or that the company’s subcontractors had proper security clearances.
Joël Lightbound, the Minister of Government Transformation, Public Works and Procurement, told MPs last week and again Monday that the Liberals have taken action by imposing a seven-year ban preventing GCStrategies from obtaining federal contracts, while also taking legal action and referring information to the RCMP.
“Let me be absolutely clear: We will never tolerate any misbehaviour or misconduct from our suppliers or their subcontractors,” he said during Question Period prior to the vote.
The government’s announcement earlier this month of the seven-year ban did not provide a detailed explanation for the decision. It said it followed “a thorough assessment of the supplier’s conduct by the Office of Supplier Integrity and Compliance.”
The RCMP has said it is investigating contracting issues related to ArriveCan.