Ottawa has fired the largest contractor that operates the ArriveCan app from all security-related work. Public Service and Procurement Canada said it is revoking GC Strategies’ security status. The Auditor General said more than $1.9 million was given to the organization for the project.
As a result, the company will not be able to participate in any procurement process that requires security, the department said. The move came after the company was barred from participating in the department’s internal procurement process.
The government also banned two other companies that contributed to the ArriveCan app from participating in the procurement process. The two companies are Dalian Enterprises and Koradix Technology Consulting.
The ArriveCan app came under heavy criticism during the pandemic. The Auditor General recently reported that the development was a major management failure.
Karen Hogan said last month that public services have failed to give Canadians the most value for their money. And even Prime Minister Justin Trudeau admits that it’s clear the rules weren’t followed.
The federal government launched the app in April 2020 as a way to track the health and contact information of people entering Canada during the Covid-19 pandemic. Digitization of customs and immigration declarations was another objective.
In a notice issued to the three companies, the procurement department said they have specific mechanisms in place to prevent, detect and take action against potential irregularities. This framework also ensures integrity, fairness, openness and transparency in the federal procurement process.
The department said it has issued a notice to Corradix to stop ongoing contract work. They revoked Dalian’s security status.
GC Strategies, Dalian and Corradix were not immediately available for comment.
The Department of National Defense terminated its contract with the company after learning that Dalian’s CEO was an employee.
Responding to questions about the report, Treasury Board President Anita Anand said that the government’s rules on preventing conflicts of interest and ethical boundaries must be followed at all times.
