During a contentious and lengthy session before the House government operations committee, Kristian Firth, a partner at GC Strategies, vehemently disputed the findings of Auditor General Karen Hogan's report concerning the ArriveCan application.
The Auditor General's report estimated the total cost of the ArriveCan app to be just under $60 million, with GC Strategies purportedly receiving $19 million for their work on the project. However, Firth refuted this claim, asserting that his firm's records show they were actually paid only $11 million. Firth attributed the significant variance in reported figures to systemic issues within the government's contracting process and deficiencies in financial record-keeping.
In her report, Hogan highlighted concerns over poor financial record-keeping practices at the Canada Border Services Agency (CBSA), casting doubt on the accuracy of the reported cost of the ArriveCan app. She went so far as to declare the final cost as "impossible to determine" given the lack of reliable financial data.
Firth suggested that officials at CBSA may have mischaracterized other projects as ArriveCan-related in order to secure additional funding, potentially inflating the overall cost figures. He also revealed that GC Strategies had been awarded a sole-source contract in April 2020 without clear evidence of the firm submitting a formal proposal for the project.
The situation took a more serious turn when the government suspended all contracts with GC Strategies in November, subsequently revoking the company's security status. This move effectively barred GC Strategies from participating in any future contracts that had security requirements attached to them.
During his marathon appearance before the committee, Firth faced pointed questions regarding discrepancies in his previous testimony and alleged interactions with government officials outside of normal working hours. These revelations drew sharp criticism from Members of Parliament (MPs) who expressed concerns over the integrity of the contracting process and potential conflicts of interest.
The ongoing scrutiny surrounding the handling of the ArriveCan project led to a motion being passed unanimously to refer Firth's refusal to provide answers about the criteria used in awarding the lucrative $25 million contract to GC Strategies to the House of Commons for further investigation. Firth's partner, Darren Anthony, is anticipated to appear before the committee to address additional queries related to the controversial project.
As the saga unfolds, the specter of an RCMP investigation looms over the affair, adding further complexity to an already convoluted situation. The fallout from this high-profile dispute is likely to have far-reaching implications for government contracting practices and accountability measures moving forward.