ArriveCan sweetheart received federal contract the same day its founder became a government employee: report

Dalian Enterprises, a supplier for ArriveCan, received a federal contract on the same day that its founder began working as a public servant for the Department of National Defence (DND).

On Tuesday, Dalian founder David Yeo told MPs that he began working in IT for the Department of National Defence (DND) on September 19 of last year. Additionally, on that same day, his company received a DND contract worth $42,555.29.

Yeo told the public accounts committee he has been "hands off" with the company since becoming a DND employee, reported The Globe and Mail.

The department previously determined that the former contractor did not violate conflict of interest rules. Yeo pledged to provide the committee with the relevant documentation to prove his innocence.

But during his testimony, Yeo admitted to not directly receiving that information directly from the DND.

“I understand that DND has now made a statement that there was no conflict of interest, but I have already made the choice and resigned from the public service after just 168 days,” he testified.

However, the federal government has since denied making that ruling. 

On Wednesday, DND spokesperson Kened Sadiku clarified the department made no such statement. 

“The Department of National Defence (DND) has not made any specific statement related to Mr. Yeo and a conflict of interest,” Sadiku wrote in an email to The National Post.

An investigation into the Dalian founder remains ongoing, confirmed the spokesperson.

Amid continued scrutiny on the Dalian ArriveCan contracts, MPs questioned the degree of separation between Yeo’s work for his company and the DND, as he only signed an NDA with Dalian in mid-November, months after his departure.

“Dalian signed a contract with DND after you became an employee again in the fall of (2023). This is obviously a conflict of interest,” said Liberal MP Jean Yip.

However, a Dalian spokesperson earlier confirmed that Yeo made the appropriate conflict-of-interest filing, resigned as a director and officer of Dalian and put his company shares in a blind trust.

The firm referenced a three-paragraph excerpt from a news article that included a quote from DND spokesperson Frédérica Dupuis to defend their claim Yeo did not commit a conflict of interest. 

However, it made no mention of Yeo, reported The National Post.

“There is no prohibition against contracting for services with current and former employees at any level, and current and former CAF members at any rank,” Dupuis confirmed. These contracts must “be conducted honestly and prudently to withstand public scrutiny,” she writes. 

The firm has received $149.5 million in government contracts since 2008, according to public accounts data. That includes multiple DND contracts, valued at more than $3 million.

The Dalian spokesperson also claimed he did not participate in any work with the company while employed by the DND, further stipulating he did not receive payment from the government as an employee and contractor.

In hindsight, Yeo told MPs he should have been more proactive before starting his new job with the public service.

“I should have done all of that prior to even looking at the offer from the government. So that one’s on me,” said Yeo.