Auditor General slams Liberals over $93M ArriveCan bill
The federal Liberal government has allowed critical procurement controls to fall apart.
A scathing new report from Canada’s Auditor General has exposed staggering failures in the federal government’s procurement system—highlighting how a two-person IT consultancy secured nearly $93 million in federal contracts with minimal oversight, no competition in most cases, and glaring security risks.
The audit, released Tuesday, paints a damning picture of how the Liberal government allowed one small firm—GCStrategies—to rake in tens of millions of taxpayer dollars while bypassing basic procurement safeguards.
One Tiny Company, 106 Contracts, and $93 Million on the Books
Between 2015 and 2024, 31 departments and agencies awarded GCStrategies 106 contracts, with a total potential value of $92.7 million—of which $64.5 million has already been paid out.
The firm, operated by Kristian Firth and Darren Anthony, does not build or develop software. Instead, it operates as a staffing intermediary—sourcing subcontractors and passing along marked-up invoices to the federal government.
Auditor General Karen Hogan’s report found:
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In 82% of non-competitive or single-bid contracts, departments failed to verify if the prices charged were reasonable.
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In 21% of cases, there was no documented evidence of required security clearances, despite access to sensitive systems.
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At least 87 “low-value” contracts—under $25,000—were structured specifically to avoid triggering stricter procurement rules.
“Federal organizations did not follow good management practices or exercise appropriate oversight in contracting for professional services,” Hogan stated.
ArriveCan Was Just the Tip of the Iceberg
The audit further confirmed that GCStrategies played a central role in the development of the COVID-era travel surveillance ArriveCan app, which ballooned from a modest digital tool into a $60 million fiscal mess.
While the actual software development cost was likely just a few hundred thousand dollars, contracts funneled through GCStrategies and other intermediaries exploded the final price tag—fueling public backlash, a House committee investigation, and an ongoing RCMP probe.
Hogan’s audit now shows that the problems weren’t limited to ArriveCan—they were systemic.
COVID Accelerated the Abuse
Contracting with GCStrategies skyrocketed during the pandemic years:
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2020–21: $13.7 million
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2021–22: $18.5 million
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2022–23: $13.2 million
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2023–24: $1.5 million (after public scrutiny and parliamentary review)
Major Departments—and the CBC—Caught in the Web
Big spenders included:
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Canada Border Services Agency: $49.9 million
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Treasury Board Secretariat: $10 million
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Innovation, Science and Economic Development: $9.9 million
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National Defence: $3.6 million
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CBC: $12,000
While CBC breathlessly reported on the GCStrategies scandal for months, it never disclosed that it had its own contract with the firm. That little nugget only surfaced in the Auditor General’s report—not in any CBC broadcast. Just another day in the state-funded media bubble, where the watchdogs forget to bark when they’re part of the story.
Still No E-Procurement System, No Fraud Detection
Despite previous government promises—and over $30 billion in annual federal procurement—the Auditor General found:
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No modern e-procurement platform in place
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No fraud risk assessments conducted across departments
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No system-wide detection tools to flag questionable contracts
“Rules exist to ensure fairness, transparency, and value for money, but they are not consistently followed,” Hogan warned. “Simply adding more policies will not fix the problems.”
This isn’t just red tape mismanagement. It’s a full-blown oversight crisis—where massive public spending is vulnerable to abuse, waste, and potentially fraud, with no safeguards in place.
The federal Liberal government has allowed critical procurement controls to fall apart. If a two-man operation with no development capacity can walk away with $93 million and almost no questions asked, what else is happening behind closed doors?
And if even the CBC—paid a billion and a half dollars a year by taxpayers—can’t be bothered to disclose its own dealings with GCStrategies while covering the scandal, who exactly is left to hold this government accountable?
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.
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COMMENTS
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Bernhard Jatzeck commented 2025-06-12 00:01:50 -0400What good is getting mad at the Liberal government for its financial irresponsibilities when it knows it’s the “natural governing” party? -
Bruce Atchison commented 2025-06-10 19:52:05 -0400Ezra is still right. They are the Libranos. What crooked shysters! Worse yet, nobody minds. They seem divorced from any consequences. Why do people shrug this off? It should make any taxpayer raging mad.
