Liberal-NDP Axis blocks testimony on contracting fraud charges

Sheila Gunn Reid
  |   July 23, 2024   |   Be the first to comment

Conservative MPs questioned senior bureaucrats Tuesday about millions of dollars in fraudulent contact awards. After six minutes of rapid fire questioning by MP Michael Barrett, Liberal and NDP MPs adjourned the special operations committee hearing for the summer.

"We came here to discuss the outsourcing of contracts," said Liberal MP Majid Johari. "It hasn't gone anywhere," he claimed.

"We're ready to have that conversation," Johari said, "but our [Conservative] colleagues open up by wanting to do a deep dive on a case in front of [the] RCMP." Clara Visser, 62, a federal contractor, was charged with fraud for overbilling $250,000 by submitting doctored timesheets.

The MP subsequently moved to adjourn the hearing. "We're going to take the approach of no meeting for the summer, unless it is an emergency," he said.

MP Barrett briefly examined Catherine Poulin, Assistant Deputy Minister of Department Oversight in the Procurement Ministry, where she admitted to three additional RCMP investigations into federal contracts since 2022.

"Are you able to tell us how many more cases of fraud, aside from Ms. Visser, have been reported to the RCMP?" Barrett asked. "Three cases of fraudulent overbilling were reported to the RCMP," Poulin replied.

"So that includes Ms. Visser?" Barrett asked. "That does not include Ms. Visser," Poulin replied. "That was the first case of fraudulent overbilling we referred to the RCMP."

Visser, who worked with eight federal departments and Crown Corporations, has been subject to intensive scrutiny since 2021. The deputy minister could not detail the name of the contractor's company or the projects she received contracts to work on.

"None of the witnesses here today know the name of her company or the projects she worked on?" Barrett asked. "No, she secured various contracts through various prime contractors with the various federal departments and agencies," Poulin replied. "But the details of those projects is not information I have with me today."

"Is that information you'll undertake to provide to the committee in writing?" he asked. "Yes, we can look into our files and see what can be provided in this regard," she said.

Tuesday's hearing follows a scathing Auditor General report in February that uncovered poor financial controls and spiraling costs for Arrivescam, a glitchy pandemic tool. Parliament launched Arrivescam in April 2020 for travellers to upload mandatory health information at border crossing, including vaccination status.

Hogan earlier told MPs the lack of accurate records had her "deeply concerned" because she could not ascertain where the money was spent, who did the work and the justification for the contracting decisions.

"Overall, this audit shows a glaring disregard for basic management and contracting practices," Hogan testified.

MP Barrett inquired on the dollar amount PSPC suspected as being given to fraudsters or having been the subject of fraud. Poulin did not provide an estimate. Previous testimony at committee ballparked the total at roughly $5 million. 

He pivoted to ask which departments handed out contracts that are now subject to fraud investigations by the RCMP. "No department is entirely safe from this type of fraud," she said. "I think 36 departments."

"Can you provide the list of 36 departments to the committee?" Barrett asked. "We will consult our files to see what we can do," Poulin replied.

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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