I don't know who this Liberal insider is, so it's hard for me to comment on what exactly they're referring to.
When I worked with the opposition leader's office, the project was primarily infrastructural. At the time, the opposition caucus did not have a coherent constituency casework management system. I think that managing casework is a legitimate activity for members of Parliament and the Leader of the Opposition to engage in, and I think that creating technological infrastructure to help them respond to the constituents more promptly is a perfectly legitimate exercise to engage in.
To the point you made, to my recollection, I was never terminated because of some kind of privacy issue. I'm not sure where you're getting that information, but I don't believe it's true.