Evidence of meeting #109 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was company.
A video is available from Parliament.
Partner, GC Strategies
Yes, and we would get the corporate history of the company as well.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
Okay.
When you purchased Coredal Systems Consulting and founded GC Strategies, you knew that good opportunities would come up with the Government of Canada, particularly in information technology. In the years leading up to this purchase, quite significant cutbacks had affected the government officials in this field.
How long have you known that information technology opportunities would come up? When did you realize that it would be tremendously profitable to purchase Coredal Systems Consulting to start your own company?
Partner, GC Strategies
I guess I could say I realized it when I got into the business in 2005.
Conservative
The Chair Conservative Kelly McCauley
Thank you, ma'am.
Go ahead, Mr. Bachrach, please, for six minutes.
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Thank you, Mr. Chair.
Mr. Anthony, I'm joining this study partway through, so there's some testimony that I haven't been privy to. However, the picture that seems to be coming to light is one of a small company with two principals that is getting lucrative government contracts and is out there finding private sector contractors and assembling them to work on this IT project for the government.
Your partner indicated that it was a contract for around $11 million, for which your firm received a $2.5-million commission. All of that could seem above board, except that some of those things are not as they seem. For instance, in some cases, your company isn't actually doing the recruiting. In some cases, CBSA was doing the recruiting, finding the resources and then telling them to work through you.
More alarming is the fact that in quite a few cases, we have...essentially, your company is writing the requirements of the contract and then somehow getting the contract and also exaggerating the résumés of the resources who are going to work on the contract and, in at least one case, without the knowledge of those resources.
This is a picture that is very concerning to the public, obviously. Can you see why the picture that has been painted as a result of these hearings is of concern to the Canadian public?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
I assume you're a director of GC Strategies. Is that a fair characterization?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
You're the vice-president. Okay. You have shares in the company. What is your capacity as an owner of the company?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
What is your fiduciary responsibility as an owner of the company? Is it only for your contracts, or is it for the entire corporate entity?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
You're a half-owner of a company that does millions of dollars in government contracts and you don't know what your fiduciary responsibility is to the corporate entity.
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Well, I find that somewhat astounding.
Have you read the Auditor General's report?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
You're saying that the Auditor General of Canada has audited contracts that the company you're a 50% owner of has undertaken, and you haven't read the report.
Have you read the report of the Office of the procurement ombudsman?
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
You're a a director of this company and a 50% shareholder. Your company has been brought into the public limelight for potentially serious misconduct and your contracts with the government have been suspended—all of the contracts—and this is because of reports that have been written by some of the main watchdogs who work on behalf of the Canadian public. They've raised major red flags about the corporate practices of a company in which you're one of the two principals, and you haven't even read the reports.
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
How can you dispute the findings of the reports if you haven't read them?
Partner, GC Strategies
I agree with the numbers that Kristian gave in testimony yesterday.
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
You're telling me that the statements you've made about the Auditor General's report are not based on reading the report but are based on what Kristian told you.
Partner, GC Strategies
They're based on testimony given at these committees.