Evidence of meeting #59 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 work.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Robert Palter  Senior Partner, McKinsey & Company
Ryan van den Berg  Committee Researcher
Clerk of the Committee  Ms. Aimée Belmore

5:25 p.m.

Senior Partner, McKinsey & Company

Robert Palter

McKinsey has exited Russia. We exited a year ago. We have no activities whatsoever in Russia.

5:25 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Yes, but Russia invaded Ukraine in 2014, sir. It took a heck of a long time for you to realize what was happening in Crimea and the Donbass.

I'll come back to my question, which was not answered. Could you clearly tell us whether the rules were followed?

It's not about whether you take the rules seriously. It's about whether you actually follow them. The government says you didn't follow all of the rules. Did you follow all of the rules?

5:25 p.m.

Senior Partner, McKinsey & Company

Robert Palter

Mr. Chair, I'd like to clarify this, because my interpretation of the press release was that it said two things. The first was that there was no political involvement in the selection of McKinsey for contracts. The second was that the rules were not followed. It was not clear who was or was not following the rules.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

That's correct. It said, “However, there are indications that certain administrative requirements and procedures were not consistently followed.”

You're telling us that rules were followed, and the government is saying that rules were not followed. I didn't say that it was wholly on one party or the other. Clearly rules were not followed. Do you accept that rules were not followed in the awarding of these contracts?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

If you follow the word of the independent review that TBS did, it would say that some of the rules were not followed.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Okay. I hope you believe that, but it's contrary to what you said in your initial testimony: that rules were followed.

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

No, what I said was that McKinsey follows the rules.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

You received contracts through a process that did not follow the rules. You either didn't follow the rules or you benefited from the government's not following the rules.

You talked about digital transformation. Did you advise the government at any point on the Phoenix pay system?

5:30 p.m.

Senior Partner, McKinsey & Company

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Has McKinsey done opioid work in Canada?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

This is an important question. The answer is that McKinsey has done no opioid sales and marketing work in Canada.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Have you advised Purdue Pharma in Canada or any other opioid manufacturers?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

McKinsey has done no opioid sales and marketing in Canada.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

You don't do it, obviously, but you're advising companies that do it. Is that correct?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

We do not advise on opioid sales and marketing in Canada.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Have you done work for Purdue Canada?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

Mr. Chair, I'm here, and I'm happy to take questions about our relationship with the federal government and the work we've done and the results we've produced.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Yes, that's great.

I'm asking you a question. Have you done work for Purdue Pharma Canada?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

I do not believe we have done work for Purdue Canada.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Okay.

Have you done work for opioid manufacturers here in Canada?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

I don't know.

I have been the managing partner of McKinsey since September 2022.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Right. Okay.

Could you send a follow-up to the committee, please, about which opioid manufacturers you have done work for in Canada?

McKinsey analysts were advising the Prime Minister's growth council. Is that correct?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

McKinsey was providing data and analytical support to the growth council.

5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Were any of the analysts who worked on the growth council also working on other paid projects for the Government of Canada?

5:30 p.m.

Senior Partner, McKinsey & Company

Robert Palter

Again, McKinsey was providing data and analytical support to the growth council. I do not know the specifics of what happened to those folks after that.