Evidence of meeting #55 for Public Accounts in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was contracts.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

David Smith  As an Individual
Dominic Crupi  As an Individual
Frank Brazeau  As an Individual
David Marshall  Deputy Minister, Public Works and Government Services Canada
Shahid Minto  Chief Risk Officer, Public Works and Government Services Canada
Greg McEvoy  Associate Partner, KPMG
Commissioner Paul Gauvin  Deputy Commissioner, Corporate Management and Comptrollership, Royal Canadian Mounted Police

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

That was in an e-mail, sir, that appears in this review.

4:40 p.m.

As an Individual

Dominic Crupi

I understand, and I questioned the word myself to Mr. Koziol, and I asked, “What does that mean, sir?” He explained to me exactly what Mr. Brazeau explained. Being CAC, I was in no position, not being a procurement expert, to challenge the wording.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Mr. Onischuk recommended originally that Koziol have a job; Koziol then recommends a contract back to Onischuk, but has to go through two additional steps and pay two additional contractors on the way. It just looks like a lot of people having a lot of fun at the expense of the RCMP and its members. That's what this looks like.

4:40 p.m.

As an Individual

Dominic Crupi

I don't know how to answer your question, sir. You're using the word “recommending”, and I was told that is not what “preferred” means.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Mr. McEvoy, did you indicate in your audit that Consulting and Audit Canada was moving contracts through to Abotech in a way that was not normal?

4:40 p.m.

Associate Partner, KPMG

Greg McEvoy

We definitely had problems with the method by which those contracts were awarded.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Mr. Marshall, would you have thought it appropriate for Mr. Brazeau to reveal that one of the contractors who was being paid out of his organization was his cousin?

4:40 p.m.

Deputy Minister, Public Works and Government Services Canada

David Marshall

Yes, I would have expected him to do that and to recuse himself from that particular transaction.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Did you recuse yourself, Mr. Brazeau?

4:40 p.m.

As an Individual

Frank Brazeau

No. I told the appropriate people that I knew Mr. Smith from when I was young. No one asked me to recuse myself.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

But you didn't reveal that you were his cousin?

4:40 p.m.

As an Individual

Frank Brazeau

No. I don't think, if Mr. Smith had died, that the deputy would have given me a day off. I didn't think the relationship—

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

You just didn't think it was important enough to indicate that this was your cousin who was getting these contracts for doing effectively nothing?

4:40 p.m.

As an Individual

Frank Brazeau

That's your statement, sir.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Well, it's obviously my statement, but it was your responsibility to do a job. It looks as though you paid a lot of people for a job that ultimately you can't prove was ever done.

4:40 p.m.

As an Individual

Frank Brazeau

I did not pay anyone, sir. The payment occurred under every one of these contracts through CAC standards at the time.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Mr. Marshall, when were you briefed about the irregularities that were ongoing at Consulting and Audit Canada?

4:40 p.m.

Deputy Minister, Public Works and Government Services Canada

David Marshall

I was briefed approximately, I think, around September—something like that. The internal audit commenced in June, and within a couple of months the chief auditor, Mr. Jackson, came to me and said he was very concerned about the practices he was uncovering.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

In June of 2004?

4:40 p.m.

Deputy Minister, Public Works and Government Services Canada

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

Okay. When did you brief your minister?

4:40 p.m.

Deputy Minister, Public Works and Government Services Canada

David Marshall

We didn't brief the minister at that stage because we were just trying to find out what was happening.

4:40 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

When did you?

4:40 p.m.

Deputy Minister, Public Works and Government Services Canada

David Marshall

I believe we briefed the minister around March or April of 2005, because at that stage it had become clear that there was a serious problem.

4:40 p.m.

Liberal

The Chair Liberal Shawn Murphy

Thank you very much, Mr. Poilievre.

Thank you, Mr. Marshall.

That concludes the first round. Before we go to the second round, I just have a couple of issues I want to pursue.

My first area is to you, Mr. Minto. I find some irony in your appearance here today.

Perhaps some of you aren't aware, but Mr. Minto is the former Assistant Auditor General of Canada. He has many, many years of experience as an auditor and he's extremely competent.

However, when did you move to the Department of Public Works?