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

3:50 p.m.

As an Individual

David Smith

That is indeed the gross rate which was charged at the time.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

All right. How was Abotech paid: by the consultant or by the government?

3:50 p.m.

As an Individual

David Smith

Once we had secured the contract, we signed a contract with a Mr. Taylor. Everyone had their copy of the contract. I had the consultant sign a contract for the work which was to be done. The consultant had to report to a client of the department. Once a month, the client sent me an invoice and a sheet from the department indicating that the work had indeed been carried out. I then sent the invoice to Consulting and Audit Canada and paid the consultant as soon as the client sent me the official documents indicating that the work had been carried out.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Did some of the money go from the consultants to Abotech?

3:50 p.m.

As an Individual

David Smith

I would receive a federal government cheque and then write out a company cheque in the name of the consultant. The difference between the two was the gross profit for the company.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

But no money exchanged hands between the consultant and Abotech?

3:50 p.m.

As an Individual

David Smith

Of course not.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

I just wanted to clarify that. How did you meet the consultants? Were they referred to you?

3:50 p.m.

As an Individual

David Smith

They were either referred to us or they called me. As I said earlier, these were all former public servants who were experts in certain areas. I suppose that the client wanted this type of expertise. It all depended on what was needed. If a client needed someone for one or two days a week to do a specific job, and if there was a written agreement, the consultant could go work there.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Was Mr. Brazeau one of the people who referred consultants to you?

3:50 p.m.

As an Individual

David Smith

When these people got my name to call me, they got it from Consulting and Audit Canada. Every time I submitted a bid, three, four or five candidates were invited to put forth their names at the same time. That's how it worked.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Did one person in particular refer candidates to you?

3:50 p.m.

As an Individual

David Smith

I imagine that Mr. Brazeau did so. I also met with one of his female colleagues, who worked in the same department, to offer our services to her. This type of service was offered by many businesses in the National Capital Region.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

So there were several people who—

3:50 p.m.

As an Individual

David Smith

I never asked the candidates who sent them my way.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Do you know someone by the name of Michael Onischuk?

3:50 p.m.

As an Individual

David Smith

Yes, Mr. Onischuk had the contract for the RCMP.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

How did you meet him?

3:50 p.m.

As an Individual

David Smith

Michael contacted me. I subsequently met him, and he told me about an opportunity for a contract, as I explained to you earlier. I asked him for his resume, and he gave it to me. I put his name into the data base. Again, three, four or five companies had been invited to submit the names of qualified people for the work.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

How long before contract 560-3107 came out, which was on July 3, 2002 or thereabouts, did you meet Mr. Onischuk?

3:50 p.m.

As an Individual

David Smith

I met the gentleman around the month of June, I think.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

In June?

3:50 p.m.

As an Individual

David Smith

I don't recall exactly when.

3:50 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Do your best.

3:50 p.m.

As an Individual

David Smith

It was certainly around that time, give or take a few months.