Evidence of meeting #62 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 contract.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Brian Glicksman  Treasury Officer of Accounts, United Kingdom (Retired), As an Individual
Kim Casey  As an Individual
Pat Casey  As an Individual
Dominic Crupi  As an Individual
Frank Brazeau  As an Individual
François Guimont  Deputy Minister, Department of Public Works and Government Services
Shahid Minto  Chief Risk Officer, Department of Public Works and Government Services
Anthony Koziol  As an Individual
Superintendent Fraser Macaulay  Chief Superintendent, Royal Canadian Mounted Police
Jeff Molson  As an Individual

4:55 p.m.

Chief Risk Officer, Department of Public Works and Government Services

Shahid Minto

Thank you, Mr. Chairman.

Let me say that your characterization is quite right. There is a problem. I'm not sure I've seen enough evidence right now to say there was corruption. When we sent our files over to the police, they came back to us and said they did not have enough evidence for a police case. We sent our forensic auditors in to look at the contractors' records, and everybody agreed there was maladministration. Everybody agreed that through maladministration the fundamental principles of equal access and best value had not been met. So we took this as an administrative exercise and we did some dramatic things as an administrative exercise.

What we did put in our DPRs was that we were splitting up the departments and changing the mandate of the department. We didn't get into all the causes of why we did it, but we explained some of the things we were doing over there.

You raised a very good question, a question for all our colleagues in government: how do you handle shared accountability between departments in DPRs? When you put the two stories together and connect the dots between what happened in the RCMP and what happened in CAC, it is a much more serious story than if you're only looking at the contracting aspect within. And I have to say to you that we were not aware of the other issues the Auditor General brought out in her report until the Auditor General's report was tabled; we were only aware of the contracting issues in that.

I think it would be most helpful to all of us, sir, if the committee had some deliberations and recommendations on what to do in areas of joint responsibility. It's not that people don't want to disclose or are hiding things; it's that over $1 trillion flows through this department. What level of detail would you want us to put in that, and how?

I think we are very open to improving the DPRs. There was no decision made at any time at all, I can assure you, not to put it in. We explained in our DPR that we were changing the mandates of the organizations and that we were changing the organizational structure; there were some privacy issues around the sanctions we had taken, so obviously they could not go in there. But if there are ways to improve it, we'd be very happy to do so.

4:55 p.m.

Liberal

The Chair Liberal Shawn Murphy

Thank you very much.

Colleagues, we have about 30 minutes left. We're starting the second round, so it will be three minutes each.

Mr. Wrzesnewskyj, three minutes, and I'm going to have to brutal.

4:55 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Thank you.

Mr. Molson, you went with Mr. Casey to meet with Great-West Life to convince them to take on the contract with the RCMP and then subcontract to Morneau Sobeco, which directed the award of $6.3 million of contracts without competition.

Do you remember going, and do you remember that meeting?

4:55 p.m.

As an Individual

Jeff Molson

Before I respond, when I was invited here, I was told that I would have an opportunity to make an opening statement. I'm wondering if that's going to happen.

4:55 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Chair, with the limited time, I would hope that's--

4:55 p.m.

Liberal

The Chair Liberal Shawn Murphy

No, Mr. Molson. We have limited time. Your opening statement will be translated and circulated.

4:55 p.m.

As an Individual

4:55 p.m.

Liberal

The Chair Liberal Shawn Murphy

Go ahead.

4:55 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Thank you.

Could you answer the question?

4:55 p.m.

As an Individual

Jeff Molson

In answer to your question, I did not attend a meeting with Mr. Casey and Great-West Life. The only interaction I had with Great-West Life was at our monthly status meetings on the project. We had status meetings on the progress of the pension administration outsourcing. Great-West Life came in at the end of that meeting for a five-minute update on whatever they were doing.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Why would the Ottawa police investigation state that you went with Mr. Casey to Great-West Life?

5 p.m.

As an Individual

Jeff Molson

I did not go with Mr. Casey to Great-West Life.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Mr. Casey, did you meet with Mr. Foley of Great-West Life?

5 p.m.

As an Individual

Pat Casey

I did on numerous occasions during the--

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Did you meet him on this particular issue?

5 p.m.

As an Individual

Pat Casey

I don't recall this meeting on that particular topic. No.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

So you don't remember discussing Great-West Life taking on the contract and then subcontracting to Morneau Sobeco so as to avoid an open competition for this?

5 p.m.

As an Individual

Pat Casey

As I said in my opening statement, I did recommend the ACAN route. I'm not sure who made the decision to go the subcontract route through Great-West Life, but it certainly wasn't me.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

We had a statement in the Ottawa police investigation and in the Auditor General's report that Great-West Life had tremendous reservations and said that this should go for comment to the RCMP legal department. It was stated that Mr. Casey didn't want to get the RCMP legal department involved.

Why would you have stated that?

5 p.m.

As an Individual

Pat Casey

I was under.... I reviewed that with my supervisors, and they advised me that RCMP legal would not look at a third party contract between third parties external to the RCMP.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

Could you please refer to the names of your supervisors?

5 p.m.

As an Individual

Pat Casey

Mr. Roy and Mr. Crupi.

5 p.m.

Liberal

Borys Wrzesnewskyj Liberal Etobicoke Centre, ON

So Mr. Crupi, according to what he has just said, you were providing advice to Mr. Casey in a way to circumvent an open tendering process on the $6.3 million worth of contract.

5 p.m.

As an Individual

Dominic Crupi

Well, I think there are two parts to it.

First of all, it was Great-West Life who came to us and said they felt bad that they couldn't do their obligations and that they would have no problem going to a subcontractor. From my recollection, it was never us who brought that up; it was Great-West Life, because they couldn't fulfil their original mandate.

Secondly, I don't have a recollection of this meeting that Mr. Casey is talking about. I do recollect that basically he said, why would justice look at a contract between Morneau Sobeco and Great-West Life?

5 p.m.

Liberal

The Chair Liberal Shawn Murphy

Thank you very much, Mr. Wrzesnewskyj.

Mr. Crupi, you were Mr. Roy's supervisor, right?