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

5:20 p.m.

Liberal

Judy Sgro Liberal York West, ON

That happened even though they didn't have any experience in that field whatsoever.

5:20 p.m.

As an Individual

Frank Brazeau

Correct, if we're talking about “preferred contractor”.

5:20 p.m.

Liberal

Judy Sgro Liberal York West, ON

But “preferred contractor” presumably would mean someone who had some expertise that I felt I needed on a particular job. Some of these didn't appear to have that expertise.

5:20 p.m.

As an Individual

Frank Brazeau

No, what “preferred” meant was that the client was allowed.... To have anything competitive, you had to have at least three bidders. The system that was used at CAC is that we had a skills registration system where people would register on the site, and people would come to see us and say, how do I get more bids, how do I get more RFPs? Everybody who came into my office got the same dog-and-pony show. All I said is, you fill in a sheet, put in as many key words as possible, and that's how you'll get more RFPs.

5:20 p.m.

Liberal

The Chair Liberal Shawn Murphy

Thank you, Ms. Sgro.

I wanted to point out to you, Mr. Molson, some e-mails that we have. I'll just read them here:

Email from CASEY to ROY, stating that CASEY and MOLSON came up with a process to pay the insurance plans from the pension plan. MS invoice GWL the full amount then GWL would invoice NCPC for the pensioner's portion and NCPC would pay the invoice from Pension Funds.

Here's another one:

Email from CASEY to CRUPI stating that CASEY and MOLSON approached FOLEY to “discuss the possibility of having the Insurance Admin contract with GWL as prime and MS as sub. Peter will investigate the possibility of this option, but mentioned some concerns....”

Do you agree with that?

5:20 p.m.

As an Individual

Jeff Molson

No, I don't.

5:20 p.m.

Liberal

The Chair Liberal Shawn Murphy

But these are e-mails.

5:20 p.m.

As an Individual

Jeff Molson

Yes. But as I said earlier, my involvement was to figure out what the 60-40 split was in terms of active members versus retired members, because I had some stats on that, and some wordsmithing on the PAC insurance memo or agreement letter. Other than that, I was outside the scope of the insurance administration.

5:25 p.m.

Liberal

The Chair Liberal Shawn Murphy

It didn't sound like that, from the memos.

Mr. Lake, for three minutes.

June 4th, 2007 / 5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Crupi, I have a quick question.

It sounds like it was your decision. Why was only Morneau Sobeco used in the business case?

5:25 p.m.

As an Individual

Dominic Crupi

For what?

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

For the insurance outsourcing, why did you direct them to use only Morneau Sobeco?

5:25 p.m.

As an Individual

Dominic Crupi

I think “direct” is a strong word. It was identified to me by Great-West Life. Great-West Life said they could use Morneau Sobeco because they felt bad about not being able to fulfill their obligation. I told them it was up to them and I didn't care who their subcontractors were.

As far as using Morneau Sobeco only—

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

It sounds like you took direction from Great-West Life in making this kind of key decision.

5:25 p.m.

As an Individual

Dominic Crupi

They gave me advice, and they gave advice to the insurance committee. They advised the insurance committee on how to make investments. They were key players.

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

I actually have lots of questions for three minutes.

Mr. Koziol, very quickly, is there a relationship that we should know about? Is there a relationship at all between PricewaterhouseCoopers and Morneau Sobeco?

5:25 p.m.

As an Individual

Anthony Koziol

No, I don't think so. Actually, I believe Morneau Sobeco had a relationship with them at some point in the past.

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

You don't know what the relationship was.

5:25 p.m.

As an Individual

Anthony Koziol

I don't know what it was, but it was certainly not at the time when the RFP was out.

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Casey, could you quickly answer the question that you didn't answer before? Were you lead on the business case project for insurance outsourcing, yes or no?

5:25 p.m.

As an Individual

Pat Casey

I put the words to paper.

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Were you the lead? Did you lead it, yes or no?

5:25 p.m.

As an Individual

5:25 p.m.

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Yes. Thank you.

What's your educational background? You make a lot of money working for your wife's company. Can you tell me what your degree is that makes you an expert in the field? I notice you didn't have a CV in the KPMG report. They said you didn't provide a CV.

5:25 p.m.

As an Individual

Pat Casey

I have a technical background in electronics.