Evidence of meeting #112 for Public Accounts in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was kpmg.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Lydia Lee  Partner and National Leader, Digital Health Transformation Practice, KPMG
Hartaj Nijjar  Partner and National Leader, Cybersecurity, KPMG
Clerk of the Committee  Ms. Hilary Smyth

11:35 a.m.

Liberal

Iqra Khalid Liberal Mississauga—Erin Mills, ON

Thank you, but it was short of reading the Auditor General's report.

11:35 a.m.

Partner and National Leader, Digital Health Transformation Practice, KPMG

Lydia Lee

Oh, I'm so sorry. Yes—

11:35 a.m.

Conservative

The Chair Conservative John Williamson

They read it. They've already testified to that fact.

11:35 a.m.

Partner and National Leader, Digital Health Transformation Practice, KPMG

Lydia Lee

We definitely read it.

11:35 a.m.

Liberal

Iqra Khalid Liberal Mississauga—Erin Mills, ON

Got it.

Thank you very much.

11:35 a.m.

Conservative

The Chair Conservative John Williamson

Thank you, Ms. Khalid.

This is the start of our fourth and last round.

Mr. Brock, you have the floor for five minutes, please.

11:35 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

Thank you, Chair.

Listening to your evidence, with respect, I don't believe you truly recognize how damning your evidence has been to the Justin Trudeau government. You talk, Mr. Nijjar, about exercising due diligence and researching GC Strategies, but GC Strategies, according to the Auditor General, received upwards of $20 million for doing nothing other than connecting government officials with companies such as yours.

They're a pariah. GC Strategies is persona non grata. They've lost all their contracts with the government. They've lost their security clearance. You aligned yourself with GC Strategies, which brings into question...the RCMP may be knocking on your door. If you haven't lawyered up, you probably should be considering doing that.

GC Strategies testified—not under oath, but there is the presumption of telling the truth at committee—to committing criminal acts, criminal acts of fraud and forgery. This is the company you've aligned yourself with, to the tune of almost $400,000.

Is that correct, Mr. Nijjar?

11:40 a.m.

Partner and National Leader, Cybersecurity, KPMG

Hartaj Nijjar

Thank you for your question.

KPMG is not aware of anything related to GC Strategies outside of the work that we performed—

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

Was the amount of the contract $400,000?

11:40 a.m.

Partner and National Leader, Cybersecurity, KPMG

Hartaj Nijjar

The amount that we charged GC Strategies for the cyber-work was $400,000—

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

Yes, $400,000. They received 15% to 30% for doing nothing.

11:40 a.m.

An hon. member

Point of order.

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

The government could have contacted you directly—

11:40 a.m.

Conservative

The Chair Conservative John Williamson

Hold on a second. Mr. Brock, I've stopped the clock. There is a point of order.

I didn't recognize the name, so could you identify yourself again? Is it Mr. Bittle?

11:40 a.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Hi. My name is Chris Bittle. We've been colleagues for nine years—

11:40 a.m.

Conservative

The Chair Conservative John Williamson

Hi, Mr. Bittle. I thought it was you. I wasn't absolutely sure. I heard you in the earpiece, but—

11:40 a.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Fair enough.

11:40 a.m.

Conservative

The Chair Conservative John Williamson

Go ahead on your point of order.

April 4th, 2024 / 11:40 a.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

I didn't raise a point of order when Mr. Brock spoke the first time. He's cutting off the witnesses as they're answering his direct questions. I know that this is an issue of intense interest for all of us, but he's cutting off the witnesses in all of their answers, even as they're answering the questions. It's not that they're being evasive.

I'm having a hard time hearing it. I imagine the translators are experiencing the same thing as well.

Could he just let them answer?

11:40 a.m.

Conservative

The Chair Conservative John Williamson

Thank you for raising that.

Mr. Brock, can you just keep that in mind? I'm finding that I'm hearing the answers loud and clear, but I'm in the room. Perhaps you could just be aware of that for people who are not in the room. Of course, it is their right as members to use Zoom and attend virtually.

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

Mr. Nijjar, you indicated that you didn't know about the unusual if not illegal practices by GC Strategies. You probably don't even know this: Your evidence today gives credence to what GC really stands for—“Government of Canada”—because it's the Government of Canada that's asking you to work with GC Strategies.

Moving on, the procurement ombudsman is now investigating a concept known as “bait and switch”: promising resources that drive up the cost of a contract and delivering less. Are you familiar with that concept?

11:40 a.m.

Partner and National Leader, Digital Health Transformation Practice, KPMG

Lydia Lee

Yes, we are.

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

The ombudsman has discussed it at committee before and is now launching an investigation into this fraud.

Is this a practice ever used by KPMG?

11:40 a.m.

Partner and National Leader, Digital Health Transformation Practice, KPMG

Lydia Lee

The answer is, absolutely not.

11:40 a.m.

Conservative

Larry Brock Conservative Brantford—Brant, ON

Did this ever apply to the nearly quarter of a billion dollars in government contracts since Justin Trudeau formed government?