Mr. Speaker, on December 5, I put a question to the Minister of Public Works and Government Services asking if her new anti-corruption measures would address any subcontracting problems or illegalities, including those related to a half-billion dollar contract with SNC-Lavalin to manage 300-plus federal buildings. The contract involved numerous subcontractors. It may be noted that she advised that these concerns about this general contractor were brought to her attention by the media, not by her own officials.
My question was whether the new improved measures would be made retroactive to existing contracts and subcontracts and whether they are being applied and enforced by the government or by contractors. I still await an answer to those questions.
This scenario also raises the question of how well the government is delivering its own watchdog responsibilities. It is fine to strengthen the code of conduct, but if not closely monitored and stringently enforced, it has little deterrence, let alone punishment, value.
The minister reiterated that her government's contractual obligations are with only the general contractor—in other words, not with the subcontractors.
The minister also responded that following specific allegations about the bidding process, officials brought in a private forensic auditing company, PricewaterhouseCoopers. What did this cost? Are there no compliance or audit officials within Public Works and Government Services?
The audit called for increased frequency of audits of contracts and improved documentation of expenditures, including providing time sheets. These are pretty basic duties one would have expected to already be in place for a contract to spend half a billion dollars of taxpayers' money. These are pretty basic accounting and audit functions for any contract. A great concern is that these functions were not already being addressed. Are they now being better addressed in light of staff reductions?
Problems with procurement can also be found within Public Works and Government Services itself. We have the case of the two-decade long dispute over federally contracted relocation services for military, RCMP and public servants. It ended in a 15-month trial, with a finding against the government. The case centred on conflict of interest allegations about Public Works and Government Services, then under a Liberal government. The contract was awarded, cancelled, re-tendered, re-awarded to the same company, reviewed by an international trade tribunal, then by a parliamentary committee, and then the Auditor General, before finally being referred to the courts. The report of the Auditor General is scathing. The case centred around yet another public works procurement pilot case to address rising costs of relocation.
This month, the court found the federal government at fault with a $30-million cost award. The case is noteworthy, as the government is apparently yet again receiving complaints about its latest pilot relocation procurement process from potential bidders and federal employees.
I am advised that the latest reform may shortchange both the small moving companies and the families of service men and women. Concerns raised about the latest new, improved procurement process for relocation mirrors many of the exact concerns raised in the successful ongoing court action. This includes failure to fully disclose information necessary to submit a well documented bid. As noted by a former senior official, the government needs to understand that the key role of Public Works and Government Services is to protect the integrity of the bidding process.
Of concern, the judge in the Envoy case noted that the problems in the procurement process were not detected until the audit by the Auditor General. These were not findings of kickbacks, bribes, or political meddling under the code of practice. The root of the problem appeared to be the lack of scrutiny or fairness in the overall procurement process.
I ask the government this: What measures have they taken to address these failings, with the resulting monumental costs to taxpayers, beyond a revised code? What reassurance is there that the same failed processes will not be repeated in the 2014 renewal?