Relative to the 496 billion Canadian dollars spent by the federal government last year, the amounts in question may seem small. However, recent revelations have shed light on potential fraudulent practices by subcontractors and ongoing issues with the ArriveCAN app, highlighting the challenges of developing software for the government.
Auditor General Karen Hogan’s investigation into the creation of ArriveCAN, a rushed app for Covid-19 data collection, estimated a cost of around 60 million dollars, far exceeding the original budget of 2.3 million dollars. This development comes amidst heightened scrutiny of government procurement processes, particularly for software services.
In response to concerns, federal officials have announced measures to improve oversight and tighten controls on procurement, including requesting the Royal Canadian Mounted Police to investigate potentially fraudulent billings totaling 5 million dollars from three software contractors. While the companies involved were not named, officials indicated that the suspicious activities were unrelated to ArriveCAN.
Minister of Public Services and Procurement Jean-Yves Duclos emphasized the importance of electronic record-keeping in preventing duplicate billing and fraudulent practices, noting that 98 percent of contracts are now in electronic form. The political debate surrounding ArriveCAN has highlighted the role of intermediary companies, like GC Strategies, that act as middlemen in software development projects, raising questions about transparency and value for money.
Professor Daniel Henstra, a political scientist, believes that the reliance on external contractors, like GC Strategies, is a consequence of the government’s shift away from in-house software development. While expedient in meeting tight deadlines, this approach can lead to inefficiencies and potential misuse of public funds. Henstra calls for a stronger internal capacity within government to reduce reliance on external contractors and improve accountability.
Despite the challenges exposed by the ArriveCAN scandal and recent fraud allegations, Henstra believes that the government generally works effectively with contractors to deliver services in the public interest. He acknowledges the need for greater transparency and oversight but emphasizes that most contracts are executed in good faith to serve the public.
