The Government Keeps Giving Contracts To Government Employees
The Office of the Auditor General (OAG) has fired two employees and is investigating a third for failing to disclose secondary employment with the federal government. This breach of conduct comes amid heightened scrutiny over a $7.9 million contract awarded to a company owned by a public servant for work on the ArriveCan app.
According to statements from OAG spokesperson Natasha Leduc, the office discovered in June 2023 that three of its employees held undeclared contracts with the Government of Canada. Two employees were subsequently terminated in September and December after internal investigations, while the third case remains under review.
The firings were precipitated when Public Services and Procurement Canada (PSPC) inquired about one employee during an investigation and raised suspicions about another whose security clearance had been suspended. Both cases were referred to the Ottawa Police Service in February due to potential criminal activity.
Meanwhile, Prime Minister Justin Trudeau acknowledged the need for “significant changes” in public sector procurement practices. Trudeau vowed to address “unacceptable practices” within the public service, citing the ArriveCan controversy and the growing number of examples of undeclared government contracts held by public servants.
“Government needs to make sure that everyone from the political level to the public service level are responsible, transparent stewards of the public money,” he said.
Related: Company Behind ArriveCAN Has Received $250 Million In Contracts Since Trudeau Sat In Office
Auditor General Karen Hogan, who recently published a scathing report on the mishandled ArriveCan procurement, emphasized the importance of public servants disclosing secondary sources of income to prevent conflicts of interest. However, as evidenced by the OAG cases, disclosure does not always occur.
Ian Stedman, a York University professor specializing in government ethics, advocates for a more proactive approach to auditing employees rather than relying solely on self-attestations.
“We probably have to have a layer of oversight and auditing enforcement to continue to reinforce that the rules matter, and that they have consequences,” Stedman told the National Post.
The OAG has implemented additional controls to verify outside employment and contracts, as well as rolling out enhanced ethics training for its employees. Meanwhile, PSPC deputy minister Arianne Reza revealed that five department employees who failed to disclose conflicts of interest were fired or resigned in the past year.
Information for this story was found via the National Post, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
