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Quebec’s automobile insurance board, the SAAQ, deliberately misled the provincial government for years about the escalating costs and significant issues plaguing its digital transformation project, SAAQclic, according to a damning report released Monday by Judge Denis Gallant. The nearly 600-page report details a pattern of dishonesty and a lack of oversight that allowed the project to spiral far beyond its initial budget and timeline, leaving Quebecers frustrated with long wait times and system failures when the platform launched in 2023.
The inquiry, prompted by widespread complaints and a ballooning budget, found that the SAAQ consistently provided inaccurate information to elected officials regarding the implementation of the digital transformation program. Judge Gallant stated that transparency and honesty are paramount in public service, qualities demonstrably absent in this case. The findings echo concerns raised last year by Quebec’s auditor general, but go further in assigning responsibility for the systemic failures.
The SAAQclic project, initially intended to modernize the province’s vehicle and driver licensing services, is now estimated to cost up to $1.1 billion – at least $500 million over the original budget, according to the auditor general’s report. The rollout was marred by problems, leaving many Quebecers waiting in long lines in the cold due to difficulties renewing licenses or accessing accounts. The report suggests the issues stemmed from a project that was “too much, too big, too rapid,” lacking sufficient checks and balances.
Misleading Information to Elected Officials
The commission’s report reveals that the SAAQ began providing misleading information as early as 2015, when the CASA digital transformation project was first conceived. Officials underestimated costs when seeking approval from the Treasury Board. In 2021, then-transportation minister François Bonnardel received a budget for the project that was already $300 million higher than the original estimate, but was not informed of this discrepancy. Similarly, Éric Caire, the cybersecurity minister at the time, was not provided with accurate budget information during an SAAQ update. Caire subsequently stepped down from his position shortly after the auditor general’s report was released last year.
The report also suggests that Premier François Legault’s office and former transport minister Geneviève Guilbault were aware of at least some of the cost overruns as early as 2023 – a claim that contradicts previous statements from the government. “Certain government officials obtained, at some moments, reliable information on the rollout of the program,” Gallant said, according to CBC News.
Government Response and Potential Legal Action
Premier Legault announced Monday that the government is considering legal action against SAAQ officials, asserting that his government was unaware of the full extent of the financial issues. “I am not saying the government was perfect. We could have been more mistrusting, we could have asked more questions,” Legault said. “But one thing is clear now … We can clearly observe my government was never aware that the SAAQclic project had a revised cost of $1.1 billion.” He stated the highest estimate previously provided to his ministers was $682 million. Legault also indicated he is awaiting the results of an investigation by Quebec’s anti-corruption unit, UPAC.
Guilbault, in a statement on social media, maintained she has “no recollection” of any meeting where she was informed of the project exceeding its budget, stating she was focused on “crisis management” at the time.
Key Figure and Internal Control Issues
The report identified Karl Malenfant, the former vice-president of digital experience, as having excessive control over the project. “Many key positions … were held by a single person, Karl Malenfant, which is incompatible with a healthy control environment,” the report concluded. Malenfant, who defended the project last week and claimed he was the victim of a smear campaign, held significant power that hindered effective oversight within the SAAQ. The report notes that the SAAQ continued to provide misleading information until Éric Ducharme replaced Denis Marsolais as CEO in early 2023, with Ducharme reportedly making efforts toward greater transparency.
Recommendations for Future Projects
Judge Gallant’s report includes 26 recommendations, with a central proposal being the creation of a centralized body to oversee all government digital transformation projects. The report highlighted a lack of digital expertise within existing government departments, including cybersecurity and digital technologies, as a contributing factor to the SAAQclic debacle. Other recommendations include strengthening governance rules for state-owned enterprises and enhancing the authority of oversight bodies like the Autorité des marchés publics. The report also calls for reform of lobbying laws.
Simon Tremblay, lead prosecutor of the Gallant commission, emphasized that the inquiry’s goal is not to assign blame, but to prevent similar failures in future government initiatives. He drew parallels to the Charbonneau Commission, noting a recurring theme of insufficient internal expertise when awarding public contracts to private firms. “We lack internal expertise,” he said, according to Radio-Canada.
The fallout from the Gallant report is expected to continue as opposition parties scrutinize the government’s handling of the SAAQclic project and debate the future of key figures involved. The investigation by UPAC will also likely shed further light on the circumstances surrounding the project’s failures.
What remains to be seen is how the government will implement the commission’s recommendations and whether legal action will be taken against SAAQ officials. The SAAQclic saga serves as a stark warning about the risks of unchecked digital transformation projects and the importance of transparency and accountability in public service.
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