2024-03-24 08:00:00
The announcement is enough to capture the imagination. A fraud uncovered last Wednesday by Ottawa revealed that three consultants in the technology sector invoiced the same hours worked on the same files to 36 different federal departments and agencies.
This $5 million fraud highlights flaws in the government procurement system and blind spots in the contracting process.
In interview on the show Behind the scenes of power, Minister Jean-Yves Duclos emphasizes that it is a small portion of the government’s external contracts that would be involved in this fraud. Nearly ten other cases are already in the sights of its officials.
Ils [les citoyens] are right to be shocked. We are all shocked, we are all angry. We wish these cases didn’t exist, but unfortunately they do, because that’s how human nature works.
Internal investigations into these alleged cases of fraud began several years ago. These have nothing to do with Auditor General Karen Hogan’s devastating report regarding the management of external contracts surrounding the design of the ArriveCan application, even though the Ministry of Public Services and Procurement has been involved.
If Jean-Yves Duclos’ announcement may seem like a public relations or crisis management exercise, professor and public administration specialist Denis Saint-Martin believes that the search for a good publicity stunt and a good public policy are not incompatible.
All the better if it seems like a witch hunt, which is what it should be. It has to be the species […] of sword stroke which ensures that everyone who is used to ignoring the rules knows that there is a sword of Damocles above [de leur tête]. This is not bad in times of crisis.
The results of internal investigations into the three consultants involved in this five million fraud, whose security clearance was suspended, were transferred to the Royal Canadian Mounted Police. The federal government has also taken steps to recover the overpaid amounts.
A drop of water in the ocean of contracts
The take announced last week may seem modest, representing three transactions worth five million dollars out of the 400,000 contracts worth $35 billion awarded by Public Services and Procurement Canada (PSPC) in 2023.
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Jean-Yves Duclos, Minister of Public Services and Procurement
Photo : Radio-Canada
However, Minister Duclos refuses to exaggerate its extent. No, we don’t make too much of it. You have to do whatever it takes […] to find them all. It takes a lot of work, but it’s essential for […] the confidence of Canadians.
However, he admits that we must avoid generalizing the situation to all companies that do business with Ottawa.
These are bad apples in a very big basket of apples. We must avoid believing that the whole basket is rotten.
The fact that 36 ministries were affected by this fraud underlines the strong tendency of ministries to still work in silos, judge Denis Saint-Martin. According to him, this is something that ultimately needs to be worked on.
The professor also underlines the importance of accountability mechanisms to avoid falling into the black hole of accountability.
Artificial intelligence on the heels of fraudsters
It was a denunciation via a telephone line that put PSPC on the track of the fraudsters. Then, advanced data analysis techniques allowed him to note that the three consultants had invoiced the same hours of work to several ministries.
Artificial intelligence is one of the new tools available to investigators. Without it, it is difficult – if not impossible – to compile, cross-reference and analyze data related to hundreds of thousands of federal contracts.
If artificial intelligence can be a tool, it can prove counterproductive, according to Professor Saint-Martin.
Algorithms can help officials looking for clues, but also help contractors try to circumvent the rules.
An eye on suppliers
Among the other tools the ministry relies on to keep tabs on suppliers is the Office of Supplier Integrity and Compliance (BICF). It will see the light of day next May.
The mission of the BICF and its future employees is to ensure that the federal government does not do business with suppliers exhibiting concerning behavior. To do this, the office will have the ability to detect fraud and wrongdoing related to federal procurement.
It may take measures such as suspending or deregistering a supplier, in the absence of prosecution or accusation, and collaborating with other jurisdictions such as Quebec or the United States, according to information provided during a technical briefing. .
If the pandemic caused an electric shock which accelerated the digital efforts of the public administration, according to Denis Saint-Martin, the episode above all put the public service to the test in an emergency situation. Good public administration and the concept of emergency are incompatible, he adds.
However, the professor sees a possible return of the pendulum where almost systematic external subcontracting – a way of doing things that dates from the 90s – would be gradually replaced by more work from internal civil servants.
Nobody likes bureaucracy. Then, when scandals like that happen, it’s sure that it’s easy to blame bad officials, says Denis Saint-Martin.
He adds: These are tough times to go through, but some would say that these are golden files and opportunities to really work hard.
The interview with Minister Duclos will be broadcast to Behind the scenes of power at 11 p.m., Sunday, on HERE RDI and HERE TELE.
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