KPMG Canada executives found themselves under intense scrutiny Thursday as they faced pressure to seek legal counsel regarding their involvement with an ArriveCan contractor currently embroiled in an investigation, according to Blacklock's ReporterTestifying before the Commons public accounts committee, KPMG managers revealed they had been instructed to collaborate with GC Strategies Inc."If you haven't lawyered up, probably you should consider doing that," warned Conservative MP Larry Brock (Brantford-Brant, ON), raising concerns about potential legal repercussions.The committee learned that KPMG billed approximately $5 million for its contributions to the ArriveCan program, including a $400,000 cybersecurity subcontract through GC Strategies, a small firm operating from a private residence in Woodlawn, ON, now suspended as a federal contractor.MP Brock expressed outrage over GC Strategies' substantial earnings, stating, "They are a pariah... persona non grata." He emphasized the significant risk associated with aligning with such a tainted entity.Hartaj Nijjar, a partner at KPMG, testified the firm had been directed to engage with GC Strategies by government officials overseeing the ArriveCan program. "It was understood," Nijjar remarked, explaining the rationale behind their collaboration.However, Conservative MP Michael Barrett (Leeds-Grenville, ON) questioned the legitimacy of this arrangement, labelling it as abnormal. Nijjar admitted he was not aware of similar contracts directly initiated by the government.MP Barrett expressed incredulity at KPMG's association with a small firm operating out of a suburban basement, given KPMG's expansive national presence and workforce.MP John Nater (Perth-Wellington, ON) echoed these concerns, calling the testimony troubling. He highlighted the unusual circumstances wherein KPMG was directed to subcontract through GC Strategies instead of dealing directly with the Canada Border Services Agency.Bloc Québécois MP Nathalie Sinclair-Desgagné (Terrebonne, PQ) expressed suspicion about the arrangement and criticizing KPMG for not recognizing the reputational risk associated with working with such a small company."In hindsight, KPMG should have seen this," she said, emphasizing the importance of risk assessment in maintaining a firm's reputation.
