Auditor General Karen Hogan said the Canadian government over recent years spent $200 million on contracts awarded to consulting company McKinsey and Company. Before 2015, Hogan said the Canadian government gave McKinsey and Company $8.6 million. “So the difference would be after that date,” said Hogan in a Tuesday speech at the House of Commons Public Accounts Committee. .Conservative MP Michael Barrett (Leeds-Grenville-Thousand Islands and Rideau Lakes, ON) confirmed the Liberals gave McKinsey and Company about $191 million. “Of the $200 million since Justin Trudeau’s NDP-Liberal government came to power, that’s the accounting of that $200 million to their preferred supplier McKinsey,” said Barrett. “Up until today, we’ve been told that government payments to McKinsey were $100 million.” However, Hogan had accounted for a number twice that amount. He asked her for the total amount of non-competitive contract payments made to it. Hogan responded by saying the Auditor General was the first organization looking into these contracts that can examine Crown corporations. “So prior to my audit, the Comptroller General’s Office asked all the internal audit departments to do work and then the Procurement Ombuds did some work as well,” she said. “Both can only do work on departments and agencies.” She pointed out the increased cost came about after adding in the 10 Crown corporations. With these contracts, she said 71% were issued on a non-competitive basis. Because many contracts were issued on a non-competitive basis, Barrett asked her what that meant. “So are other companies allowed to bid in those situations for the $117 million that went to McKinsey,” he said. When it comes to procurement rules, Hogan said they encourage a competitive contract at the outset. “A competitive contract should help improve the chances that you get better value for money when you bring more players to the table and you get better services,” she said. “Non-competitive contracts, however, are allowed.” While non-competitive contracts are allowed, she said there are limited exceptions. She added many of these contracts had invalid exceptions. Barrett concluded by saying 71% is not an exception. “That seems like the rule,” he said. “Seventy-one percent isn’t an edge case.” Conservative leader Pierre Poilievre said in 2023 his party would put forward a motion calling for a House of Commons committee to probe all federal contracts given to McKinsey and Company.READ MORE: Poilievre calls for probe into $66 million in federal contracts given to McKinsey & CompanyMcKinsey and Company has seen the amount of money it earns from federal contracts explode since Trudeau took office, and there is evidence to suggest it plays a large role in shaping Canada’s immigration policies.Poilievre said it earned 30 times more money in contracts from the Liberals than it did from the prior Conservative government. Despite that, they have not explained what the money was for.
