The Commons Health committee was told on Monday that a vaccine factory in Public Works Minister Jean-Yves Duclos' Quebec City riding received double the amount of federal subsidies initially reported.According to Blacklock’s Reporter, an executive from the factory declined to release the contracts.“I am not able to disclose further details,” testified Toshifumi Tada, CEO of Medicago Incorporated. “I want to be clear. We have two agreements with the Canadian government. We acted in good faith to fulfil both agreements where possible.”Under an Advance Purchase Agreement for COVID-19 vaccines that were never delivered, Medicago received a payment of $150 million.“We didn’t deliver anything,” testified Tada.The company also received approximately $173 million in research subsidies through the department of industry's Strategic Innovation Fund. Tada refused to disclose the specific terms of these subsidies.“I can’t comment on the details, but the agreement was up to $200 million,” replied Tada.“You won’t tell this committee of Parliament how much money the Government of Canada actually, in the end, transferred to you?” asked Conservative MP Rick Perkins (South Shore-St. Margarets, NS). “I have a confidentiality obligation,” replied Tada.The lack of transparency and secrecy surrounding the Medicago deal frustrated Opposition MPs.“When we talk about taxpayer money, we need clarity, and we need transparency,” said Conservative MP Gérard Deltell (Louis-St. Laurent, QC).On February 3, Medicago closed down its operations in Quebec City.The health committee was told that the Japanese parent company Mitsubishi Chemical Group faced challenges when trying to increase the production of commercial vaccines.“I have been participating in this story the entire time and I am confused,” Conservative MP Stephen Ellis (Cumberland-Colchester, NS) said on Monday. “I think our job sitting around this table is to come to a better idea of what happened to Canadian taxpayers’ money. I don’t feel like that is forthcoming. That is a shame.”During a committee testimony on December 4, the department of public works stated that federal agencies became less interested in the Medicago agreement after millions had been paid.“The Public Health Agency asked the department to reduce or eliminate the delivery of some of Medicago doses in order to readjust its stocks and avoid wastage and costs of logistics,” testified Andrea Andrachuk, a director general with the Public Works department. “Medicago was also facing product challenges and delivery date challenges.”“Discussions were undertaken with Medicago to revisit the contract,” said Andrachuk. “The parent company Mitsubishi announced it was going to discontinue its activities in North America.”
