Auditor General Karen Hogan is investigating federal bank Export Development Canada for millions in payments made to manage a COVID-19 pandemic relief program. MPs on the Commons Public Accounts Committee said they were puzzled by the $208 million cost, Blacklock’s Reporter reported. Export Development Canada is the country's export credit agency and a Crown corporation wholly owned by the Government of Canada.In 2020, it was assigned management of the Canada Emergency Business Account program offering $60,000 interest-free loans to small businesses. “We have already begun looking into the program,” Hogan told the committee. “We are intending to make this public by November. There may be delays because we need the information and the financial data. It is already underway.”No details about the program were disclosed at the time by either the Trudeau Liberals or Export Development. The work was given without open bidding to a contractor called Accenture PLC, whose fees were disclosed in the Senate May 30. Costs totalled $208,087,625. CEO of Export Development Canada Mairead Lavery defended the cost at the Public Accounts Committee.“There were 31 contracts that covered a number of activities that Accenture performed over the period for when the program was launched,” testified Lavery, admitting no other contractors were invited to bid. “Can you clarify it was a sole-sourced to Accenture?” asked Conservative MP Arnold Viersen.“Yes it was,” replied Lavery.“You said there were 31 contracts with this company; were all of them sole-sourced?” asked Viersen. “Yes they were,” replied Lavery.“Is that normal?” asked Viersen.“There were different components to the contract which I guess no one anticipated at the start,” replied Lavery. “We had an arrangement with Accenture that was supporting Export Development Canada on other matters. That meant we were able to avoid what would be a six to eight month ‘request for proposal’ procurement cycle to actually get the funding in the hands of companies.”Lavery testified some of the expenses went to running a call centre she claimed received up to 10,000 calls a day. “The call centre was one of the individual activities Accenture performed,” said Lavery. “At the peak of the call centre it was in receipt of 10,000 calls a day.”Bloc Québécois MP Nathalie Sinclair-Desgagné challenged the claim.“I find it hard to believe there were 10,000 calls a day,” said Sinclair-Desgagné. “Why did people have to call a number managed by Accenture when they were dealing directly with financial institutions? How many employees were there at the call centre?” “I would have to check but we reached up to 150 employees in the call centre,” replied CEO Lavery.“I really find it hard to understand how a government can set up a program during the pandemic, delegate it to an agency that then delegates it to a contractor,” said Sinclair-Desgagné. “I don’t know why this company had to spend tens of millions of dollars to set up a call centre and a website. It really is astonishing.”
Auditor General Karen Hogan is investigating federal bank Export Development Canada for millions in payments made to manage a COVID-19 pandemic relief program. MPs on the Commons Public Accounts Committee said they were puzzled by the $208 million cost, Blacklock’s Reporter reported. Export Development Canada is the country's export credit agency and a Crown corporation wholly owned by the Government of Canada.In 2020, it was assigned management of the Canada Emergency Business Account program offering $60,000 interest-free loans to small businesses. “We have already begun looking into the program,” Hogan told the committee. “We are intending to make this public by November. There may be delays because we need the information and the financial data. It is already underway.”No details about the program were disclosed at the time by either the Trudeau Liberals or Export Development. The work was given without open bidding to a contractor called Accenture PLC, whose fees were disclosed in the Senate May 30. Costs totalled $208,087,625. CEO of Export Development Canada Mairead Lavery defended the cost at the Public Accounts Committee.“There were 31 contracts that covered a number of activities that Accenture performed over the period for when the program was launched,” testified Lavery, admitting no other contractors were invited to bid. “Can you clarify it was a sole-sourced to Accenture?” asked Conservative MP Arnold Viersen.“Yes it was,” replied Lavery.“You said there were 31 contracts with this company; were all of them sole-sourced?” asked Viersen. “Yes they were,” replied Lavery.“Is that normal?” asked Viersen.“There were different components to the contract which I guess no one anticipated at the start,” replied Lavery. “We had an arrangement with Accenture that was supporting Export Development Canada on other matters. That meant we were able to avoid what would be a six to eight month ‘request for proposal’ procurement cycle to actually get the funding in the hands of companies.”Lavery testified some of the expenses went to running a call centre she claimed received up to 10,000 calls a day. “The call centre was one of the individual activities Accenture performed,” said Lavery. “At the peak of the call centre it was in receipt of 10,000 calls a day.”Bloc Québécois MP Nathalie Sinclair-Desgagné challenged the claim.“I find it hard to believe there were 10,000 calls a day,” said Sinclair-Desgagné. “Why did people have to call a number managed by Accenture when they were dealing directly with financial institutions? How many employees were there at the call centre?” “I would have to check but we reached up to 150 employees in the call centre,” replied CEO Lavery.“I really find it hard to understand how a government can set up a program during the pandemic, delegate it to an agency that then delegates it to a contractor,” said Sinclair-Desgagné. “I don’t know why this company had to spend tens of millions of dollars to set up a call centre and a website. It really is astonishing.”
