The feds gave a Ottawa-based company a $16.4-million cash advance to make COVID-19 pandemic test kits – but the products were never delivered and the company has gone into bankruptcy..Blacklock’s Reporter said Spartan Bioscience filed bankruptcy papers on April 6..“It’s still evolving there,” testified Bill Matthews, deputy minister of public works..“There was an advance payment related to Spartan to get them going, and we’ll see where this goes.”.Conservative MP Kelly McCauley (Edmonton West) on Wednesday questioned whether taxpayers will recover any money from Spartan – company having been touted by cabinet as an innovation leader when it was awarded millions in grants and rush orders for COVID-19 test kits..“I’ve been in the business world before,” said MP McCauley..“I’ve never signed a contract that’s been ‘evolving.’ The contract is for goods received. How is it the contract is a situation that’s evolving?”.“Did we buy it based on the belief it was going to work and we were sold snake oil?”.“There was some risk-taking being done in terms of new products,” replied Matthews..Records show Spartan on March 23, 2020 was awarded an initial grant of $273,928 from the National Research Council. On March 24 the company was “confused” as to terms of a pending order for its test kits, according to a Department of Industry memo. On March 27 it was awarded a $149,048,550 contract for test kits that subsequently failed initial clinical trials..“This is not us buying a standard product,” said Matthews..“The reason I say ‘evolving’ is we’re not entirely sure what Spartan’s plans are in terms of going forward.”.Matthews revealed the company had not delivered a single test kit under its $149 million order..“To date they have not delivered any tests to the federal government,” he said..“That doesn’t mean they won’t in the future. So that’s the reason I’m saying ‘evolving.’”.Spartan on April 6 announced it was laying off seventy percent of its workforce and owed creditors $73 million, including $8.8 million from the federal Business Development Bank..Internal emails showed the company was favoured for contracting after meeting with unnamed staff in the Prime Minister’s Office..“Had a couple of good meetings with the CEO of Spartan,” read an April 13, 2020 staff email..“They’ve been approved and they’re scaling up. Note of caution: It will take more time to scale than they thought. Supply will be thinner in the next while.”.Prime Minister Justin Trudeau and two cabinet ministers praised Spartan by name as a vital federal contractor..Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
The feds gave a Ottawa-based company a $16.4-million cash advance to make COVID-19 pandemic test kits – but the products were never delivered and the company has gone into bankruptcy..Blacklock’s Reporter said Spartan Bioscience filed bankruptcy papers on April 6..“It’s still evolving there,” testified Bill Matthews, deputy minister of public works..“There was an advance payment related to Spartan to get them going, and we’ll see where this goes.”.Conservative MP Kelly McCauley (Edmonton West) on Wednesday questioned whether taxpayers will recover any money from Spartan – company having been touted by cabinet as an innovation leader when it was awarded millions in grants and rush orders for COVID-19 test kits..“I’ve been in the business world before,” said MP McCauley..“I’ve never signed a contract that’s been ‘evolving.’ The contract is for goods received. How is it the contract is a situation that’s evolving?”.“Did we buy it based on the belief it was going to work and we were sold snake oil?”.“There was some risk-taking being done in terms of new products,” replied Matthews..Records show Spartan on March 23, 2020 was awarded an initial grant of $273,928 from the National Research Council. On March 24 the company was “confused” as to terms of a pending order for its test kits, according to a Department of Industry memo. On March 27 it was awarded a $149,048,550 contract for test kits that subsequently failed initial clinical trials..“This is not us buying a standard product,” said Matthews..“The reason I say ‘evolving’ is we’re not entirely sure what Spartan’s plans are in terms of going forward.”.Matthews revealed the company had not delivered a single test kit under its $149 million order..“To date they have not delivered any tests to the federal government,” he said..“That doesn’t mean they won’t in the future. So that’s the reason I’m saying ‘evolving.’”.Spartan on April 6 announced it was laying off seventy percent of its workforce and owed creditors $73 million, including $8.8 million from the federal Business Development Bank..Internal emails showed the company was favoured for contracting after meeting with unnamed staff in the Prime Minister’s Office..“Had a couple of good meetings with the CEO of Spartan,” read an April 13, 2020 staff email..“They’ve been approved and they’re scaling up. Note of caution: It will take more time to scale than they thought. Supply will be thinner in the next while.”.Prime Minister Justin Trudeau and two cabinet ministers praised Spartan by name as a vital federal contractor..Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
