Joly’s department won’t name mystery security contractor hired to oversee Canadian embassies

Foreign Affairs Minister Mélanie Joly’s department refused to name the contractor hired to oversee security at Canadian embassies abroad and did not specify whether the security firm was Canadian. The report followed protests by the Commons Government Operations Committee after managers hired a state-controlled Chinese contractor in 2020, per Blacklock’s Reporter.“Due to national security considerations the name of the supplier ultimately selected cannot be provided,” said a department report on Tuesday in response to the committee. Chinese contractor Nuctech Company Ltd., partly owned by state-run China National Nuclear Corporation, in 2020 was awarded a $6.8 million contract for X-ray scanners at Canadian embassies abroad. The company had been blacklisted as a US supplier since 2014 and was named in a federal Threat Assessment as having “direct connections to the People’s Liberation Army (PLA) and the Chinese Communist Party (CCP).”No security check was done. The foreign affairs department “did not believe a security clearance was necessary,” an internal memo said at the time.The committee in a 2021 report demanded the contract be cancelled. Canada should “prohibit Chinese state-owned enterprises, partial state-owned enterprises including companies receiving undisclosed subsidies and technology companies from obtaining federal contracts related to information technology or security equipment and services,” wrote MPs.The Department of Foreign Affairs said Nuctech was removed from the bidders’ list. “The department has not and will not use Nuctech,” it said.The report was tabled in response to a question from Committee Chair Conservative MP Kelly McCauley. She asked, “Would you provide to the committee who you finally chose for scanners at our embassies?” Foreign affairs officials would not say.“Security and safety of people in Canada’s embassies, consulates and high commissions around the globe is a top priority,” wrote the department.“Any possible issue relative to security or safety is properly reviewed.”The earlier threat assessment report put forth by the committee said Nuctech should never have become a federal contractor. “Nuctech has been involved in several controversies including alleged bribery cases in Africa and Taiwan, and allegations the company sold inferior products at inflated prices to Malaysia and the Philippines,” it said. “The company is also accused of selling their products at a loss as part of a long-term strategy of dominating the market, so-called dumping.”Nuctech was awarded the standing offer over rival companies including Canadian bidders because it “had the lowest bid,” said a Department of Public Works memo.