The Lobbying Act permits corporations to secretly negotiate sole-sourced federal contracts without disclosing the fact, the Commons ethics committee has learned, according to Blacklock's Reporter. Many MPs questioned the practice in cases like Baylis Medical Co., a firm run by former Liberal MP Frank Baylis that subcontracted a $237.3 million order for pandemic ventilators..“Organizations and corporations that follow any public process, and even if it’s not a public process, any contracting, are not required to be registered currently under the Lobbyist Registry,” testified Lobbying Commissioner Nancy Bélanger. She did not specifically mention the Baylis case..“The Lobbying Act needs to be reviewed,” said Bélanger. “Individuals who do have communications about contracts are just not subject to my code,” she added..Under the Act, registered lobbyists acting as agents for contractors must report all meetings with public officer holders. Disclosure does not apply to contractors who directly negotiate themselves. “I do believe there is a gap in the Act with respect to contracting,” said Bélanger..“The Act needs to be reviewed,” said the Commissioner. “I cannot say it enough. The last review was in 2012. We skipped 2017, we skipped 2022. It needs to happen.”.Conservative MP Marc Dalton (Pitt Meadows-Maple Ridge, BC) raised the Baylis case. “Obviously there were a lot of conversations and there was a lot of money,” said Dalton..“It seems like he helped himself and his company,” said Dalton. “This is a real concern.”.Former MP Baylis (Pierrefonds-Dollard, QC) served one term in Parliament, retiring in 2019 to resume management of his medical supply firm in Montréal. Within days of the outbreak of the pandemic in 2020 Baylis Medical “was involved in contract negotiations” to supply ventilators to the Department of Health, according to internal records in the Prime Minister’s Office..Baylis Medical at the time had no federal license to manufacture ventilators. The firm received a cash advance under a $237.3 million contract for 10,000 devices..A total 9,056 of the 10,000 Baylis ventilators were warehoused as surplus by the Public Health Agency and never used in any hospital or clinic. Another 350 were donated to India free of charge..Baylis Medical was subsequently sold to Boston Scientific Corporation of Marlborough, Massachusetts for US$1.75 billion. Baylis testified at 2020 hearings at the Commons ethics committee that prior to the contract his company was so short of cash he had to remortgage the factory. “We cut expenses,” said Baylis. “We remortgaged all our buildings. We extended our line of credit.”.Conservative MP Damien Kurek (Battle River-Crowfoot, AB) on Friday told the committee that stricter rules could not anticipate all scenarios under the Lobbying Act. “No number of rules seems to stop those who would endeavour to circumvent them,” said Kurek.
