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Total cost of ArriveCan 'impossible to determine' due to poor record-keeping, AG report finds – CBC News

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The final cost of the controversial ArriveCan app is impossible to determine due to poor financial record-keeping, a new auditor general report has found.

It is just one of the findings that Canada’s Auditor General Karen Hogan highlighted in a damning report about the pandemic-era tool.

Overall, Hogan found that the Canada Border Services Agency (CBSA), the Public Health Agency of Canada (PHAC) and Public Services and Procurement Canada “repeatedly failed to follow good management practices in the contracting, development and implementation of the ArriveCan application.”

“This is probably the first example that I’ve seen such a glaring disregard for some of the most basic and fundamental policies and rules,” Hogan told the House public accounts committee on Monday.

Hogan said she found “omissions everywhere” in the financial record-keeping.

“I have to say I am deeply concerned by what this audit didn’t find,” she told MPs on the committee. 

“We didn’t find records to accurately show how much was spent on what, who did the work, or how and why contracting decisions were made — and that paper trail should have existed.”

WATCH | ‘We paid too much,’ for ArriveCan, says auditor general: 

Total cost of ArriveCan ‘impossible to determine,’ auditor general finds

5 hours ago

Duration 2:35

A new auditor general report has found the final cost of the controversial ArriveCan app is ‘impossible to determine’ due to what it says is poor financial record-keeping.

CBSA said previously the development and operation of the app cost an estimated $54 million.

Hogan estimates the project cost was $59.5 million — but, as the report notes, she was only able to arrive at that figure based on the information available to her.

“We found that financial records were not well-maintained by the Canada Border Services Agency. We were unable to determine a precise cost for the ArriveCan application because of [the agency’s] poor documentation and weak controls,” the report says.

A person holds a smartphone set to the opening screen of the ArriveCan app.
Poor record-keeping makes it impossible to know exactly how much the ArriveCan app cost, says a report by Canada’s auditor general. (Giordano Ciampini/The Canadian Press)

The report says that 18 per cent of invoices submitted by outside contractors that worked on the app didn’t have “sufficient supporting documentation” to accurately determine the cost of the project.

Hogan told the committee that the government “paid too much” for the project and that poor record-keeping compromised accountability.

The report also notes that the CBSA has estimated that $12.2 million of the $59.5 million estimate could have been unrelated to ArriveCan. 

Hogan said she was unable to determine what was included in spending on the app and what wasn’t. She said that the actual cost of the app could be higher or lower than the $59.5 million estimate.

“There could be amounts there that should not be linked to ArriveCan, but there also could be amounts that are linked to ArriveCan that were not flagged in the books,” she said.

Government relied heavily on outside contractors

CBSA depended heavily on third-party contractors to develop the app. The report cites that reliance as a major factor in its ballooning costs.

Hogan’s report suggests that a reduction in the use of outside contractors could have lowered costs and “enhanced value for money.”

As an example, the report estimates that the per diem costs for external ArriveCan contractors was $1,090, while the average daily cost of an equivalent internal position is $675.

The CBSA said in a statement Monday that it’s implementing the recommendations Hogan made in her report. The agency also argued that the app needed to be rolled out quickly at the start of the pandemic.

“The CBSA was working as quickly as possible to replace a paper process that was not meeting public health needs and was also impacting the border with significant wait times that disrupted the essential flow of people and goods,” the statement said.

WATCH | Poilievre blasts government over ArriveCan costs: 

Poilievre criticizes use of outside consultants after ArriveCan report

14 hours ago

Duration 1:48

Conservative Leader Pierre Poilievre says a government led by him would cut down on outside consultants after Auditor General Karen Hogan’s report on the ArriveCan app found a ‘glaring disregard’ for basic management practices.

Hogan told MPs on Monday that seeking outside help for the app at the start of the pandemic was “reasonable.” But she said she would have expected less reliance on outside contractors as the project continued.

“We didn’t see that transition, whether it be that the public service take over some of the operations of the application or that there be a transfer of some knowledge or skill,” she said.

Conservative Leader Pierre Poilievre blasted the government over the app’s costs and accused Prime Minister Justin Trudeau of “wasting [taxpayers’] money.” He promised to cut back on third-party outsourcing if his party forms government after the next election.

“Public servants do the work more accountably and they do it more affordably,” Poilievre told reporters outside the House of Commons on Monday.

“We’re going to save money by reversing Trudeau’s doubling of outsourcing.”

WATCH | ArriveCan contracting practice was ‘unacceptable,’ says LeBlanc

ArriveCan contracting practice was ‘unacceptable,’ says LeBlanc

12 hours ago

Duration 2:44

Public Safety Minister Dominic LeBlanc says he’s glad the auditor general has drawn attention to the ‘lack of rigour in the contracting process’ for ArriveCan.

Responding to questions from reporters on Monday, Public Safety Minister Dominic LeBlanc said ArriveCan’s “contracting process was unacceptable.”

Pressed to state whether the Liberal government takes any responsibility for the process, LeBlanc said it already has started corrective measures.

“The Trudeau government accepts that taxpayers’ money needs to be treated with the utmost respect. In no way are we going to defending this particular contracting process,” he said.

LeBlanc said he’s confident that an ongoing CBSA investigation into the matter will root out any wrongdoing that occurred during the contracting process.

NDP Leader Jagmeet Singh blamed the rise in government outsourcing on both Liberal and Conservative governments.

“This is the result of years of Conservatives and Liberals creating a system that allows wealthy consultants to procure government contracts and make millions in profits at the expense of our professional public service and Canadian taxpayers,” he said in a media statement.

Firm influenced criteria for contract it was later awarded

There is also little documentation to show why or how the biggest contractor — GC Strategies — was chosen for the project.

The company is a two-person consulting firm that advertises itself as being able to help companies navigate the government’s procurement process.

GC Strategies was given a sole-source contract in April 2020 despite a lack of evidence that the firm provided a proposal document for the project, the report says.

Hogan notes that at least one other firm provided an initial proposal for the same contract.

WATCH | AG says firm shouldn’t have been involved in developing contract criteria:

Outside vendor ‘likely limited competition’ in ArriveCan proposal process, auditor general says

12 hours ago

Duration 1:31

Auditor General Karen Hogan says GC Strategies’ involvement in the request for proposal process for Arrive Can likely led to very ‘restrictive and narrow’ selection criteria that allowed only the consulting firm to respond to the proposal request.

The report indicates that the auditor general couldn’t determine which government official made the final decision to select GC Strategies for the April 2020 contract.

And Hogan also found that GC Strategies was later involved in developing requirements that were later used for a competitive contract. That contract — valued at $25 million — was awarded to GC Strategies, the report says.

“In our view, flaws in the competitive processes to award further ArriveCan contracts raised significant concerns that the process did not result in the best value for money,” the report reads.

A man in a grey suit sits in front of a window.
Alexander Jeglic, Canada’s procurement ombudsman, found the criteria used in awarding one contract “heavily favoured” GC Strategies. (Justin Tang/The Canadian Press)

A previous report by Alexander Jeglic, Canada’s procurement ombudsman, found that the criteria used in awarding the $25-million contract were “overly restrictive” and “heavily favoured” GC Strategies.

Jeglic also found that GC Strategies “copied and pasted” government-listed requirements for subcontractors on numerous occasions when submitting proposals to CBSA officials.

Speaking to reporters following her appearance at committee, Hogan echoed Jeglic’s conclusion that the requirements for the $25 million contract heavily favoured GC Strategies. Hogan noted that GC Strategies was ultimately the only firm to bid on the contract.

“[The requirements] were very restrictive and narrow, which likely limited competition,” she said. 

“That kind of involvement by an outside vendor in a competitive process should not happen.”

CBSA officials invited to ‘dinners and other activities’

Hogan’s report also raised concerns about CBSA officials having a close relationship with certain contractors, noting that the officials in question were invited “to dinners and other activities.”

Those officials did not disclose information about these invitations to their supervisors, which she said “created a significant risk or perception of a conflict of interest around procurement decisions.”

The report notes that further investigation of these findings was not pursued because they are subject to ongoing investigations by the CBSA and the RCMP.

The CBSA has been conducting an internal investigation of the ArriveCan contracts. Agency president Erin O’Gorman told the House government operations committee last month that the investigation’s preliminary findings caused her great concern.

O’Gorman said the investigation found “a pattern of persistent collaboration between certain officials and GC Strategies. They show efforts to circumvent or ignore established procurement processes and roles and responsibilities.”

O’Gorman cautioned that the investigation is still ongoing, but a copy of the preliminary findings was provided to MPs on the committee last week.

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Advocates urge Ontario to change funding for breast prostheses, ostomy supplies

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TORONTO – Advocates for breast cancer survivors and people who have had ostomy surgeries, such as colostomies, are calling for changes to the way an Ontario program covers certain medical devices, saying it leaves them paying a lot of money out of pocket.

The Assistive Devices Program partly funds the cost of equipment, such as wheelchairs, insulin pumps and hearing aids, for people with long-term disabilities.

For most of the devices covered under the program, the province pays 75 per cent of the cost, but the funding for breast prostheses and ostomy devices is set at specific dollar amounts, which users and advocates say amounts to far less than 75 per cent of the total price.

People who have had a mastectomy due to breast cancer, for example, can get reconstruction surgeries that are covered by the provincial health plan.

But if they don’t qualify for the surgeries or want them, they can instead get an external breast prosthesis that fits inside special mastectomy bras. The province currently covers $195 for one prosthesis, but they can cost $400 to $500, advocates say.

That amount of $195 was set back in 2006. The Ministry of Health reviewed it in 2011, but made no change. It is now outdated, said Vanessa Freeman, a board member of the group Speaking of Breasts — Advocacy for Solutions.

“It’s not really keeping up with the times, like the cost of living right now. Things have changed substantially,” she said.

Freeman owns Pink Ribbon Boutique, a mastectomy bra boutique, and said she gets some customers to donate used prostheses back to the store.

“We just try to do whatever we can to help, but it’s not really sustainable or truly enough,” she said.

When Freeman’s mother, a three-time breast cancer survivor, discovered she had a gene mutation that had put her at a higher risk for developing breast cancer, Freeman got tested.

In 2016, she found out she had the same mutation. She decided to have a prophylactic double mastectomy.

There are physical implications to losing your breasts, she said, such as the pinched nerves and the neck and shoulder pain that result from a sudden shift in the balance of your body.

The mental implications, she added, are harder to put into words.

“From a young age, I think as women, we’ve kind of been told there’s certain things that make us feminine, those are the things that define us — so breasts, hair, these kinds of things,” Freeman said.

“I wanted to believe that I was bigger than that or that it was some sort of badge to not be affected by it, but … it really hits you in a lot of ways that you don’t necessarily anticipate, even to this day. I have done a lot of work to try to make peace with the way that my body is, and I think I’ve come a long way.”

Therapy has really helped, but that also comes with an additional cost, she said. “That’s not always available to people.”

Kelly Wilson Cull, director of advocacy for the Canadian Cancer Society, said people should not have to pay out of pocket for products and services that they need in their cancer recovery.

“In a country like Canada, people often think that we have universal health care and that cancer wouldn’t come with a bill, but that’s certainly not the case,” she said.

“Getting back to a new normal, and getting back to work and sort of reintegrating into your life after cancer, just having those tools to build self esteem and build normalcy is so critical to the huge emotional journey that comes with a cancer diagnosis.”

The Ostomy Canada Society also said it hears from people in Ontario who have had ostomy surgeries — procedures that create a new opening to bypass problems with the bladder or bowel — who have trouble affording the supplies they need, such as the pouches that collect waste.

The assistive devices program pays $975 per ostomy per year, but the average annual cost for supplies is around $2,500, said Ian MacNeil, who does advocacy and government relations for the society.

“Frequently they have to make decisions on paying the rent, sometimes, it’s, ‘What can I get at the grocery store and not get because I’ve got these supplies to purchase,'” he said.

“So it can be very, very problematic.”

The last update to the amount of funding came in 2015, MacNeil said. People who receive social assistance or live in a long-term care home receive $1,300 per ostomy per year.

“We have been hammering the Ontario government for a change, but we haven’t had any success thus far,” MacNeil said.

A Ministry of Health spokesperson said price and funding reviews for breast prostheses and ostomy supplies in the Assistive Devices Program take into account the average annual client cost.

“No additional reviews are planned for this time,” W.D. Lighthall wrote in a statement. “Grant amounts for ADP devices are based on stakeholder input, client input and jurisdictional reviews.”

This report by The Canadian Press was first published Oct. 18, 2024.



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US to probe Tesla’s ‘Full Self-Driving’ system after pedestrian killed in low visibility conditions

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DETROIT (AP) — The U.S. government’s road safety agency is investigating Tesla’s “Full Self-Driving” system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.

The National Highway Traffic Safety Administration says in documents that it opened the probe on Thursday after the company reported four crashes when Teslas encountered sun glare, fog and airborne dust.

In addition to the pedestrian’s death, another crash involved an injury, the agency said.

Investigators will look into the ability of “Full Self-Driving” to “detect and respond appropriately to reduced roadway visibility conditions, and if so, the contributing circumstances for these crashes.”

The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

A message was left early Friday seeking comment from Tesla, which has repeatedly said the system cannot drive itself and human drivers must be ready to intervene at all times.

Last week Tesla held an event at a Hollywood studio to unveil a fully autonomous robotaxi without a steering wheel or pedals. Musk, who has promised autonomous vehicles before, said the company plans to have them running without human drivers next year, and robotaxis available in 2026.

The agency also said it would look into whether any other similar crashes involving “Full Self-Driving” have happened in low visibility conditions, and it will seek information from the company on whether any updates affected the system’s performance in those conditions.

“In particular, this review will assess the timing, purpose and capabilities of any such updates, as well as Telsa’s assessment of their safety impact,” the documents said.

Tesla has twice recalled “Full Self-Driving” under pressure from the agency, which in July sought information from law enforcement and the company after a Tesla using the system struck and killed a motorcyclist near Seattle.

The recalls were issued because the system was programmed to run stop signs at slow speeds and because the system disobeyed other traffic laws. Both problems were to be fixed with online software updates.

Critics have said that Tesla’s system, which uses only cameras to spot hazards, doesn’t have proper sensors to be fully self driving. Nearly all other companies working on autonomous vehicles use radar and laser sensors in addition to cameras to see better in the dark or poor visibility conditions.

The “Full Self-Driving” recalls arrived after a three-year investigation into Tesla’s less-sophisticated Autopilot system crashing into emergency and other vehicles parked on highways, many with warning lights flashing.

That investigation was closed last April after the agency pressured Tesla into recalling its vehicles to bolster a weak system that made sure drivers are paying attention. A few weeks after the recall, NHTSA began investigating whether the recall was working.

The investigation that was opened Thursday enters new territory for NHTSA, which previously had viewed Tesla’s systems as assisting drivers rather than driving themselves. With the new probe, the agency is focusing on the capabilities of “Full Self-Driving” rather than simply making sure drivers are paying attention.

Michael Brooks, executive director of the nonprofit Center for Auto Safety, said the previous investigation of Autopilot didn’t look at why the Teslas weren’t seeing and stopping for emergency vehicles.

“Before they were kind of putting the onus on the driver rather than the car,” he said. “Here they’re saying these systems are not capable of appropriately detecting safety hazards whether the drivers are paying attention or not.”

The Canadian Press. All rights reserved.



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Moe visiting Yorkton as Saskatchewan election campaign continues

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Saskatchewan Party Leader Scott Moe is set to be on the road today as the provincial election campaign continues.

Moe is set to speak in the city of Yorkton about affordability measures this morning before travelling to the nearby village of Theodore for an event with the local Saskatchewan Party candidate.

NDP Leader Carla Beck doesn’t have any events scheduled, though several party candidates are to hold press conferences.

On Thursday, Moe promised a directive banning “biological boys” from using school changing rooms with “biological girls” if re-elected.

The NDP said the Saskatchewan Party was punching down on vulnerable children.

Election day is Oct. 28.

This report by The Canadian Press was first published Oct. 18, 2024.

The Canadian Press. All rights reserved.



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