Friday, June 2, 2023

McKinsey contract controversy sparks change in Ottawa | The authority to consult

The 2013 ecumenical document includes reductions in spending on consulting services and other professional services.

These savings, which include travel expenses, will be in the order of $500 million, then $1.7 billion each year thereafter.

“The government is primarily seeking to implement this cost reduction in professional services, especially management consulting services.”

– Reproduced from the Federal Bureau of Investigation

The Trudeau government has been on the defensive since the beginning of the year, according to Radio-Canada’s revelations about the explosion of money paid by the American firm McKinsey for all the plans.

Since coming to government in 2015, the Liberals have spent more than $100 million on consulting services, more than 40 times what the previous Conservative government spent.

Opposition parties and civil servant unions accuse the government of increasing and not having enough confidence in its internal resources.

New irregularities

On Tuesday, less than 10 minutes before the financial disclosure, the federal government released a new internal report on the contracting process and the agreements signed with McKinsey. Additional irregularities are emerging, in addition to those already shared on Friday.

McKinsey’s analysis covered 19 positions from Public Services and Procurement Canada (PSPC), either on its own behalf or on behalf of other government departments.

“Overall, only the management portion of the activities were carried out in a clean, open and transparent manner, according to the applicable procedures. »

– A quote from the Internal Audit of Consulting Services Contracts by McKinsey assisted by Public Services and Procurement Canada

In particular, we learn that the non-competitive process was not justified in the eighteen orders of the seven orders at the Public Office and the procurement of Canada. And in 14 of the 19 orders, there was no evidence that the manager had a valid process.

Also, the risk is not always before the evaluation of the contract.

“No documentary evidence has been issued at the time of the offer standing to confirm that there were no other sources of the same or equivalent service. »

– Authority from Excerpts from PSPC’s internal audit on mandates placed with McKinsey

There was no government intervention, however, points out Scott Bardsley, director of parliamentary affairs in the role of President of the Treasury Board of Canada, who oversaw the audits. A code of values ​​and ethics is maintained. It raises administrative questions.

Reframing in the way of breaking contracts

The controversy over the IT “contract” signed until 2100 with McKinsey also gave space to the ministry. Although it was more simply to make a supplement under the arrangement of the supply, with no contractual guarantee at the end of the line, PSPC believes that the practice is reviewed in the meantime.

“Responding to the supply chain’s methods for benchmarking procurement services and the process of promoting new methods of supply with strategic management functions and challenges.”

– Authorization by the Public Services and the management of Canada’s procurement activities following the internal audit of contracts and agreements with McKinsey

By September 2023, PSPC will also communicate with all of its employees to remind them of the importance of properly documenting and reviewing the trial process and work justification. The training will also be provided to the largest part of the cohort from June 2024.

Nation World News Desk
Nation World News Desk
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