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Ottawa’s sole-sourced deal for APCs for Ukraine raises questions

Parham News by Parham News
January 30, 2023
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Bloc MP Christine Normandin mentioned the acquisition was stunning given the variety of armoured car producers in Canada

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Employees work on the Senator APC at vehicle manufacturer Roshel after Canada's defence minister announced the supply of 200 Senator armoured personnel carriers to Ukraine.
Workers work on the Senator APC at car producer Roshel after Canada’s defence minister introduced the provision of 200 Senator armoured personnel carriers to Ukraine. Picture by Carlos Osorio /Reuters

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The Bloc Québécois’ defence critic is anxious about transparency of a current $90-million sole-sourced deal to produce Ukraine with 200 armoured personnel carriers (APCs).

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The contract was awarded to Mississauga-based Roshel after Ukraine’s defence minister, Oleksii Reznikov, particularly requested the corporate’s Senator car.

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However the Bloc’s Christine Normandin mentioned the acquisition was stunning given the variety of armoured car producers, together with Cambli Group, in her driving of Saint-Jean-Sur-Richelieu, who weren’t approached.

“We’re involved concerning the authorities’s lack of transparency and this opens the door to all kinds of hypothesis as to why the federal government provided such a big contract … with out aggressive bidding.

“Regardless of our solidarity with the Ukrainian individuals and our help for sending arms to assist this nation, we should ask ourselves questions on authorities spending in Canada, and the Liberal authorities should be accountable to Parliament and to the individuals,” she mentioned.

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Whereas the calls for of warfare clearly require a swift response — the federal government has the power to avoid a aggressive course of by invoking an Pressing Operational Requirement and a Nationwide Safety Exception, which permits it to exclude a procurement from the obligations of commerce agreements — the circumstances of this deal have been uncommon.

There is no such thing as a proof of any wrongdoing. Roshel, the Division of Nationwide Defence and the Canadian Business Company, a Crown company that helps overseas governments purchase Canadian items, say all the rules have been adopted.

“Our automobiles have been one of many first ones to be delivered to Ukraine following the start of the Russian aggression towards Ukraine. They proved to be dependable and cost-effective,” mentioned Roshel CEO Roman Shimonov. “We’re the one suppliers who’re in a position to supply intensive after-sale help, permitting us to service automobiles on the bottom and ensure Ukrainian servicemen have operational automobiles.”

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Daniel Minden, a spokesman for defence minister Anita Anand, mentioned the request for the automobiles got here from defence minister Reznikov. “Since Ukraine already owns quite a lot of Senator APCs, a further Canadian donation of the identical car kind means no coaching or in-service help providers are required,” he mentioned.

A senior defence supply mentioned one other firm got here ahead after the federal government had awarded a earlier contract for eight Senators final 12 months however, after a due-diligence examine, DND determined to stay with Roshel for the bigger 200-vehicle contract, in compliance with Ukraine’s request.

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CCC was then engaged to finish a monetary, authorized and integrity overview as a part of the due-diligence course of.

Mouktar Abdillahi, CCC’s senior communications adviser, mentioned all contracts embody anti-bribery and corruption language to make sure compliance with the Corruption of International Public Officers Act.

CCC additionally accomplished an integrity compliance evaluation and an impartial overview of paperwork offered, equivalent to monetary statements and shareholder info. The outcomes of the overview have been then handed on to DND, Abdillahi mentioned.

On nearer examination although, that course of principally consists of a questionnaire about authorized and monetary historical past, questions on items to purchasers and using third-party intermediaries and restricted due diligence by the CCC.

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It will be truthful to say that the scrutiny was not foolproof.

Given the information rising from Ukraine — the place final week the deputy defence minister liable for supplying troops was compelled to resign and reply to media allegations of corruption — there’s a accountability to steadiness Ukraine’s wants with the curiosity of taxpayers. The value of $450,000 per car is excessive, in response to rivals. However that may by no means be confirmed until there’s a aggressive bidding course of. Roshel wouldn’t touch upon the value or on the method used to decide on their car.

That course of would usually be dealt with by Public Providers and Procurement Canada (PSPC), as its title suggests.

However Durward Smith, president of Aurora, Ont.-based Terradyne Armored Automobiles, mentioned his firm, which provides police forces throughout Canada, was not contacted or conscious of any posting by PSPC.

Ben Lemay, vice chairman and normal supervisor at Cambli, mentioned his firm has a really comparable product however was not requested to take part.

There’s an pressing operational want in Ukraine, little doubt. However the transparency and due course of on this case was restricted to the Ukrainian minister making a request and the provider testifying on a questionnaire that they behaved by the foundations.

It could be that Normandin’s considerations immediate Parliament to take a more in-depth look.

jivison@postmedia.com

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