Public Accounts

The House of Commons Public Accounts Committee met to study the Auditor General of Canada’s 2024 report on professional services contracts. Appearing were Erin O’Gorman, President of the Canada Border Services Agency (CBSA); Paul Thompson, Deputy Minister of Employment and Social Development Canada (ESDC); Philip Jennings, Deputy Minister of Innovation, Science and Economic Development Canada (ISED); Alexandre Roy, Senior Vice President and Chief Risk Officer of the Public Sector Pension Investment Board (PSP Investments); Andrew Hayes, Deputy Auditor General; and Yolande James, Managing Director at PSP Investments.

Erin O’Gorman stated that CBSA had four contracts with McKinsey between 2016 and 2022, with the fourth cancelled before any work began because the agency determined it could be done internally. She noted that CBSA has implemented all 25 recommendations from eight audits and reviews, including enhanced conflict-of-interest declarations, strengthened governance, compliance reviews, and mandatory procurement training.

Paul Thompson acknowledged that ESDC fully agrees with the Auditor General’s findings and has implemented a detailed action plan, including educational sessions on procurement, a revised procurement road map, and direct engagement with managers on stewardship responsibilities. He highlighted that the department is on track to reduce management consulting expenses by 20% over three years, and he defended the use of McKinsey’s proprietary dataset for benchmarking service delivery, noting that the contracts were separate undertakings.

Philip Jennings confirmed that ISED fully accepts the Auditor General’s findings and has centralized procurement under one directorate, implemented a pre-award quality assurance review for all contracts, and established a tiered governance model. He emphasized that these measures ensure policy compliance and value for money, and he noted that the department now requires a complete documentation checklist before any contract is awarded.

Alexandre Roy explained that PSP Investments, as a non-agent Crown corporation, is not subject to Treasury Board policies but has enhanced its conflict-of-interest measures, including quarterly and annual declarations and a risk-based approach to procurement. He clarified that the 18 non-competitive contracts with McKinsey were investment-related and required agility, and that the board was not involved in awarding them. Yolande James added that PSP reviewed the Auditor General’s recommendations and improved its procurement processes accordingly.

Andrew Hayes stated that the Auditor General’s findings are evidence-based and that all entities certified the factual accuracy of the report. He emphasized that proper documentation is essential to demonstrate value for money, and he noted that while disagreements with departments can occur, they are important for parliamentary study. He also clarified that the Office of the Auditor General stands behind its findings on CRA contact centres.

The committee also heard questions about the appointment of Mark Wiseman as ambassador to the U.S. and his ties to McKinsey, but Andrew Hayes said his name did not appear in the files reviewed. There was no procedural debate, motions, or votes recorded during the meeting.