Entrepreneurs warn MPs of extortion risks in federal contracting

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Entrepreneurs warn MPs of extortion risks in federal contracting
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GCStrategies’ Kristian Firth ‘routinely boasted that he and his friends, senior government officials with contracting authorities, have ‘dirt’ on each other,’ Botler co-founder Amir Morv told MPs

Ritika Dutt and Amir Morv, co-founders of Botler, take part in a committee meeting on Parliament Hill on Oct. 26.

The government operations committee, known as OGGO, has extended its study into the cost of the ArriveCan app to include a review of Botler’s allegations. The company has raised concerns about layers of subcontracting that hid key details about who was getting paid for what and cozy ties between private staffing firms and public servants. The RCMP is also investigating Botler’s allegations.

Ms. Dutt and Mr. Morv have said that Mr. Firth set up meetings for them with senior officials at the Canada Revenue Agency, Correctional Service Canada, Global Affairs, Shared Services Canada, Transport Canada, Treasury Board and other departments. In his comments to MPs Thursday, Mr. Morv described the use of subcontracting as “ghost contracting,” given that the identities and roles of subcontractors are not pro-actively disclosed by government departments.

“The concern that we’ve brought to the government at every level is about systemic corruption,” she said. “We watched and waited patiently, in silence, for someone to do the right thing and act on our reports. But instead we were heartbroken as they lied. They lied to us. They lied to you at OGGO, they lied to Parliament and they lied to Canadian taxpayers.”

Government officials have said staffing firms are used to fill short-term needs. The CBSA said this week that it is working to decrease its use of private contractors.

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