
Five things you need to know about the auditor general and environment audits
OTTAWA – Canada's auditor general and environment commissioner both released reports Tuesday covering everything from the soaring cost of fighter jets to the federal government's plans for climate change adaptation.
Here are five things you need to know.
F-35 costs soar amid project delays, pilot shortages
The estimated cost of Canada's incoming fleet of advanced stealth fighters exploded by nearly 50 per cent in just a few years, auditor general Karen Hogan said.
She concluded that costs associated with the F-35 advanced fighter jet program are running $8.7 billion higher than the original estimates.
And she warns the program is being plagued by delays and critical shortfalls — including a lack of qualified pilots.
Federal organizations failed to follow procurement and security rules
Hogan found federal organizations failed to follow procurement and security rules when awarding contracts to the company behind the controversial ArriveCan app.
An audit of GCStrategies found the company was awarded 106 contracts by 31 federal organizations between 2015 and 2024. The maximum value of those contracts was more than $90 million but only $65 million was paid out.
Hogan's report says many contracts did not follow procurement rules and organizations often provided little evidence to show the work had actually been done.
The report says that, for half of the contracts that required security clearances, federal organizations weren't able to show that those doing the work had the appropriate clearance before the contract was awarded.
Ottawa's plan for climate change adaptation falls short
Ottawa's efforts to prepare the country for the impacts of climate change have stumbled out of the gate, Canada's environment commissioner said.
Jerry DeMarco concluded the National Adaptation Strategy was not effectively designed, did not prioritize Canada's climate change risks and only established one of three components since its release in 2023.
Federal government slow to reduce, modernize its office space
Hogan also found that while Public Services and Procurement Canada has had plans to downsize its office space footprint since 2019, that footprint has reduced only two per cent because full-scale implementation only began in 2024.
Her report says the slow progress is mainly due to a lack of funding.
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Ottawa too slow to process First Nations status applications
Indigenous Services Canada has failed to process applications for registration under the Indian Act within the required six-month timeline — leaving many First Nations people unable to access on-reserve housing, financial aid for post-secondary education and health benefits, Hogan said.
She said more than eight in 10 applications processed by the department exceeded the six-month service standard. Some of those were priority applications for older people or those with health issues.
She also found a backlog of nearly 12,000 applications, including 1,500 that were more than two years old.
This report by The Canadian Press was first published June 10, 2025.
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Vancouver Sun
8 hours ago
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Liberals reject Bloc proposal to split Bill C-5 to speed 'consensual' lifting of internal trade barriers
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Toronto Sun
9 hours ago
- Toronto Sun
GOLDSTEIN: Ignoring contracting rules costs taxpayers billions: auditor general
Auditor General of Canada, Karen Hogan, holds a press conference at the National Press Theatre in Ottawa on Tuesday, June 10, 2025. Photo by Sean Kilpatrick / THE CANADIAN PRESS Federal auditor general Karen Hogan on Tuesday reported widespread incompetence in the awarding of government contracts by the public service, resulting in billions of dollars of taxpayers' money being wasted. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account What's even more alarming is that everyone in the system knows it and no one is doing anything about it. Given that, what is the point of having an auditor general if every time she exposes incompetence and waste, the government pays lip service to implementing her recommendations and then goes back to doing the same things that led to the issue being investigated by the auditor general in the first place? In her latest report, this concern arises from Hogan's deep dive into federal contracts awarded to Ottawa-based GCStrategies Inc. a two-person Ottawa-based IT staffing firm — meaning it doesn't do the work but contracts it out to other companies — to develop the infamous ArriveCan app. That was supposed to cost $80,000. As far as Hogan could determine — because the record keeping was so bad — it ended up costing almost $60 million. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. This time Hogan, at the request of the House of Commons, examined a near-decade of 106 professional services contracts awarded to GCStrategies from 2015 to 2024 by 29 federal departments and agencies, one Crown corporation and one agent of Parliament, valued at up to $92.7 million with $64.5 million actually paid out. Among her findings: — in 58% of the contracts examined that were awarded without tendering, federal departments failed to assess whether doing so would have resulted in lower costs to taxpayers. –in more than 80% of the contracts examined that were awarded without competition or with only one valid bid, government departments failed to verify that the fees paid did not exceed market rates. — in almost 50% of the contracts examined, federal departments couldn't show the work was delivered, even though payments were made. This advertisement has not loaded yet, but your article continues below. — in 33% of the contracts examined, federal departments couldn't show the firms contracted were capable of completing the work. –in 21% of the contracts examined, federal departments lacked documentation showing valid security clearances for contractors working on government networks containing sensitive information. The most alarming conclusion by Hogan was her observation that she has no reason to believe these government failures were confined to this one vendor. She noted the same thing happened last year when she examined 97 contracts awarded by 10 federal departments and agencies and 10 Crown corporations valued at $209 million with $200 million paid out, to McKinsey & Company for consulting services from 2011 to 2023. This advertisement has not loaded yet, but your article continues below. Hogan — who didn't make any recommendations to improve procurement policies saying the problem isn't a lack of policies but failure to follow them — said she believes the same thing is happening throughout the federal government. Writ large, that's why, to cite just one of countless examples, the estimated cost to taxpayers for Canada acquiring 88 F-35 fighter jets — another issue Hogan examined in her report — increased by almost 50% from $19 billion in 2022 to $27.7 billion in 2024, with at least another $5.5 billion needed to make the purchases fully operational. Read More Without drawing conclusions from these specific examples, the fact the same failures keep happening over and over again year after year across the federal government, raises the question of whether beyond incompetence, political corruption is involved, which is beyond the auditor general's purview. Whether, for example, political pressure is being put on public servants to ignore procurement rules in favour of handing contracts to favoured companies and if so, why? RECOMMENDED VIDEO Celebrity NHL Editorial Cartoons Columnists Toronto Maple Leafs