Latest news with #KarenHogan
Hamilton Spectator
12 minutes ago
- Business
- Hamilton Spectator
Audit General finds F-35 costs soar amid project delays
OTTAWA - The auditor general says the cost of Canada's purchase of advanced F-35 fighter jets is now almost 50 per cent higher than the original estimate provided just two years ago. The audit is one of several reports published by Karen Hogan's office today. National Defence said in 2022 the fleet of 88 F-35s would cost $19 billion, but just two years later, that number has climbed 50 per cent higher to $27.7 billion. The audit says the price tag was pushed sky high by issues associated with the global pandemic, including inflation, and volatile foreign exchange rates. Hogan also warns the work of constructing two new facilities for the new squadrons is running three years behind schedule and Canada still lacks enough qualified pilots to fly the advanced aircraft. The report lands in the midst of an active review of the program ordered by Prime Minister Mark Carney to examine possible alternatives to the U.S.-made F-35. This report by The Canadian Press was first published on June 10, 2025.
Ottawa Citizen
15 minutes ago
- Business
- Ottawa Citizen
Canada's F-35 purchase plagued by cost increases and delays: AG report
OTTAWA — Canada's plan to replace its aging CF-18 fighter jets with American-made F-35s is now expected to cost $27.7 billion — nearly 50 per cent more than the original estimate in 2022 — plus another $5.5 billion to achieve full operation capacity. Article content Those are some of the findings made by Auditor General Karen Hogan, who tabled a report in the House of Commons on Tuesday. Her audit focused on whether the Department of National Defence (DND) would deliver the country's fighter capability on time and on budget. Article content Article content Article content On top of the ballooning costs of the F-35s, Hogan found that the entire project in facing significant risks that could jeopardize the timely introduction of the new fleet. Article content Article content Seven years after former prime minister Justin Trudeau vowed to never buy F-35s, his government finalized an arrangement with former U.S. President Joe Biden's administration in December 2022 to buy 88 of these fighter jets by 2032. Article content The F-35s are expected to replace the outdated CF-18 Hornet fighter jets currently in use which will be gradually withdrawn from service between 2025 and 2032. Article content Amid tensions with U.S. President Donald Trump, former defence minister Bill Blair said a few months ago in an interview with CBC that the government is considering potential alternatives to the F-35 fighter jets. Article content In 2022, the government said the estimated costs for the F-35 contract were $19 billion. Hogan's report found that DND's estimates were based on 'outdated data' and had instead been gathered during the competitive process for acquiring the F-35s in 2019. Article content Article content 'We found that the department was not using the annual 2022 estimates produced by the Joint Strike Fighter Program Office that were more up to date than 2019, which were showing that costs of the aircraft had already increased substantially,' read the report. Article content It also adds that DND was only 50 per cent confident in its 2022 estimate, meaning that the department expected the cost to either be greater or stay the same in equal measure. Article content According to the auditor general's report, DND's most recent estimates show that the cost of the program has increased 46 per cent, or $8.7 billion, between 2022 and 2024, for a total of $27.7 billion. The increase is due to global factors, including rising inflation. Article content However, the report noted that the amount did not include other elements 'needed to achieve full operation capability,' such as infrastructure upgrades or advanced weapons which would add at least another $5.5 billion to the total cost of the F-35 program.
Vancouver Sun
18 minutes ago
- Business
- Vancouver Sun
Canada's F-35 purchase plagued by cost increases and delays: AG report
OTTAWA — Canada's plan to replace its aging CF-18 fighter jets with American-made F-35s is now expected to cost $27.7 billion — nearly 50 per cent more than the original estimate in 2022 — plus another $5.5 billion to achieve full operation capacity. Those are some of the findings made by Auditor General Karen Hogan, who tabled a report in the House of Commons on Tuesday. Her audit focused on whether the Department of National Defence (DND) would deliver the country's fighter capability on time and on budget. On top of the ballooning costs of the F-35s, Hogan found that the entire project in facing significant risks that could jeopardize the timely introduction of the new fleet. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Seven years after former prime minister Justin Trudeau vowed to never buy F-35s, his government finalized an arrangement with former U.S. President Joe Biden's administration in December 2022 to buy 88 of these fighter jets by 2032. The F-35s are expected to replace the outdated CF-18 Hornet fighter jets currently in use which will be gradually withdrawn from service between 2025 and 2032. Amid tensions with U.S. President Donald Trump, former defence minister Bill Blair said a few months ago in an interview with CBC that the government is considering potential alternatives to the F-35 fighter jets. In 2022, the government said the estimated costs for the F-35 contract were $19 billion. Hogan's report found that DND's estimates were based on 'outdated data' and had instead been gathered during the competitive process for acquiring the F-35s in 2019. 'We found that the department was not using the annual 2022 estimates produced by the Joint Strike Fighter Program Office that were more up to date than 2019, which were showing that costs of the aircraft had already increased substantially,' read the report. It also adds that DND was only 50 per cent confident in its 2022 estimate, meaning that the department expected the cost to either be greater or stay the same in equal measure. According to the auditor general's report, DND's most recent estimates show that the cost of the program has increased 46 per cent, or $8.7 billion, between 2022 and 2024, for a total of $27.7 billion. The increase is due to global factors, including rising inflation. However, the report noted that the amount did not include other elements 'needed to achieve full operation capability,' such as infrastructure upgrades or advanced weapons which would add at least another $5.5 billion to the total cost of the F-35 program. As a result, Hogan recommended that DND review the cost estimates for the fighter jet program 'on at least an annual basis' and include in the total cost all elements to achieve full operational capability. The department agreed to these recommendations. The audit also found that the construction of two new fighter squadron facilities — in Cold Lake, Alberta, and in Bagotville, Quebec — is more than three years behind schedule and that developing an interim solution could further balloon costs of the fighter jet program. The delivery of the 88 fighter jets is set to occur between 2026 and 2032. In 2026 and 2027, the first eight F-35s will be sent to an air force base in Arizona where initial pilot training will start. All subsequent aircraft would be sent to Canada between 2028 and 2032. Hogan's report noted the original plan was for the facilities in Cold Lake and Bagotville to be ready when the first aircraft would arrive in Canada in 2028. But at the time of the audit, DND estimated that the completion of the two facilities would have to wait until 2031. Finally, Canada is still facing a potential shortage of qualified pilots which could slow down the transition from CF-18s to F-35s. The auditor general had already flagged an issue with personnel shortages in a report in 2018, and it remains a challenge over six years later. National Post calevesque@ Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here . Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here .
Winnipeg Free Press
18 minutes ago
- Politics
- Winnipeg Free Press
Ottawa too slow to process First Nations status applications: AG report
OTTAWA – Canada's auditor general says Indigenous Services Canada has not been processing applications for registration under the Indian Act within the required six-month timeline. The failure means many First Nations people are unable to access on-reserve housing, financial aid for post-secondary education and health benefits. Karen Hogan reports in an audit released today that more than eight out of 10 applications processed by the department between 2019 and 2024 exceeded that six-month window. Some of those were priority applications for people who are older or have health issues. Hogan says there is a backlog of about 12,000 applications, including nearly 1,500 applications that went unprocessed for more than two years. Hogan also says Indigenous Services couldn't show that most officials making final decisions on applications had the proper training and certifications. This report by The Canadian Press was first published June 10, 2025.
Winnipeg Free Press
18 minutes ago
- Business
- Winnipeg Free Press
Government failed to follow procurement, security rules in GCStrategies
OTTAWA – Canada's auditor general says federal organizations failed to follow procurement and security rules when awarding contracts to the company behind the controversial ArriveCan app. The report on GCStrategies is one of several audits tabled in the House of Commons today. It says 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. Auditor general Karen Hogan looked at a sample set of contracts to see whether they fell in line with federal policy and whether the government got value for taxpayers' money. Her findings say many contracts did not follow procurement rules and organizations often provided little evidence to show the work had actually been done. This report by The Canadian Press was first published June 10, 2025.
