Latest news with #SAAQclic
CTV News
20 hours ago
- Business
- CTV News
Gallant Commission: Over 1,800 contracts awarded on the sidelines of SAAQclic project
The Gallant Commission is investigating the events that led to the SAAQclic fiasco. (Christinne Muschi/The Canadian Press) Over 1,800 contracts have been signed as part of the Société de l'assurance automobile du Québec (SAAQ)'s digital transformation, excluding the main contract signed with the consortium. This was revealed on Monday morning at the Gallant Commission, which is investigating the failures of the Crown corporation's IT project, known as the Carrefour des services affaires (CASA) and encompassing the SAAQclic platform. A lawyer for the commission, Charlotte Deslauriers-Goulet, presented the contractual timeline behind the SAAQ's technological modernization. She indicated that at least 1,879 contracts, which she describes as 'satellite' contracts, have been signed over the past 10 years. These are 'all contracts that are evolving or have evolved on the periphery' of the $458.4-million framework contract signed in 2017 with the alliance formed by SAP (owned by IBM) and LGS, said Deslauriers-Goulet. The list may include strategic consulting mandates awarded in 2015, before the tender process was launched, as well as technical support during the project's development. 'Some of these satellite contracts were concluded fairly recently. This is because they include contracts aimed at ensuring that CASA eventually comes into being or that help to rectify the problematic situation that arose when the online platform was launched, which the media have dubbed the 'SAAQclic fiasco,'' said the lawyer. The commission does not yet know the total value of these 'satellite' contracts, which are in addition to the initial budget of $458.4 million and the additional expenses of $153.7 million related to the contract with the alliance. 'But we know that we are talking about a considerable amount,' said Deslauriers-Goulet. The commission is continuing to analyze this list of contracts, which was provided by the SAAQ itself. The commission has also been unable to identify 'with certainty' all the co-contractors involved, but some have dealt directly with members of the consortium, said Deslauriers-Goulet. It should be noted that the SAAQ's technological modernization project could cost at least $1.1 billion by 2027, which is $500 million more than expected, according to the Auditor General's (AG) calculations. It is possible that the AG took some of these 'satellite contracts' into account in its estimate, but without knowing their number. This report by The Canadian Press was first published in French on June 2, 2025. By Frédéric Lacroix-Couture, The Canadian Press
CTV News
4 days ago
- Business
- CTV News
The consortium had an ‘appetite' for SAAQ money, witness tells Gallant commission
A security agent strolls through the room where the Gallant hearing on the SAAQclic fiasco investigation is taking place. (Christinne Muschi/The Canadian Press) The consortium of firms behind the development of the SAAQclic platform 'was hungry and wanted to be well fed by funds' from the Quebec auto insurance board (SAAQ). That is the conclusion reached by Jérôme Verreault, a former financial controller at the Crown corporation, regarding the actions of the alliance formed by suppliers LGS, IBM and SAP. Verreault testified on Thursday before the Gallant Commission, which is investigating the SAAQ's failed digital transition. In notes dating from 2018 and 2019 and submitted to the commission, the controller detected certain shortcomings and laxity in the documentation relating to the alliance's invoicing. He made observations that, in his view, show the alliance's 'appetite for money.' In particular, he noted the failure to comply with a clause in the contract providing for a 10 per cent deduction on the fees claimed by external firms. In its invoices, the consortium did not include these deductions, which were nevertheless applied by the SAAQ's IT project office, Verreault pointed out. This clause was used to withhold a certain amount in the event of dissatisfaction with the project. 'This fact allowed me to see that the alliance was hungry and wanted to be very well fed by the funds of the Société de l'assurance automobile,' Verreault told commissioner Gallant. He also cited a clause regarding the availability of external resources to resolve anomalies during the testing and deployment phases. A remuneration of $100 per 'availability slot' was provided for. Verreault emphasized that the alliance was responsible for delivering a solution that worked. The clause, therefore, meant having to pay suppliers a second time in the event of problems, he said. 'My plumber came, he didn't do the job, I call him back and he charges me again by the hour,' Gallant illustrated. Verreault said he never found any document mentioning or approving this rate by the alliance or the Crown corporation. He also criticized the SAAQ for failing to verify compliance with the contract and the accuracy of the invoicing. Risk-sharing clause As revealed by a former internal auditor last week, the hourly rate for certain resources rose from $82 to $350 per hour. Verrreault concluded that this change affected 26 consultants and could result in additional costs of $14 million annually. To date, the reasons for this increase in the hourly rate remain 'unclear' to Verreault. The tasks or expertise of these resources were the same, he said. In Verreault's view, it was clear that the alliance would not work at no cost, contrary to what the SAAQ management might have suggested, brandishing the 'risk sharing' clause initially included in the contract. 'The risk-sharing clause was not Voldemort. It was common knowledge. It was practically written on the walls at the Société d'assurance automobile,' said Verreault. It should be noted that the SAAQ's technological modernization project, known as CASA, could cost at least $1.1 billion by 2027, which is $500 million more than expected, according to the Auditor General (AG). Verreault was in office when the first phase of the CASA project was launched. It targeted the SAAQ's financial and human resources. The controller described the start of this delivery as a 'disaster.' Several problems arose and ended up annoying him. 'Sometimes, I didn't have kind words, which exasperated my colleagues. Sometimes I told them it was a bloody mess,' he said. Verreault left the Crown corporation a few months after the first delivery began. He explained that his departure was due, in particular, to senior management's attitude towards his work. 'My notes were not taken seriously. (...) My role was precisely to help the company prevent (problems). But it was like a monkey: I don't want to hear anything, I don't want to see anything, I don't want to say anything,' lamented Verreault. 'Appearance of favouritism' On Thursday afternoon, an SAAQ executive came to talk about part of the tendering process. Nicolas Vincent explained the various steps leading up to the selection of the consortium in 2017. He acted as compliance coordinator for the 21 advisory committees, whose purpose was to advise the selection committee on specific aspects of the bids received. His testimony highlighted that there was 'an appearance of favouritism' among some members of the advisory committees and 'a perception of favouritism towards one alliance' at a stage when three consortia were still in the running, according to a report from an advisory committee presented to the commission. This seemed to 'lean toward' the SAP publisher, which belonged to two alliances at the time, Vincent said. 'There was a perception that some of those who had prepared the call for tenders were really favouring a SAP solution,' he added. Some of these external consultants had led a project with an SAP solution at Hydro-Québec with Karl Malenfant, the SAAQ's vice-president of information technology at the time, Vincent pointed out. While the selection committee remains independent, its thinking could be influenced by the notes from the advisory committees, Vincent said. Publication ban Earlier on Thursday, computer scientist Vincent Poirier, former auditor of the SAAQ, continued his testimony. He was called upon to comment on an information security audit report he produced in June 2023. However, the content of the report and Poirier's comments are subject to a publication ban for the next few days. It covers 'any technical information or data identifying the cybersecurity and data protection architecture.' According to the SAAQ, 'at this stage, the publication ban is necessary to ensure that information that could jeopardize the security and protection of Quebecers' data is not made public,' the order states. This report by The Canadian Press was first published in French on May 30, 2025.
Montreal Gazette
6 days ago
- Business
- Montreal Gazette
Bugs piled up months before SAAQclic launch, auditor testifies
Quebec Politics A few months before the SAAQclic platform went live, bugs were piling up, according to a former internal auditor at the Société de l'assurance automobile du Québec (SAAQ), who predicted a launch similar to the 'Grands feux Loto-Québec' (Loto-Québec fireworks). Former auditor and IT specialist Vincent Poirier began his testimony Wednesday afternoon before the Gallant Commission, which is investigating the SAAQ's failures in its digital transformation. Poirier reported on the testing period that preceded the SAAQclic rollout in February 2023. During the summer and fall of 2022, more than 100 'critical' anomalies were detected daily. Development teams were resolving approximately 30 to 40 of these issues per day. Nevertheless, bugs were piling up, Poirier told Commissioner Denis Gallant. 'You have to understand that a lot of them were fixed and a lot of them were activated. The pool of unfixed anomalies, as I recall, was at least 1,200,' meaning 'unwanted behaviours that are detrimental to services,' Poirier explained. Despite persistent difficulties, the green light was given to launch 'production,' thus ending the testing period, said the man who is now a software architect at the Ministry of Public Security. When his boss in internal auditing asked him during this same period how the platform's deployment was shaping up, Poirier said he gave him this image: 'We're going to see the Great Loto-Québec Fireworks. It's going to explode everywhere.' 'All the elements led me to believe it wouldn't work. I couldn't say how bad it was,' said Poirier, who worked for a few months in the CASA project office, which includes SAAQclic, before joining the internal audit team from 2021 to 2024. The failed rollout of SAAQclic caused huge queues outside SAAQ branches. The government corporation's technological modernization project could cost at least $1.1 billion by 2027, $500 million more than expected, according to the auditor-general. In the field in the fall of 2022, Poirier recalled encountering IT workers who were 'exhausted' or even 'in tears' at the scale of the problems. Poirier's testimony is scheduled to continue Thursday morning. 'History proves us right' Earlier Wednesday, Poirier's former boss concluded his testimony before the commission. Daniel Pelletier, former director of internal audit at the SAAQ, proposed some possible solutions to improve the governance of the Crown corporation. One of his recommendations aims to reduce the many responsibilities under the Vice-President of Information Technology. At the time he held this position, Karl Malenfant was responsible for the CASA/SAAQclic IT project. He was also responsible for human resources, as well as material and real estate resources, following a reorganization in 2020. 'That's a lot of responsibilities in the hands of one person,' Pelletier said. Many of the tasks grouped under these roles are 'incompatible,' Pelletier emphasized. He said the responsibility of a major projects office, such as the one for the development of the SAAQclic platform, 'should be somewhat removed' from the VP of IT, and 'add a touch of independence.' The retired accountant also submitted a proposal about appointing members to the board of directors. Pelletier how some directors wouldn't listen to and were hostile toward internal auditors during the CASA project. 'The auditors, we were their eyes and ears on the field,' he said. 'As we speak, history is proving us right. To put it in baseball terms, we have a batting average of 1,000, which is no small feat. Why didn't the directors listen more? Why did we always have to fight to make our voices heard?' In previous testimony this week, Pelletier testified that, among other things, his audit team had raised several red flags with the board of directors regarding potential shortcomings and cost overruns before the launch of SAAQclic. Pelletier would like a 'much stricter' director appointment process, not one based solely on references. He also called for greater independence of the internal audit department from the SAAQ CEO. Pelletier suggested that the head of internal auditors report to the legal department rather than to senior management at the administrative level.
CTV News
6 days ago
- Automotive
- CTV News
Opposition parties in National Assembly outraged by SAAQ idea
The Official Opposition in Quebec City is outraged that the Quebec auto insurance board (SAAQ) has considered dipping into the victims' compensation fund to pay off its deficits. This revelation was made on Tuesday by the SAAQ's former director of internal audit, Daniel Pelletier, when he testified before the Gallant commission investigating the failings of SAAQclic. On Wednesday, Liberal MNA Monsef Derraji tabled a motion in the Salon Rouge, pointing out that the fund intended for road accident victims should not be used 'pay off deficits resulting from the poor management of IT projects.' The motion was passed unanimously. Earlier, at a news scrum, Transport Minister Geneviève Guilbault said that 'taking money away from road accident victims to pay for SAAQclic' was out of the question. 'How the money in this fund is used is prescribed by legislation. So we can't do whatever we want with that money,' she explained. 'The government can use the surpluses to reduce the cost of driving licences or to finance road safety activities.' In a news release distributed to journalists on Wednesday morning, the SAAQ confirmed that it was analyzing a scenario in which it would redirect sums to road safety. This 'review of the allocation of road safety prevention activities' would have 'no connection' with SAAQclic, and 'the fund (...) cannot be used to make up the SAAQ's deficit,' the government corporation acknowledged. Moreover, additional investment in road safety would not compromise the fund's 'sound financial health,' and therefore would not affect its 'ability to compensate road accident victims,' it added. This report by The Canadian Press was first published in French on May 28, 2025.
CTV News
7 days ago
- Business
- CTV News
SAAQclic: ex-IT boss ‘bulls-itted' senior management
Judge Denis Gallant of the Commission d'enquête sur la gestion de la modernisation des systèmes informatiques de la Société de l'assurance automobile (SAAQ) awaits the start of the public inquiry into the failure of the SAAQclic platform in Montreal on Thursday, April 24, 2025. (Christinne Muschi/The Canadian Press) Senior management at the Société de l'assurance automobile du Québec (SAAQ) was 'bullshitted' by its IT boss as he defended an extra $222 million for the deployment of the SAAQclic platform, according to a former internal auditor. The former director of the SAAQ's internal audit department, Daniel Pelletier, continued his testimony on Tuesday before the Gallant commission, which is investigating the failures of the provincial Crown corporation. Pelletier revealed that the office of then Transport Minister François Bonnardel was informed in June 2022 of future cost overruns of $222 million. Newly appointed CEO of the SAAQ, Denis Marsolais, called a meeting with a representative of the minister's office to announce the extra cost, which represented 50 per cent of the cost of the initial contract with suppliers. The SAAQ's vice-president of information technology at the time, Karl Malenfant, was also present. According to Pelletier, the meeting did not go well. 'Things got out of hand in the minister's office,' he said. Pelletier said that he had warned Marsolais that presenting such an extra would not go down well in the minister's office and that 'it was going to be hot,' since the latter believes that the contract with the consortium is capped at $458 million, as reported to him by SAAQ senior management, Pelletier asserts. Pelletier questioned the justifications put forward by Malenfant, who is in charge of the SAAQclic project, to defend the additional expenses to the contract. In his view, the suggested additions did not actually exist. Pelletier recounted what he had said to Marsolais following his meeting with the minister's office: 'Denis, you're being bullshitted' by Karl Malenfant. 'I said it to him like that. A sort of cry from the heart," Pelletier told Commissioner Denis Gallant. Marsolais lost his job in April 2023 in the wake of the failed rollout of SAAQclic, which had caused huge lineups outside branches. The SAAQ's technological modernization project could cost a minimum of more than $1.1 billion by 2027, or $500 million more than expected, according to the Auditor General. A modified final bid The final offer from the firms responsible for developing the SAAQclic platform was already raising concerns a few weeks before it was signed. The selection committee for the call for tenders suggested revising or clarifying certain points in the contract before it was signed with the LGS-IBM-SAP alliance in March 2017. Among the concerns was the number of hours for technology integration, which had been reduced by 730,000 compared with the initial bid. Three years later, the consortium calculated that the project would ultimately require 2 million hours rather than 877,000. 'Somewhere in 2020, we were in the process of discussing the possibility of handing over nearly a million more,' recalled Pelletier. In 2017, Pelletier's team had not been informed of the changes made. However, while monitoring the tendering process, the former director remembers that some members of the selection committee were 'surprised' when they discovered the content of the second bid. The consultants' 'very high' hourly rate 'for the additional work reserve' was also a point to be checked against the initial proposal. It rose from $89 to $256. 'For the same work, the competitor proposed an hourly rate of $151,' the selection committee said. The committee also pointed out that the implementation of services for the delivery of permits and registrations on the platform would be done 'without simulation.' 'This implied that there would be no prior simulations or tests. We now understand that it would certainly have been useful,' Pelletier told Commissioner Gallant. Pelletier is due to be cross-examined on Wednesday morning. This report by The Canadian Press was first published in French on May 27, 2025. By Frédéric Lacroix-Couture, The Canadian Press
