Head of Pandemic Loan Program Pushes Back Against Scathing AG Report

The president of Export Development Canada (EDC) is standing by its pandemic business loans program, stating that the agency did its best to provide aid quickly, despite an auditor general report revealing $3.5 billion in loans were given to ineligible recipients.

“We made every effort to deliver pandemic relief in a timely and efficient manner, achieving this at a cost of approximately $300 per loan,” EDC President Mairead Lavery informed the public accounts committee on Dec. 4.

“Nevertheless, there is always room for improvement in our processes, especially with a program of this nature launched during unprecedented circumstances.”

In her opening statement, Lavery explained that the organization essentially had to create a banking system from scratch to offer loans to businesses affected by the COVID-19 pandemic. She mentioned that when CEBA was introduced, EDC was already at full capacity supporting customers and administering other relief programs, necessitating them to work swiftly and efficiently.

Lavery also mentioned that EDC collaborated with the auditor general and accepted the audit’s recommendations.

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“We are committed to enhancing our controls and reporting systems, and we have implemented a clear process to recover all loans, including amounts owed by ineligible recipients,” she stated.

Accenture

The auditor general’s report criticized EDC for relying on a single-source contract with a company named Accenture, stating that the company had “excessive control over critical aspects of the contracts.” Accenture was tasked with developing the technology for receiving applications from 233 Canadian financial institutions participating in CEBA, handling millions of documents, and setting up a call center for the program.

The auditor general’s report pointed out that Accenture was provided with hourly contracts instead of fixed-price contracts, eliminating the incentive to complete tasks promptly. Additionally, the company faced no penalties for subpar work quality.

Lavery defended EDC’s choice of a single-source contract to ensure the program’s swift delivery. Although she expressed a desire to initiate a request for proposal process, allowing other contractors to bid for the project, the program’s evolving nature did not permit such a step.

“We selected a partner we believed could deliver swiftly and had significant experience in financial services working with Canadian financial institutions,” Lavery explained.

Accenture did not respond to The Epoch Times’ request for comments before the publication deadline.

During the committee meeting, Conservative MP Brad Vis criticized EDC for disbursing $3.5 billion in loans to ineligible recipients, questioning “who should be held accountable for such a significant error.” Lavery defended the program’s implementation during an “unprecedented time.”

“We supported over 900,000 businesses when they were in dire straits, facing potential bankruptcy, struggling to meet their costs, support their employees, and sustain their families,” she emphasized.