By Canadian Press

Public servants often disregarded rules when awarding McKinsey contracts, AG finds

Jun 4, 2024 | 7:06 AM

OTTAWA — A new report from auditor general Karen Hogan finds government organizations frequently disregarded federal contracting and procurement rules when awarding contracts to consulting firm, McKinsey & Company.

At the request of the House of Commons, the auditor general probed 97 contracts awarded to McKinsey between 2011 and 2023, with a total value of $209 million.

Federal contracts with McKinsey came under scrutiny last year after media reports highlighted the rapid growth of the company’s work with the Liberal government of Prime Minister Justin Trudeau.

The audit finds nine out of 10 departments and agencies, as well as eight out of 10 Crown corporations, failed to follow all aspects of procurement policies and guidelines on at least one contract.

The auditor general flagged that the government may not be getting value for its money, noting that in a sample of 33 contracts, the cost was not estimated in advance for 30 of those contracts.

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The auditor general offered one recommendation on strengthening conflict-of-interest rules and noted that government organizations should adopt previous recommendations made on strengthening procurement practices.

This report by The Canadian Press was first published June 4, 2024.

The Canadian Press