Quietly awarded $105M defence contract leads to accusations Tories trying to hide details of military spending

OTTAWA — The same day Defence Minister Peter MacKay issued a flurry of seven press releases about minor renovations and the painting of buildings at military installations — worth thousands of dollars — the Conservative government quietly announced on an industry contracting website that it had awarded a German firm a $105-million contract for armoured vehicles.

This came on the same day that MacKay faced questions on the reported costs of Canada’s mission in Libya.

Foreign Affairs Minister John Baird was in the Commons on Friday answering questions about a Postmedia News article that revealed how the government gave the contract to the German company FFG, but that the government’s notice described the order as “transmission components.”

That has prompted accusations from opposition MPs the Conservatives are trying to hide details about military spending.

But Baird said the government was open and transparent about the deal, adding that a notice for it was put up on April 11 on the MERX site. That site is used by industry to bid on government work.

On that same day, MacKay’s office issued seven press releases announcing everything from a $19,360 garage renovation at a military installation in St. John’s, N.L., to a new $33,000 paint job on a DND building in London, Ont.

The other releases from that day detailed the awarding of government contracts at various bases ranging from $220,174 for new sprinkler system, concrete pads and other work at a building in Toronto to a classroom extension on a training building and improvements to sites in Ottawa worth $540,463.

But Liberal party officials have questioned why MacKay would put out news releases for such minor contracts while not informing the public about a major military expenditure.

Defence department officials also privately question why no press release was issued on the multimillion-dollar armoured vehicle contract, since just weeks earlier MacKay’s office sent a news release about the awarding of a contract for $5,943 for barriers at armouries in Montreal.

A Conservative government representative, who asked not to be named, noted the official announcement on the armoured vehicle purchase would be coming shortly and that nothing untoward was behind the decision to keep the awarding of the contract quiet.

But Liberal MP Ralph Goodale questioned why the armoured vehicle deal was labelled as transmission parts, suggesting the Conservatives were trying to hide the expenditure.

Baird, however, said that a background document was put up on DND’s website in 2009 explaining the project. He also noted that an April 11 notice on the MERX website provided an outline of the deal.

“It says very clearly, not transmission equipment,” Baird explained. “It says a Leopard 2 conversion to an AEV. The minister (MacKay) has been completely open and completely transparent on this file.”

The MERX notice does label the project “Leopard 2 Conversion to AEV.” AEV is a military acronym for an armoured engineering vehicle.

But under the section outlining “description” the MERX notice states: “Vehicular Power Transmission Components. Quantity: 1.”

Canada is purchasing at least 13 armoured engineering vehicles, not one. The German firm will build the vehicles, based on a Leopard tank chassis, outfitting them with various systems to support the army’s tanks.

MacKay said the news reports about the armoured vehicle project were wrong and that “we have posted this information on the DND website for over three years. It was in fact included in a press release three years ago.”

DND’s website outlines the project, but there is no announcement the contract had been awarded to FFG. MacKay did not explain how a contract just awarded in April could be included in information posted three years ago on a DND website.

The Conservative government official acknowledged the description of the armoured engineering vehicles as transmission parts was not accurate but noted the term was used as a general description of the purchase.

NDP MP David Christopherson also raised the issue of increasing secrecy over information about defence spending, asking why DND’s strategic investment plan is now considered a classified document.

The upcoming issue of the Canadian Naval Review published by Dalhousie University in Halifax will report that the Defence Department’s Strategic Investment Plan, previously released by the Liberal government, is now considered “a classified document” and cannot be issued to the public. In April, DND informed the publication of the government’s new policy.

The investment document outlines a 15-year plan for equipment projects, their budgets and delivery schedules.

MacKay didn’t answer the question, leaving that to Baird. Baird noted that MacKay had provided Parliament with a significant amount of information and MPs are fully informed before any money is spent. But he did not say why the investment plan is now considered secret.

MacKay and the Conservatives have been under fire for what opposition MPs say is a deliberate attempt to mislead the public on out-of-control military spending. It emerged Thursday that MacKay’s claim that Canada’s mission to Libya last year cost less than $50 million was wrong. New Defence Department figures put the full cost at more than $347.5-million and “incremental costs” — those deemed to be above and beyond normal operating expenses — at $100 million.

The Conservatives also face accusations they misled Parliament on the true cost of the F-35.

Original Article
Source: national post
Author: David Pugliese