Ottawa awarded a single firm 19 non-competitive contracts worth $313 million to shovel pandemic loans out the door
You can save this article by registering for free here. Or sign-in if you have an account.
There’s a reason that outside consultants get paid the big bucks.
In the case of the administration of COVID-era small business loans program, that reason was because the government allowed a consultancy firm to set its own prices, hire its own subsidiary and generally treat the taxpayer as a cash cow to be milked frequently and enthusiastically.
Most of the coverage of the latest Auditor General’s report into the Canada Emergency Business Account program will focus on the $3.5 billion that went to recipients subsequently deemed ineligible, or on the $8.5 billion in loans that have still to be repaid.
Enjoy the latest local, national and international news.
Enjoy the latest local, national and international news.
Create an account or sign in to continue with your reading experience.
Create an account or sign in to continue with your reading experience.
Don't have an account? Create Account
But the real story of bureaucratic bungling is buried halfway through the chapter on the Canada Emergency Business Account’s administration.
The program was designed to provide interest-free loans of up to $60,000 to eligible small businesses, forgiving up to $20,000 if the loan was repaid. The offer of free money was a no-brainer and it proved wildly popular, with nearly 900,000 businesses signing up to borrow $49 billion to cover undeferrable expenses like rent, utilities........