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Almost $100 million to major consulting firms: “We have to get out of this vicious circle”

December 14, 2023 by istri

Within just under five years, the Caisse and a handful of state-owned companies awarded contracts worth almost $100 million to large consulting firms, also known as the “Big Four” (Deloitte, PwC, EY, KPMG), and to McKinsey. written down The newspaperwhich state union members find “insulting.”

“We must get out of this vicious circle that costs taxpayers more and more and in which the lack of personnel leads to a weakening of the internal competence of the State, which then becomes more and more dependent on external resources,” denounced the President General to the Journal of of the Quebec Public and Parapublic Service Union (SFPQ), Christian Daigle.

“The reflex of government agencies and elected officials to turn to companies and subcontract is an insult to the competent and experienced public service workforce,” he added.

On the contrary, according to François Dauphin, CEO of the Institute on Governance (IGOPP), these large companies have world-class expertise that can prove valuable in government organizations.

“You have access to a global network of expertise. Taking advantage of these can bring significant benefits,” explained the IGOPP boss.

“In certain countries we question their practices,” he emphasized.

More than $52 million at the Caisse

At the Caisse de dépôt etplacement du Québec (CDPQ), more than $52 million in contracts went to these large firms, according to a response to an access request (DA).

“The CDPQ refuses to communicate the specific purpose of the work of each prosecutor’s office, as they contain confidential information that affects the economy,” explained Claude Mikhail, head of the fund’s information access department.

At Prime Minister François Legault’s Ministry of Executive Council (MCE), more than $24 million went to these consulting services giants, including nearly $14 million to KPMG for economic studies on high-speed internet.

GEN - CAISSE DÉPÔT LOGO

*Amounts from the last five years

Source: Responses to access requests from Investissement Québec (IQ), Loto-Québec, the Ministry of Executive Council (MCE), Revenu Québec and the Caisse de dépôt etplacement du Québec (CDPQ)

Rain of millions of dollars

Investissement Québec (IQ), in turn, spent more than $13 million on audit services, due diligence, technology support and valuation services for subsidiary sales.

Revenu Québec acquired $5 million in contracts from these large firms, including three Deloitte contracts worth $3.7 million last year for an identity management and administration solution.

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Loto-Québec, in turn, also granted more than $5 million to these large companies.

“The contracts awarded included, but were not limited to, drawing review, audit engagements (including review of financial reports) and regulatory compliance program reviews, market studies and technology support. », concludes François Racine, responsible for access to information.

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Posted in: Business Tagged: circle, consulting, firms, major, million, vicious

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