Ottawa’s pandemic small business loan program lacked checks and balances: AG

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Auditor General,COVID-19,Karen Hogan

Auditor general Karen Hogan says the Canada Emergency Business Account program wasn’t managed with 'due regard for value for money.'

Hundreds of thousands of businesses used the Canada Emergency Business Account loan during the COVID-19 pandemic. The deadline to pay it back is next week, but some businesses say paying off the loan on time would be crippling. Slav Kornik reports – Jan 12, 2024The Canada Emergency Business Account program lent 898,000 small businesses $49.1 billion to help cover expenses such as rent and payroll during the pandemic.

Hogan’s report says the Crown corporation gave that vendor, Accenture, “too much control over key aspects of contracts, such as the scope of work and pricing, and failed to exercise basic controls in contract management, such as monitoring that amounts paid aligned with the work performed.” Hogan told reporters she is “concerned that EDC only partially agreed with our recommendation that it should carry out additional work to identify all ineligible recipients and recover the amounts involved.”In an emailed statement, Export Development Canada said it only partially agreed because in “practical terms, implementing would be challenging and may also come at significant cost.

 

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