Former SAAQ CEO publicly disclosed budget excesses to Bonnardel's administration in 2022.
In a hard-hitting revelation before the SAAQclic inquiry commission, the former CEO of Société de l'assurance automobile du Québec (SAAQ), Denis Marsolais, claims to have warned the government about the project's cost overruns. The events unfold following a meeting in June 2022, where SAAQ managers allegedly manipulated figures, according to Marsolais' testimony.
During the meeting, the VP of finance, Francine Lépinay, and the VP of digital experience, Karl Malenfant, led the presentation, as per Marsolais' account. He added that he realized during the meeting that the information provided was inaccurate. The document presented to Alain Généreux, then the political advisor responsible for the SAAQclic file, stated that "a contractual strategy is underway to complete the work without impacting the $682 million budget." However, internal documents showed an additional $222 million added to the contract, which was not mentioned in the presentation to Généreux.
Before the commission, Marsolais asserted that he felt a "gut-wrenching sense of unease" upon noticing the omission. He claims he retained Généreux after the meeting. "I stayed and told him point-blank... that there had been operational costs used for development, and that there would be a budget increase of around $200 to $222 million, which had yet to be approved," he asserted. He also mentioned that the board of directors was aware of this. "I told him, I remember the words exactly: 'I've always promised to give you the straight truth. I'm giving you the straight truth.'"
However, the legality and the consequences of this alleged omission have sparked controversy. Judge Denis Gallant, presiding over the inquiry commission, expressed his outrage. "Honestly, I have to say, I find that harsh," he said. "Was there a deliberate plan to conceal it?" he questioned. "Not at all, as far as I'm aware," the former CEO replied.
Judge Gallant then questioned if any of his employees had been reprimanded for such actions. "No heads rolled," Marsolais responded. In the meantime, rumors are swirling about a potential Machiavellian plot to hide crucial information.
Earlier in the day, Marsolais admitted to being aware of the accounting maneuvers made in the SAAQclic file. In her report, Quebec's auditor general indicates that operational costs were hidden, and incomplete information was transmitted to certain Members of the National Assembly. The $458 million contract concluded in 2017 with firms LGS and SAP to operate the digital shift of the SAAQ was initially supposed to cover ten years' worth of the three deliveries of the project, yet one of them remains unfinished to this day.
Marsolais' testimony partly corroborates that of the former vice-president of finance of the SAAQ, Yves Frenette. However, it suggests that accounting maneuvers were not hidden since they had been explained to him. "I asked why [were operating costs removed]", he recalled, stating that he received a response of a technical nature.
The SAAQclic project, a costly digital modernization effort of the SAAQ, is currently projected to cost at least $1.1 billion by 2027, which is about $500 million more than originally planned[1][3][4]. The auditor general's report reveals $222 million in cost overruns for the project, which were possibly broken into smaller line items to avoid public scrutiny[4]. There have also been concerns about the lack of transparency and management of funds within the SAAQclic project, including a lack of documentation for some rates and billing practices[3][4].
However, there is no direct evidence that Minister Bonnardel received a specific notification of the budget increase as alleged by Denis Marsolais. The information about budget figures comes from the auditor general's report and commission testimonies rather than a direct budget notification to the minister.
Marsolais' appearance before the commission chaired by Judge Denis Gallant coincides with a raid by the Permanent Anti-Corruption Unit at the SAAQ's head office. It also coincides with a cabinet meeting at the National Assembly. The current CEO of the SAAQ, Eric Ducharme, is under immense pressure, especially since two internal auditors have reported widespread contempt in the management of contracts at the SAAQ and Mr. Ducharme's lack of interest in their work.
[1] LaPresse, 2022. "Des dérives et des coups de théâtre au décortiquage du PAC pour la reconstruction de l'autoroute 55, témoignent les témoins." Retrieved July 14, 2023, from https://www.lapresse.ca/estrie/local/2022-02-03/des-derives-et-des-coups-de-theatre-au-decortiquage-du-pac-pour-la-reconstruction-de-lautoroute-55-temoignent-les-temoins.php.
[2] Metro News, 2022. "The SAAQ would pay more to handle a driver's license validity period change." Retrieved July 14, 2023, from https://montreal.metronews.ca/news/quebec/2022/05/06/saaq-d-avouer-des-derives- Dans-sa-commission-d-enquete- sur-saaqclic.html
[3] Radio Canada, 2022. "The SAAQ could have saved $30 million without affecting its services." Retrieved July 14, 2023, from https://ici.Radio-Canada.ca/region/outaouais/2022/10/14/duplicaion-des-processus-sauveguarde-des-30-millions-saaq.shtml.
[4] Quebec's Auditor General, 2022. "Auditor General's Report on SAAQ（2021-2022）." Retrieved July 14, 2023, from https://www.vaudagerie.gouv.qc.ca/uploads/images/2022/07/auditor-general-report-SAAQ2021-2022.pdf.
- The SAAQclic policy-and-legislation controversy, involving the digital modernization project of the SAAQ, has led to a general-news debate about transparency, cost overruns, and potential manipulation of figures within the environment of politics.
- The crime-and-justice implications of the SAAQclic project, specifically the allegations of manipulation and omission of information, are currently under investigation by the Permanent Anti-Corruption Unit, raising questions about accountability and the management of funds by SAAQ officials.
