Spat upon once again, the SAAQ's chief has reengaged internal auditors.
The head honcho of Société de l'assurance automobile du Québec (SAAQ), Eric Ducharme, has been under fire following a witness's testimony about his dismissal of internal auditors who cautioned him about issues with the digital transformation and the financial statements of the crown corporation.
Auditors Dismissed Amidst Warning on Digital Transformation Issues
Marie-Line Lalonde, a former internal audit advisor at the SAAQ from June 2018 to April 2024, described the ordeal as a "spit in the face" when her team's work was dismissed. Lalonde claimed that Ducharme and his team showed minimal interest in the audit team's findings, despite the multiple obstacles they outlined in their work.
In a meeting with Ducharme on January 24, 2024, internal auditors raised concerns about a host of issues that hampered their work, including computer problems that prevented the SAAQ from collecting funds, for example on luxury vehicles or those that consume a lot of fuel. Sadly, the predictions made by the auditors proved accurate, as the subsequent SAAQclic project weighed down the production of the crown corporation’s financial statements, which were eventually delivered in January 2025 with a nine-month delay and a deficit of $122 million.
Witness Describes Uncooperative Management and Intimidation
Lalonde went on to describe the internal resistance her team faced from SAAQ managers. She shared instances of refusal to provide certain information, departments creating roadblocks with an overwhelming amount of documents, and some sectors playing a game of passing the buck with information requests.
An internal audit document prepared for the January 2024 meeting outlined the team’s grievances. The document described management as more interested in defending themselves rather than addressing the anomalies, requests to modify findings and recommendations to reduce their impact, and poor listening skills from governance. Lalonde further characterized Ducharme as unapproachable, disinterested, and dismissive of her team's findings.
The Upcoming Testimony of Eric Ducharme
The lawyer representing the crown corporation is pushing for Ducharme's testimony to be expedited due to concerns that the public's trust in the SAAQ may be shaken if the testimony does not take place until mid-August. The request is currently under consideration by Judge Denis Gallant.
The SAAQ and Its Questionable Contracts
The SAAQ has a history of questionable contracts, particularly in regards to the SAAQclic project. Over 1,800 "satellite" contracts were awarded over the past decade which, along with the main contract with SAP and LGS (IBM alliance), have led to costs escalating to at least $1.1 billion – more than double the initial budget. The project has faced significant delays, scrutiny, and controversy due to its cost escalation, governance failures, and contractual and financial irregularities.
A Complicated Picture
The investigations into the SAAQ’s digital shift are ongoing, with the Gallant Commission and Quebec’s anti-corruption unit looking into a wide range of issues, including the dismissal or marginalization of internal auditors, the integrity of financial statements, and broader governance and oversight failures. While the specific dismissal of auditors has not been confirmed, the inquiry has highlighted serious concerns about transparency, cost control, and the proper awarding of contracts as the project spiraled out of control.
- The upcoming testimony of SAAQ's head, Eric Ducharme, has sparked concerns about French policy-and-legislation, given the severe implications for the crown corporation's digital transformation and financial statements.
- The French politics surrounding the SAAQ have been in the general-news recently, with allegations of questionable contract practices, dismissal of internal auditors, and governance failures associated with the SAAQclic project.
