After Ottawa Cancel the military contract of Ukraine, the pressure is growing to explain – nationally
The Federal Government refuses to say why the deal has been quietly approved for refurbishing military vehicles for Ukraine and the Canadian company involved says “
Defense Minister David McGuinty told the House of Commons Defense Committee this week that his department canceled the contract with Armatec Survival in Dorchester, but said he could not explain the reason behind the decision.
Conservatives say the risk of canceling the contract makes Canada appear as an unreliable ally in Ukraine and undermines the country’s commitment to strengthening its domestic defense industry.
“Until last week, everyone thought that this project was just delayed but it was on the way to delivery, and armatec was saying that they just needed flow vehicles,” defense critic James BeZan said in an interview on Thursday.
“I blame the government for this.”
Conservatives tried to get answers from Stephen Fuhr, Secretary of State for Procurement, in the House of Defense Committee on Thursday why the contract was submitted, but the Department of Defense (DND).
“I don’t know” why the contract was cancelled, said Fhr repeatedly.
Conservative MP Scott Anderson asked the fuhr how much of the $250 million he said the contract was worth was lost, and that the money was included in Canada’s plan to reach two percent of GDP in defense.
Fuhr said he did not even know that the aid contracts for the Ukrainian military were not subject to the New Defense Investment Agency law that he had led.
A DND spokesperson said the department could not comment on the contract with Armatec “due to confidentiality obligations.”
The Canadian Commerce Corporation, which has developed government procurement contracts for Ukrainian aid, deferred questions to the DND.
Armatec has been awarded millions of dollars in Canadian defense contracts since 2007, according to government records. It also rebuilds and develops military vehicles for the Canadian armed forces, and also supplies parts to the US military and other allies.
Armatec CEO Karl Pfister told world news that his company is ready to continue doing that work, but would not comment on the written statement he said was approved.
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“What I can say is that armatec is ready, willing and able to move the development of infantry fighting vehicles and related technologies to Canada and Canada to support defense efforts and the need to renew and have the need to renew Arm Europe,” he said.
“And I would also say that armatec is a Canadian company that uses Canadian workers to advance Canadian technology and technology for the purpose of delivering infantry fighting vehicles that exceed the current ones.”
Bezan said the company is under a nondisclosure agreement with the government that prevents it from saying anything, putting armatec in an “impossible position” as its “long-term survival” is at risk.
He said this is the first time he has seen a contractor banned from speaking after the contract was cancelled.
“I have never seen the Canadian government go after a contractor who is trying to bring equipment to support Canada and its allies. This makes no sense,” he said.
“The question is, what are the liberals trying to hide?”
Why is a defense contract not covered?
Richard Shimooka, a senior fellow at the MacDonald-Laurier Institute who studies defense policy and procurement, said there are several reasons why a contract like Armatec could be canceled, but he could not talk about specific details.
He noted that most of the armored vehicles emblazoned with the question had previously been sent to Canadian forces in Afghanistan, and had ‘probably taken a beating’ over the decades – a long war there.
“It is possible that these vehicles are in a worse condition than expected and (armatec) may say ‘it is no longer financially possible for us to do it under the terms of the contract,'” the government said on the ground as an example of a factor that could light up.
“Given Canada’s penchant for using the most advanced vehicles, you have to ask what kind of material condition they’ve been given?”
Shimooka doubts that the cancellation spoke to a broader plan to cut costs by the liberal government or a change in its approach to helping Ukraine. Instead, he said the government may have wanted the project done “urgently” and decided that was no longer possible.
Bezan said that clear answers are needed, and will not continue to be read in the defense committee.
“Until the summer, the ancient Ukrainians were still waiting and wondering where these cars were, and they were looking for them,” he said. “And there is no commitment from the government to replace this with anything else.
“It shows the hypocrisy of the government that they support Ukraine, but they don’t liberate it. They say they will support the defense industry and be able to deal with them, this proves that we have the ability to defend.”
DND told world news that Canada “remains unwavering in its support for Ukraine and its importance to provide timely and effective military assistance to the Ukrainian armed forces.”
“As part of $2 billion in additional military aid announced by Prime Minister Carney, Canada is also looking to provide additional capabilities to Ukraine,” said a spokesperson for the organization.
“We are calling for more contracts with the Canada Commerce Corporation to get effective skills into the hands of Ukraine as soon as possible.”
The Prime Minister’s Office says the $2 billion addition to the military includes $835 million for armored vehicles and other critical equipment.
Canada is in the process of delivering 50 armored vehicles built by London, Ont. Based on General Dynamics Land Systems-Canada under a separate contract of $ 650 Contract signed in 2023.
The first cars are being delivered to Europe in June 2024, and McGuinty said on Tuesday that the remaining cars are on track for delivery by the end of this year.
Speaking Friday at the Empire Club of Canada, McGuinty said the government is reversing the process of procurement of defense equipment to provide “better Clarity!
“I know that one of the basic challenges facing the Canadian sector is the lack of clear and unpredictable signs that are wanted by the government,” said the Minister, without mentioning any specific contracts.
“How can you invest in a product if you don’t know what your primary consumer thinks?”
