Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, December 13, 2017 -

Defence Construction (1951) Limited (a.k.a. Defence Construction Canada or the Corporation) provides procurement, construction, professional, operational, and maintenance services in support of the defence of Canada. And although the Corporation employs sound corporate management practices, some improvements are needed in a few areas pertaining to risk management, according to a report of the Standing Committee on Public Accounts tabled today in the House of Commons by the Hon. Kevin Sorenson, Chair of the Committee.

On 2 December 2016, the Office of the Auditor General of Canada (OAG) presented the findings of a performance audit whose objective was to determine whether the Corporation’s systems and practices selected for examination were providing it with reasonable assurance that its assets were safeguarded and controlled, its resources were managed economically and efficiently, and its operations were carried out effectively, as required by section 138 of the Financial Administration Act.

Overall, the OAG found there were no significant deficiencies in this regard; however, it did find that the Corporation did not did not consider all aspects related to fraud risks, such as the inability to deal with potential allegations of fraud, corruption, and collusion. Consequently, the Committee has made four recommendations in this report that aim to address the concerns raised by the OAG.