'Major scandal' facing Quebec government

Opposition is demanding public inquiry into the government's actions

'Major scandal' facing Quebec government

Insurance News

By Josh Recamara

Quebec’s government is embroiled in what some observers call the province’s most significant political scandal since the Charbonneau commission, which exposed corruption in the construction industry.

The controversy centers on the digital transformation of Quebec’s auto insurance board, which has seen cost overruns surpassing half a billion dollars. The issue has dominated headlines since the auditor general’s damning report nearly two weeks ago and has already led to the resignation of a government minister.

On Sunday, Premier François Legault announced a public inquiry to investigate the affair, following reports that members of his government knew about problems with the board’s new online platform before its troubled launch.

“You not only have the right, but you are correct to be angry,” Legault wrote on X. “We are going to get to the bottom of things.”

‘Major’ scandal

Émilie Foster, an adjunct professor of political management at Carleton University and former member of the legislature for the Coalition Avenir Québec (CAQ), said Quebec hasn’t seen a controversy of this magnitude since the Charbonneau commission, which examined corruption in public contracts and illegal political financing.

“This is a major scandal,” Foster said, as quoted by The Canadian Press. “Like we haven’t seen in Quebec for a long time.”

The problems stem from the Société de l’assurance automobile du Québec (SAAQ), which botched the 2023 launch of its new online platform, SAAQclic. The rollout led to major delays and long lines at service centers, leaving Quebecers waiting hours in freezing temperatures to take road tests, register vehicles, and renew licenses.

The controversy resurfaced last month when the auditor general revealed that the cost of the platform had ballooned by at least $500 million, bringing the total to more than $1.1 billion.

Initially, government ministers claimed they were unaware of the rising costs and accused the SAAQ of misleading them. However, media reports later suggested that at least two ministers and Quebec’s top civil servant were informed of the problems before SAAQclic’s launch in February 2023.

The fallout has already led to the resignation of Éric Caire, the minister responsible for cybersecurity and digital technology. Following his resignation, Legault appointed Gilles Bélanger as the new minister of cybersecurity and digital technology.

Foster noted that while the SAAQclic scandal doesn’t currently appear to involve government corruption - unlike the Charbonneau inquiry, which resulted in criminal convictions - it could still be politically damaging for a government already struggling in the polls. “This is a major exposure risk,” she said. “The government will be on the defensive constantly.”

Opposition demanding public inquiry

Last week, the government asked Quebec’s financial watchdog, the Autorité des marchés publics, and the anti-corruption police to investigate. However, opposition parties were not satisfied and pushed for a full public inquiry, a demand that Legault ultimately conceded to over the weekend.

In a letter to the premier on Monday, Parti Québécois Leader Paul St-Pierre Plamondon questioned how Legault could have been unaware of the problems when his ministers and top civil servant knew about them. “The official version of the government therefore still does not hold water,” he wrote.

Liberal legislator Monsef Derraji said he wants answers about why the SAAQ concealed $222 million in cost overruns during the 2022 election campaign. “This is the biggest, biggest problem,” Derraji said.

Meanwhile, Haroun Bouazzi of Québec solidaire said the SAAQclic fiasco was just one example of a systemic issue in Quebec’s handling of IT projects. He pointed to previous cost overruns, including a failed Liberal government project to modernize human resources systems for public employees.

“I think it's important to find why we're so bad at delivering any technology system,” Bouazzi said, adding that the scandal does not inspire confidence in the government’s ability to manage more complex projects.

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