SAAQclic: Legault’s right-hand man reportedly did not read the document on $222M overspending

A third version of the details on the cost overruns for the SAAQclic project, whether or not they were given in September 2022 to Yves Ouellet, Premier François Legault’s right-hand man, appeared before the Gallant Commission on Friday, with testimony from Vice President of Legal Affairs Marie-Ève Beaulieu.

The former CEO of the Société de l’assurance automobile du Québec, Denis Marsolais, stated in his testimony last June that the $222 million cost overruns had been presented to Yves Ouellet, the secretary general of the government and the highest-ranking civil servant, at a meeting in September 2022.

Ouellet denied having been informed of these cost overruns at that meeting when questioned by the commission earlier this month. Legault has maintained from the outset that he learned of them when Auditor General Guylaine Leclerc’s report was tabled last February.

However, Beaulieu, the third person who participated in this summit meeting on September 7, 2022, testified that a folder of documents, one of which reported the cost overruns and the contractual strategy to be adopted, had indeed been given to Ouellet.

Concerned only with deployment

Beaulieu said, “His [Ouellet’s] concern is clear. It’s September. At this point, there is a desire to roll out the system during the holiday season. He asks us—his concern is clear—’Are you ready to roll out as desired?’ He obviously felt that the deadline was short, and then he asked us if we needed additional time.“ The SAAQ believes that we do not. At this point, the signs are positive,” she said.

Commission attorney Mélanie Tremblay returned to the charge, pointing out that the envelope in question contains a document entitled “Contract Strategy.”

This document presents two scenarios for making up the $222 million shortfall: either signing an amendment covering the entire amount or using “different contractual vehicles,” i.e., entering into amendments as the work progresses.

Beaulieu reiterated that this issue had not been raised during the meeting.

Forcing delivery: option ruled out

These two scenarios were presented to the board of directors a week later, along with an analysis of the risks associated with each.

Beaulieu acknowledged that she had also considered forcing the alliance formed by SAP and LGS (IBM) to complete the contract without adding any money, even though the contract budget would be empty by the end of the year. However, this option was abandoned due to the risk of litigation in court.

This possibility was therefore never presented to the board of directors. Beaulieu acknowledged that it “could have been presented” to the board, but she would not have recommended it because she saw it as a high risk, particularly the risk of having to defend itself in court and “prove the contractor’s fault.”

In other words, the board of directors never had any option other than the two that provided for paying the $222 million overrun, either in a lump sum or in installments.

Avoiding public disclosure

The latter option was chosen because adding amendments worth less than 10 per cent of the total value of the $458 million contract exempted the SAAQ from the legal obligation to publish details of the addition.

The option of covering the entire shortfall of $222 million, which would have required this decision to be made public, presented a “high political and media risk,” according to her office’s analysis. “An amendment of $222 million represents almost 50 per cent of the initial contract,” she explained to Commissioner Denis Gallant.

In September 2022, the board of directors finally approved “option 2,” which involves paying as needed using “various contractual vehicles.”

Beaulieu nevertheless pointed out that these amendments are cumulative and should therefore eventually be made public.

–This report by La Presse Canadienne was translated by CityNews