Skip to main content

RCMP contract awarded to company with ties to Chinese government, feds to review process

Share

Federal officials say they will review a contract awarded to a Canadian company last year, given its parent organization's ties to the Chinese government.

Ontario-based Sinclair Technologies Inc. received a contract in October 2021 worth $549,637 for radio frequency filters.

CTV News also found a number of other contracts, worth upwards of $90,000 each awarded to Sinclair Technologies since its parent company was bought in 2017, including with the RCMP, Fisheries and Oceans Canada, and the Department of National Defence.

The DND contract has no value associated with it but involved the delivery of antennas to bases. Contracts suggest the government has been awarding contracts to Sinclair since at least 2009.

In 2017, Hytera, which is partially owned by the Chinese government, purchased Sinclair Technologies' parent company, Norsat.

Not only are Hytera's products banned from being sold or imported in the United States over national security concerns, but the company also faces 21 espionage-related offences, including conspiring with former Motorola employees to steal trade secrets.

The RCMP provided a statement to CTV News saying the force's radio communications are protected with end-to-end encryption and that radio frequency filtration equipment "poses no security concerns nor does it allow access to radio communications."

"The contract was awarded in accordance with Federal Government procurement policies and regulations, and in accordance with the Trade Agreements," the statement reads.

"PSPC (Public Services and Procurement Canada) acted as the Contracting Authority for the Standing Offer Arrangement. The RCMP supported PSPC to ensure operational requirements were met."

CTV News has reached out to PSPC and DND but has not received a response. Fisheries and Oceans Canada was unable to respond by CTV's deadline.

In a statement, Sinclair said it is a trusted and independent company. It cited privacy reasons for being unable to comment further.

The revelation comes as the federal government attempts to take a tougher stance on China, unveiling its Indo-Pacific Strategy in November, which refers to China as "an increasingly disruptive global power."

During a media availability in Montreal on Wednesday, Prime Minister Justin Trudeau said he found it "disconcerting" that amid warnings about foreign interference, parts of Canada's civil service "were signing contracts that have questionable levels of security for our operations and our national security institutions like the RCMP."

"So absolutely we're going to be following up on this, finding out first of all what needs to be done to ensure that our communications technology is secure but also make sure we're figuring out how this could continue to happen. And make sure Canada is not signing contracts with the lowest bidder that then turn around and leave (us) exposed to security flaws," Trudeau said.

"We will have some real questions for the independent public service that signed these contracts and we'll make sure that this is changed going forward, it's high time that happened."

'OUT OF A SPY NOVEL'

In response to many inquiries during question period Wednesday on Parliament Hill, Public Services and Procurement Minister Helena Jaczek said, "Of course, we are aware of the concerns surrounding the RCMP's contract with Sinclair Technologies and our government is looking into them and examining all potential options. We do take all measures to ensure the integrity of our infrastructure very, very seriously."

Speaking to reporters on his way to question period, Conservative Leader Pierre Poilievre said the contract should be cancelled.

"I mean, it's almost something that you'd expect to be out of a spy novel, but characters in spy novels would never be that incompetent," Poilievre said.

"So the prime minister has to take the responsibility for his own government, rather than trying to blame everyone else all the time, and explain why he has put in place a system that allowed this contract to go ahead."

He added: "I think that we as a government, we as a country, should not allow countries and governments and government-owned enterprises that are known for espionage to sell technology that is related to our telecommunications in this country, because that raises risks of espionage and other security problems."

Public Safety Minister Marco Mendicino told reporters on Parliament Hill that he has instructed officials to look at the details of the contract and review how it was awarded.

"We're eyes wide open about the threats that are posed by hostile states and non-state actors, and that includes the PRC (People's Republic of China)," he said.

"One of the reasons why we put in place a process that looks at the potential opportunities or vectors for foreign interference in the context of contracts, is to secure Canadian national interests, to secure our national security."

Speaking on CTV's Power Play on Wednesday, former national security analyst Stephanie Carvin said the concern is not only that a Chinese-controlled company has received many federal government contracts, but that it is potentially undercutting Canadian companies, as well.

"You don't want to have a Chinese-controlled company basically providing the technology that's going to be used in very sensitive national security operations," Carvin said.

Also appearing on CTV's Power Play, U.S. ambassador to Canada David Cohen said he does not believe the awarding of these contracts erodes confidence in Canada, using the example of a federal government order in November for three Chinese companies to divest their investments in Canadian critical minerals.

"The whole world of cybersecurity, of Chinese ownership of American companies, Canadian companies, of contracting with Chinese-owned and controlled companies, is unbelievably dangerous and unbelievably complicated, and the key thing is whether the sensitivity is there to be able to look at those situations and to take action when you need to do that," he said.

With files from CTV News Parliamentary Bureau Writer and Producer Spencer Van Dyk, CTV Senior Digital Parliamentary Reporter Rachel Aiello and Reuters

IN DEPTH

Former prime minister Brian Mulroney dies at 84

Former Canadian prime minister and Conservative stalwart Brian Mulroney has died at age 84. Over his impressive career, the passionate and ambitious politician, businessman, husband, father, and grandfather left an unmistakable mark on the country.

Who is supporting, opposing new online harms bill?

Now that Prime Minister Justin Trudeau's sweeping online harms legislation is before Parliament, allowing key stakeholders, major platforms, and Canadians with direct personal experience with abuse to dig in and see what's being proposed, reaction is streaming in. CTVNews.ca has rounded up reaction, and here's how Bill C-63 is going over.

Opinion

opinion

opinion Don Martin: How a beer break may have doomed the carbon tax hike

When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.

opinion

opinion Don Martin: ArriveCan debacle may be even worse than we know from auditor's report

It's been 22 years since a former auditor general blasted the Chretien government after it 'broke just about every rule in the book' in handing out private sector contracts in the sponsorship scandal. In his column for CTVNews.ca, Don Martin says the book has been broken anew with everything that went on behind the scenes of the 'dreaded' ArriveCan app.

CTVNews.ca Top Stories

Hertz CEO out following electric car 'horror show'

The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.

Stay Connected