Latest news with #KarlMalenfant
CTV News
03-07-2025
- Business
- CTV News
SAAQclic: Judge Denis Gallant refuses to grant participant status to Karl Malenfant
Commissioner Denis Gallant presides over a special inquiry into the causes and circumstances underlying the problems with managing and implementing the CASA program for the Societe d'Assurance automobile du Quebec, in Quebec City on Thursday, May 15, 2025. (Jacques Boissinot/The Canadian Press) Judge Denis Gallant, who is leading the inquiry into the SAAQclic fiasco, refused on Thursday to grant participant status to Karl Malenfant. The former vice-president of information technology at Quebec's auto insurance board (SAAQ) had requested to be a participant on June 18. In his decision handed down on Thursday, Gallant stressed that Malenfant does not need such status as he will be invited to testify before the inquiry at the end of the summer. Participant status would have allowed Malenfant to cross-examine witnesses, as SAAQ lawyers have been doing since the beginning of the proceedings. The SAAQclic fiasco is expected to cost taxpayers at least $1.1 billion by 2027, according to calculations by the Auditor General of Quebec. Malenfant, whose name is constantly mentioned at the commission, laments facing a 'significant reputational risk.' This report by The Canadian Press was first published in French July 3, 2025. By Caroline Plante, The Canadian Press
CTV News
21-06-2025
- Business
- CTV News
SAAQclic: Former CEO says his confidence in IT VP has been shaken
Commissioner Denis Gallant of the Commission of Inquiry into the Management of the Modernization of the Société de l'assurance automobile (SAAQ) IT Systems is awaiting the start of the public inquiry into the failures of the SAAQclic platform in Montreal on Thursday, April 24 2025. A public inquiry into the SAAQ's costly digital transformation has revealed that it could cost the province nearly half a billion dollars more than originally anticipated. (Christinne Muschi/The Canadian Press) The former president and CEO of Quebec's auto insurance board (SAAQ) says his confidence in his IT leader 'seriously eroded' after the failed launch of the SAAQclic platform, but he was not ready to fire him. On Friday, Denis Marsolais testified about the first weeks of the crisis that followed the disastrous rollout of the new interface in February 2023. He was the one who found himself in the spotlight 'defending his organization' in the media. He relied on the words of his vice-president of information technology (IT), Karl Malenfant. Marsolais gave the example of a radio interview with host Paul Arcand in the early days of the crisis. 'I told him, 'Rest assured, Mr. Arcand, I'm told that the problems (with) the software will be resolved within two to three months.'' 'Again, I'm not making this up. I'm not the expert. I was told that the problems would be resolved within three months,' Marsolais told the Gallant Commission. 'Who told you that?' asked Commissioner Denis Gallant. Malenfant, replied the former CEO. 'Mr. Malenfant, he's selling you the seventh wonder of the world, and you end up with a system that doesn't work,' said the commissioner. Gallant asked him if he still trust his VP of IT, even though there were endless queues in front of the branches and people were not signing up for the platform. 'Now it's starting to seriously fall apart,' Marsolais acknowledged. Yet in the weeks and days leading up to the launch of SAAQclic, he said he was confident about the project, despite some warnings. 'Everyone was not only confident, but agreed to roll it out and that we were ready for deployment. So I trusted the experts around the table,' he said. 'I wasn't told everything' Marsolais suggested that he ultimately felt betrayed by Malenfant. 'Throughout my career, I have always had associate deputy ministers and vice-presidents in my inner circle. I have always trusted these people. They have always been loyal to me. They have never betrayed my trust,' he said. 'Today, I have to tell you that I think there is an exception to the rule,' he added. Marsolais felt that Malenfant did not give him 'all the information at the right time.' 'I am increasingly certain that I was not told everything,' he said, adding that he 'should have been more vigilant.' The executive revealed that someone had suggested he dismiss his IT boss in March 2023. He felt that replacing Malenfant in the middle of a mess would have been 'even more dramatic.' 'I told him that Mr. Malenfant is theoretically retiring in December. (...) I said, 'Give me until June. In June, he will take early retirement and that's it,'' explained Marsolais. Instead, it was Marsolais who left first, when he 'left his role' in April. He is now president of the Office de la protection du consommateur (consumer protection agency). Summer break The conclusion of Marsolais' testimony on Friday marked the end of the eighth week of hearings by the Gallant Commission, which aims to shed light on the setbacks encountered during the SAAQ's digital transformation. Public hearings are suspended until Aug. 18 for a summer break. In the meantime, the commission team will continue its investigation. Tens of thousands of documents must be reviewed. To date, more than 300 exhibits have been filed and 45 witnesses have been heard during the public hearings. 'One thing is already clear: the overall budget for the project has grown to immeasurable proportions,' said the commission's chief prosecutor, Simon Tremblay. The SAAQ's failed digital transition is expected to cost taxpayers at least $1.1 billion, or $500 million more than anticipated, according to calculations by the Auditor General of Quebec. One of the next areas the commission is expected to examine is 'who knew what.' 'We got a taste of it this week. This is the beginning of that part,' said Tremblay. There are still several key players to be questioned, including former CEO Nathalie Tremblay and the current CEO, Éric Ducharme, as well as Malenfant, whose name has come up repeatedly since the testimony began. The latter submitted a request this week to obtain participant status, which would allow him to cross-examine witnesses. His request is currently under review. CAQ ministers François Bonnardel and Geneviève Guilbeault have also not been heard so far. The commission will have to hear them before the National Assembly resumes its work in mid-September. The Legault government has granted the Gallant commission a two-and-a-half-month extension to complete its mandate. The commissioner must submit his report by Dec. 15 at the latest, according to the new schedule. This report by The Canadian Press was first published in French June 20, 2025. Frédéric Lacroix-Couture, The Canadian Press
CTV News
12-06-2025
- Business
- CTV News
SAAQclic fiasco: Gallant commission extended until mid-December
Commissioner Denis Gallant of the Commission of Inquiry into the Management of the Modernization of the Société de l'assurance automobile (SAAQ) IT Systems is awaiting the start of the public inquiry into the failures of the SAAQclic platform in Montreal on Thursday, April 24 2025. A public inquiry into the SAAQ's costly digital transformation has revealed that it could cost the province nearly half a billion dollars more than originally anticipated. (Christinne Muschi/The Canadian Press) The Quebec government announced Thursday that it agreed to extend the Gallant commission investigating the SAAQclic fiasco until Dec. 15, 2025. Commissioner Denis Gallant was originally supposed to submit his final report into the auto insurance board by Sept. 30. He will need more time to complete his mandate; testimony has been ongoing for six weeks, but is far from complete. The commission has heard from several former members of the board of directors of the Société de l'assurance automobile du Québec (SAAQ), former internal auditors and a former vice-president of finance. It has not yet heard from the chief executive officers, the project manager who was at the heart of the digital transformation, Karl Malenfant, or Coalition Avenir Québec ministers. This report by The Canadian Press was first published in French June 12, 2025. By Caroline Plante, The Canadian Press
CTV News
10-06-2025
- Business
- CTV News
SAAQclic ‘bumpy' as early as 2018, witness tells Gallant commission
The Gallant Commission, tasked with investigating the failures of the Société de l'assurance automobile du Québec (SAAQ) IT transition, on May 15, 2025, in Quebec City. (The Canadian Press/Jacques Boissinot) The digital transition at Quebec's automobile insurance board (SAAQ) was already 'bumpy' in 2018, the commission investigating the SAAQclic fiasco heard Monday. Sylvain Cloutier, director of the project office, testified before the Gallant commission, which travelled to Quebec City to begin its sixth week of hearings. He spoke about the coloured indicators used by his team to track progress — markers that, without clear explanation, often shifted from red to green. 'When things become increasingly chaotic, doesn't accountability matter?' asked Justice Denis Gallant, pressing Cloutier on his apparent lack of control over how the colours were assigned. Cloutier said the indicators 'on their own weren't enough' to give a full picture of the project's status. The board's vice-president of information technology, Karl Malenfant, would regularly step in to offer 'explanations.' Malenfant's name has surfaced repeatedly over the past six weeks at the Gallant commission. 'There were problems, but Mr. Malenfant didn't try to hide them,' said Cloutier. 'He's an experienced man. He's led major projects at Hydro-Québec, at Rio Tinto. He knows what he's talking about. He came in to explain things and reassure the team — not reassure as in spinning stories,' Cloutier added. 'Was everyone aware?' commission lawyer Vincent Ranger asked. 'Was Mr. Malenfant transparent about how difficult the rollout was?' 'Yes,' Cloutier replied. 'Would it be fair to say Mr. Malenfant is naturally optimistic?' Ranger followed up. 'Yes, that's true,' Cloutier said. 'But not in a head-in-the-clouds way. He likes a challenge.' 'I didn't take bribes' Cloutier also admitted Monday to manipulating a public tender worth over $1 million so it would be awarded to external consultant Stéphane Mercier. 'That was my mistake,' Cloutier acknowledged under questioning from Justice Gallant. 'I'm not saying what I did was right. But I take responsibility — it was me.' In 2017, Cloutier urgently requested the bidding threshold be lowered to $990,000 after Mercier informed him he couldn't qualify for the contract because he didn't have authorization from Quebec's financial markets authority. That authorization is required for contracts valued at more than $1 million. 'I was in a panic,' Cloutier said, recalling thinking, 'If I don't have this guy to keep going, we're in deep trouble (…) I'm losing expertise.' 'I did it with the intention of not delaying the project,' he said. 'I didn't take any bribes. I'm not going on fishing trips. I'm not sailing around on a yacht. That's not what this is.' This report by The Canadian Press was first published in French June 9, 2025.
CBC
06-06-2025
- Business
- CBC
Quebec's anti-corruption unit reveals it's been investigating SAAQclic debacle for months
Quebec's anti-corruption unit, known as UPAC, announced on Thursday it has been investigating the chaotic rollout of SAAQclic for more than three months. The unit had been analyzing the available information surrounding Quebec's automobile insurance board's failed digital shift but would not confirm whether it had initiated an investigation. The anti-corruption commissioner, who co-ordinates UPAC's operations, confirmed the news of the investigation in a news release Thursday. Given the "exceptional circumstances" surrounding the issue and after having studied the scathing report by the province's auditor general, the commissioner said the team launched an investigation at the end of February into "possible wrongdoing in the management of the CASA/SAAQclic IT project." Mathieu Galarneau, spokesperson for the commissioner, indicated in the statement that no further details on the ongoing investigation would be provided. The rollout of the Société de l'assurance automobile du Québec (SAAQ)'s digital platform is also being investigated by the Gallant commission — a public inquiry presided over by Denis Gallant, which began on April 24. So far, there have been several revelations, including a fourfold increase in the hourly rates of consultants. A former internal auditor at the SAAQ also told the inquiry that several people who won calls for tenders for "strategic resources" had professional ties with Karl Malenfant, the former vice-president of the SAAQ's digital experience and the project director for CASA. François Geoffrion, who sat on the SAAQ's board of directors from 2013 to 2022, told the commission the board knew that the digital transformation project was "risky" and had "all the flaws." At the end of May, Jérôme Verreault, a former financial controller at SAAQclic, explained to Gallant and his team that payment delays were "exploding" and the SAAQ even received "notices of termination of services" from its suppliers. The public inquiry will continue throughout the summer.
