Sunday, May 4, 2008

Outsourcing error left taxpayers at risk

The auditor general gave a qualified nod of approval last week after a limited look at how the Liberal government outsourced $1.6 billion worth of work in its first term.

The bottom-line was that it's working reasonably well -- despite the fact the government almost gave away the store in one of its first deals.

His report finally explains a rather vague deal from last year that was never really publicly justified. It was a "contract refresh" the government initiated with EDS Advanced Solutions.

After signing a 10-year, multimillion-dollar deal to turn over revenue collection to the private company, the government redid the agreement not even two years in.

The Liberals announced the radical new arrangement in 2004 and lauded the deal as the answer to all their prayers. It would be a "centre of excellence" for chasing delinquent taxpayers.

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