Good morning,
The RCMP is investigating allegations of misconduct involving an outsourced IT project at the Canada Border Services Agency after two tech entrepreneurs told senior officials about improper contracting practices and cozy relationships between the agency and private companies.
The founders of a small Montreal-based software company called Botler, Ritika Dutt and Amir Morv, alerted the CBSA to their concerns twice, first in September 2021 and, again, in November 2022. In response to questions from The Globe, the CBSA revealed for the first time that after receiving that second report, it launched an internal review and referred the matter to the RCMP.
The allegations stem from a relatively small contract, but the money came from a larger $21.2-million contract for general services that was also used by the agency to fund outsourcing work related to the ArriveCan app. Both projects involve the same three technology companies and were overseen by some of the same senior public servants. They also both share layers of subcontracting that keep key details – such as what the work involved and who received payments – from being disclosed to the public.
Ritika Dutt and Amir Morv on Parliament Hill in Ottawa, Aug. 31, 2023.Blair Gable/The Globe and Mail
This is the daily Morning Update newsletter. If you’re reading this on the web, or it was forwarded to you from someone else, you can sign up for Morning Update and more than 20 other Globe newsletters on our newsletter signup page.
NDP wins Manitoba election as Wab Kinew set to become first First Nations provincial premier in Canada
Wab Kinew will become Canada’s first First Nations provincial premier after his New Democrats won the Manitoba election.
Kinew’s victory followed a bitter campaign in which he fended off attacks from the incumbent Progressive Conservatives over a troubled past that included criminal charges.
Progressive Conservative Leader Heather Stefanson, who gravitated toward socially conservative positions during the campaign, conceded the race to Kinew and announced she would step down as leader of the Progressive Conservatives.
Far-right House Republicans help to oust Kevin McCarthy as Speaker
Eight Republicans, led by Donald Trump supporter Matt Gaetz, succeeded in ousting Speaker of the House of Representatives Kevin McCarthy yesterday, a move that threatens new legislative uncertainty with another U.S. government shutdown just 43 days away.
The small group voted alongside Democrats to remove McCarthy who gained the Speaker’s chair less than nine months ago after a punishing 15 rounds of voting in which he prevailed only after making a series of pledges to the party’s far right.
With Republicans in possession of only a slim five-seat majority in the House, Donald Trump’s supporters have wielded considerable influence over the party’s priorities.
Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com Need to share documents securely? Reach out via SecureDrop
Also on our radar
Ottawa suspends cleantech funding agency: The federal government has suspended its main federal funding agency for early-stage green technology from granting money, after a lengthy investigation uncovered evidence of conflict-of-interest breaches and lax governance involving Sustainable Development Technology Canada’s chief executive and board members.
Joly urges talks after India orders diplomats out: Foreign Affairs Minister Mélanie Joly urged India to begin quiet diplomatic talks to ease bilateral tensions after New Delhi ordered two-thirds of Canadian diplomats out of the country. Relations between Canada and India have sunk to a new low after allegations from Prime Minister Justin Trudeau that agents of India were involved in the killing of a British Columbia Sikh leader.
B.C.’s emergency response to 2021 disasters failed, ombudsperson says: B.C.’s emergency supports during the twin climate disasters of fires and floods in 2021 were inadequate and inaccessible for vulnerable evacuees, the province’s ombudsperson said in a new scathing review. In 2021, tens of thousands of people were displaced across B.C. as a result of the extreme weather events, including a forest fire that wiped out the town of Lytton and catastrophic floods that damaged critical infrastructure, highways and farms.
Greg Fergus elected new House Speaker: Quebec Liberal MP Greg Fergus was elected Speaker of the House of Commons yesterday, a week after the last speaker resigned because of his decision to invite and honour a man in Parliament who was later revealed to be a former member of a Nazi unit. Fergus, who is Black, will be the first person of colour to hold the position of Speaker.
Former RCMP civilian shared information seeking $20,000, Crown says: Cameron Ortis, a once high-ranking RCMP civilian shared some special operational documents with the head of an encrypted phone company and sought $20,000 in exchange for more, a Crown prosecutor said as the much-anticipated criminal trial began yesterday. Ortis, who is charged with allegedly leaking secrets while working for the Mounties, pleaded not guilty to all charges.
White nationalists visit Ontario memorial: Neo-Nazis and white nationalists are making pilgrimages to a memorial in Oakville, Ont., dedicated to the Ukrainian Nazi-led unit whose veteran was honoured last month in Parliament, prompting renewed calls from a Jewish group for the monument to be torn down.
Morning markets
Bond rout weighs on stocks: Stocks fell on Wednesday as an ongoing rout in global bond markets saw U.S. bond yields reach 16-year highs, challenging equity valuations and souring appetite for risk assets as investors bet interest rates will remain persistently high. Around 5:30 a.m. ET, Britain’s FTSE 100 was down 0.08 per cent. Germany’s DAX slid 0.15 per cent. France’s CAC 40 added 0.05 per cent. In Asia, Japan’s Nikkei lost 2.28 per cent. Hong Kong’s Hang Seng fell 0.78 per cent. New York futures were weaker. The Canadian dollar fairly steady at 72.99 US cents.
What everyone’s talking about
Tim Kiladze: “History shows that women who rise to the top often have to walk what is dubbed a glass cliff. Translation: They are more likely to get hired when organizations are in trouble or at risk, and are therefore thrust into a risky and precarious position. The brutal, but not unfair, way of saying the same thing: Women might only be given the chance to be CEO when the situation is so bad that a man may not want it.”
Rob Carrick: “Inflation will eventually crack. But if financial markets are right in their thinking as the final quarter of 2023 begins, it’s going to take longer than we thought to happen. Prepare for some hard days ahead.”
Cathal Kelly: “The Jays have to win to extend this series to Thursday. But they also have to prove that they are not baseball’s next jinxed club. If they can’t manage it, they will trail that tag, along with all their growing reputation as a purely regular-season concern, into the 2024 campaign.”
Today’s editorial cartoon
Editorial cartoon by David Parkins, Oct. 4, 2023.David Parkins/The Globe and Mail
Living better
Rewilding in the city begins with tree planting, and right now is the prime time to start digging
Trees and shrubs are magical. They provide sustenance and shelter to animals, and they play a vital role in the planet’s carbon cycle, taking in carbon as they release oxygen into the atmosphere. When it comes to planting, trees can be tough, but they’re not invincible. That’s why timing is key. The cooler temperatures of fall and spring are ideal. The best windows are when the ground is not frozen but the trees have no leaves.
Moment in time: Oct. 4, 1982
Pianist Glenn Gould at Lake Simcoe, July, 1958.Erik Christensen/The Globe and Mail
Glenn Gould dies
“The purpose of art,” Glenn Gould said in 1962, “is not the release of a momentary ejection of adrenaline but rather the gradual, lifelong construction of a state of wonder and serenity.” Two decades later, on this day in 1982, the internationally renowned pianist died, having never recovered consciousness after suffering a massive stroke a week earlier. He was just 50 years old. His genius was commemorated in a one-hour memorial service at St. Paul’s Anglican Church in Toronto, which was later broadcast on CBC Radio. “The full impact of what we and the world had lost did not strike until after the Blessing, when the church was suddenly filled with the haunting sounds of the Aria da Capo from Bach’s Goldberg Variations,” wrote Globe and Mail classical-music critic John Kraglund. It was from a 1981 re-recording by Mr. Gould of the same work that had introduced the wunderkind to the world in 1956. At the time of his death, Mr. Gould was entering a new phase in his musical career – as a conductor. His artistic constructions were indeed a lifelong pursuit. Brad Wheeler
Read today's horoscopes. Enjoy today's puzzles.
If you’d like to receive this newsletter by e-mail every weekday morning, go here to sign up. If you have any feedback, send us a note.