The Blueprint: Millions extra in the McKinsey scandal
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Summary
In this episode, Conservative MP Stephanie Cusey joins us to talk about the latest scandal involving McKinsey & Co. and the Liberal government's contract with the global consulting firm, McKinsey. We discuss the scope of McKinsey's involvement with the Liberal Government, and how it may have reached into other areas of the government.
Transcript
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Hello and welcome once again to The Blueprints. This is Canada's Conservative Podcast. I'm your
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host, Jamie Schmael, Member of Parliament for Halliburton, with new content for you
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listen or download it right this second, download it on platforms like CastBox, iTunes, Google Play,
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Spotify, you name it, it is out there for your listening and doing pleasure. We have a great
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show lined up for you today. I know we say that every single week, but there's been a lot of
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developments going on with liberal ethics violations. Specifically, this just kind of broke last week,
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and I know it's not really in the news cycle because the House of Commons isn't sitting right
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now, but this contractor, this contracting firm, McKinsey, awarded more than $100 million,
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$100 million since 2015. Half of that $100 million was sole source, meaning they didn't have to go up
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for competition or even compete with other firms. They got a contract, and that is significant because
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that is a massive growth in the use of private sector consultants, even compared to the Harper
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government. So to come on and talk to us about that, we brought on Stephanie Cusey, the Member of
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Parliament for Calgary Mindeport. She's also the Treasury Board critic. There she is. She's been on
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the show before. Appreciate her coming back. It's been too long since we've had you on the show.
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Sadly, we have to bring you on and talk about this absolute mess that's going on. Well,
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we have a whole bunch of mess, but this latest one. No, you're right, Jamie. Well, first of all,
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it's a pleasure to be here on the Blueprint. Thank you so much for having me, and thank you very much
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for providing this forum, not only for our caucus, but for conservatives from coast to coast to coast.
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It's always a pleasure and always a pleasure to see you. Unfortunately, whenever I am here,
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it seems we are talking about something that the Liberal government has done again, and you're
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absolutely correct. We find ourselves here on the brink of what is yet another scandal after scandal
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after scandal after scandal. I'm starting to wonder, Jamie, if Shane is dead. Yet here we are on the brink
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of another scandal with McKinsey & Co., and it's a very exciting week for us because we have indeed
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called a meeting, a 1064, an emergency meeting that is taking place tomorrow, Wednesday, January 18th,
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where we will hopefully pass a motion in an effort to really study and evaluate the extent of McKinsey's
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involvement in this Liberal government. Jamie, I think this is going to be huge. I think we're going
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to see this reach into a lot of different departments. It's wrong on so many levels that
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we can unpack here, their involvement, and I just think it's really great that you are at the front
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of this recognizing how significant this is for the Liberal government, because as I said, I really
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think we will see that the tentacles of McKinsey really have reached into a number of departments,
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and again, that this is wrong on so many levels. So let's talk about why this happened. So McKinsey,
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one of their former heads at one time was Dominic Parton, a good friend of the Liberals. He then became
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Canada's ambassador to China. He was there in that position for about two years, let go because some
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have said he got too cozy with the Chinese government. Now you have headlines in the National
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Post out yesterday talking about whether or not McKinsey is a shadow government that's
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secretly runs Canada, and they have operations in 60 countries. There are 30,000 employees,
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give or take, all over the world, but they've also had their problems. I'll just go through a few,
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Stephanie, and we can elaborate on that. So McKinsey is currently the subject of a criminal
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probe in France on charges. They allegedly violated French campaign laws. In September,
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they were hit with criminal charges in South Africa for a corruption scandal. They got into trouble
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in Saudi Arabia because they developed a report that was used in the targeting and arrest of
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dissidents. But this one, this next one, there's many, but this one kind of caught my eye too.
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In February, 2021, McKinsey & Co. inked a $600 million settlement with U.S. authorities over charges
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that the firm helped design an aggressive marketing strategy for Oxycontin. Now, of course,
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we all know that's a drug whose over-prescription spawned the current opioid crisis. And it says
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here in this article here in the Globe and Mail that I'm quoting now, they were part of a machine
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that disrupted and in fact destroyed the lives and families in America. This is basically technocrats
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And that's exactly it. And you've really touched on a lot of the levels of wrong that I was talking
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about. You're right. The activities of this company have, their scruples are really questionable
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to say the least on so many levels. And this is something I hope that we will get into the
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Government Operations Committee as well, is testimony from where they have been found in conflicts in
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other countries. You mentioned France, you mentioned the United States, just to name a couple.
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So this is something that is not immune only to Canada, that it is, as you said, reaches across
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the globe. And you gave a lot of good examples of where they have done things which are not only
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questionably ethically, but in fact, potentially, and even found criminal. So, you know, that's
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certainly the first thing. And you laid out the second other major concern as well, which is that
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do we have a government, which was supposedly elected by the people, actually running things?
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Or is this being run by an outside consulting firm with their own interests, with their own private
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interests that are only there as a result of their relationships with the highest levels of government
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in this country? And that's really what I think we hope to show within the study, is that this
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relationship exists at the very top level. And I think we've seen that the prime minister and his
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cabinet are not immune from poor ethics, that they have consistently been found guilty by the ethics
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commissioner. They think that they can say they're sorry and move on with things, but they really have
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no sense of accountability and what the absence of ethical actions means not only for their positions,
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but for Canadians as well. So we want to show that this relationship exists right at the top,
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and it has poisoned every corner of government, Jamie. So we're going to start it at the government
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operations committee. But I think that we have seen implications of departments such as immigration,
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we saw Dominique Barton was specifically involved in that john McCallum, the former immigration minister was
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involved with this Dominique, I'm sure you know, went on to go and run the century organization,
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which is responsible for getting 100 Canada's population to 100 million within a specific time
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frame through immigration. So again, that shows you that outsiders are setting policy for this government,
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we're going to see it go to defense, we see that McKinsey was brought into the Department of Defense in an
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effort to sort of help guide the policies at the most executive levels training at the executive
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levels. I mean, that's, that's their fingers in there as well, Jamie, we're seeing it also in health,
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which you mentioned, and I'm very interested to see where this goes, because our leader has had a
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narrative, which has been challenged by mainstream media, which has been challenged by I would go so far to
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say as the left. And I really think that the findings within the United States really helps to build our
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leaders position regarding the opioid crisis. So we essentially have a shadow government and we've seen
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this as well as we've seen numbers ballooning in the public service. But then also this this incredible
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amount of money that's been spent on consulting firms, you know, now we know who who's running the show,
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and we really hope to show that in government operations. So it's wrong from the ethical
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standpoint of McKinsey working in tandem with the Trudeau government. And it's also wrong in that
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the government isn't doing what it was elected to do, which is essentially determine policy based
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upon their platform for Canadians, they're having a third party enter and set their policy based upon
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their own private interests, which are scrupulous, or which are, are very, are not great.
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So part of this deal, when you have consultants, especially a company like this, a massive corporation
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like this, with its tentacles everywhere, trying to affect government policy, trying to basically take
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their will and impose it upon the people. This is this is what happens big government gets bigger,
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it starts to use those well lobbied and well lawyered up to make policy and get those lucrative
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government contracts. At the same time, then you stifle competition. So the little person trying to
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start their business is facing all kinds of barriers to competition, it makes that harder to get into the
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competitive market. And in terms of the government of those big corporations, well, you just now have to
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picture make your pitch to government, right? It's it's so much easier when you have all these super smart
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people with no real experience in the field, such as this consulting firm based on what I've been
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reading about. They're trying to basically pin the it's like, it's like the like the people of Canada
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are just pieces on the chessboard, right? These technocrats can move people around and tell them
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what to do. And, you know, keep working, pay your taxes, don't ask questions, just shut up and keep going.
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And we'll just take it from here. But as we can see, they're breaking laws, they're breaking
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ethical boundaries, and costing taxpayers at the same time.
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Yeah, and that's a really good point you make about the waste. Because, you know, we're seeing
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this with the Phoenix pay system. We've seen this in a number of areas where the government, and you
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know, you talk about the little companies, but I'd also like to take a moment, Jamie, and talk about
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the public service, even they feel like they have no agency, even they feel like they have these
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consulting firms coming in and telling them what to do, they feel completely demoralized, they feel
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without direction, because direction is based on an external third party. But yes, like, you're
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absolutely correct that Canadians are pieces on a chessboard. And as I said, this is what we really
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hope to accomplish in this study is just show how high up this rot is, and how throughout the entire
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government, this rot is, and it all starts tomorrow. And I think it will be very interesting
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to see how it unfolds, to see what we find, and to see the extent that they, that they are implicated.
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Because I am sure that it is at the highest levels, and the results have significant impacts on
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Canadians. Significant, there is just, there's no doubt about it. Because if we look at something like, like,
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immigration, these targets that the Liberal government has, has set for themselves, well,
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that's it, have they set them for themselves? Or do they have this external company that came in and
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decided that, that these were the targets based upon even perhaps other external factors? We don't know.
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But the result is, public servants have to, without agency, make an attempt to implement
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that without really having any, any power themselves. They feel, we see that even this
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week with the return to work mandate, they feel misguided, they feel as though the directive wasn't
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clear. This is a common theme in the Treasury Board amongst public service employees, that they,
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they just feel as though they were not sure what their objectives are, the directives are, their,
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their organizational structures don't reflect the work that has to be done, their workspaces don't
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reflect the work that has to be done. And, and that a lot of that could possibly be, because again,
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it's not really the government that's in charge, not, not the, the bureaucrats, and not even the ministers.
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It's a few people at the highest level of this country in the prime minister's office with,
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with evil partnerships that are making deals and implementing those deals throughout all of
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government with horrific consequences for Canadians, for public servants, but as you've indicated with
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those anecdotes at the beginning of the hour throughout, throughout the world. And why hasn't our,
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our government or why hasn't our government learned from these examples from throughout the world or
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held the, the prime minister to account in his relationships? But as I said, we're going to find
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out a lot here. And I think it's, we are not even at the tip of the iceberg and it all starts tomorrow,
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Jamie. Let's unpack a bit about what you said. I think that holds true. The liberal party right now has,
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what do they have 130 some odd MPs, probably a little bit more, maybe 140. You have thousands,
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tens of thousands of bureaucrats within the public service. And that has been growing every single
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year since 2015, when the Trudeau liberals took power. And now you have the outside use of consulting
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firms, but you're right. It's not exactly the MPs themselves. It's not exactly the, the, the words of the
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citizens, the Canadians that are dealing with a whole bunch of issues. It is a small group of people
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within the prime minister's office, making all these decisions. It, that is really scary when you think
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about it. Just a very tiny group of centralized power hungry people. I can't, they're not bureaucrats. They're just
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political staffers making these decisions for the lives of countless of Canadians who are dealing with
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high inflation, a housing crisis, healthcare is a mess. The list goes on and on and on. And, and, and
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these consultants just come in and have the grand plan. Well, it's the central planning, right? We,
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once the planners plan, they just ask for more time when the plans fail, right? They, they keep more
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time, more patients, more money. We'll figure it out. You just sit back and I don't care if you're
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freezing, you're starving, doesn't matter. We'll figure it out in time, but it never gets figured out.
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It never gets figured out. And, and that's another thing that we have heard is that they're brought
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in, but they never come to any resolution. And again, the Phoenix pay system is a perfect example
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of that. And we've also had the prime minister come out and say, oh, you know, his, his ministers
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are on it. So I really hope his ministers are willing to come and testify as committee, because that's
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certainly one of the places that we'll be starting both, uh, minister Fortier and minister,
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um, Dracic. Now, mind you, these problems date back to way before then, but I mean,
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we have to start somewhere. So I don't even know, uh, what they're going to come with,
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but we have to start somewhere. And the other thing I'm worried about, Jamie is seeing another,
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um, I'm trying to even think of like a acceptable word. I can say on the air task force or study,
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right? I mean, look at what happened when, uh, Ogo did the study of the, um, whistleblower
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legislation seven years ago, the Trudeau government never implemented it. So a private members bill
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comes forward, uh, suggesting that this, some of the recommendations from the Ogo study on whistleblower
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legislation is implemented. Oh, lo and behold, the liberals and Mona Fortier decide that they're
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putting together a task force to evaluate a whistleblower legislation and what has to be done.
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And this is what the liberals do is they put together a task force where we see nothing come
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out of it. We, we see a study put together where even if the study has conclusions, none of the
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conclusions are, uh, are, are implemented. So that's the other thing I'm really worried about,
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Jamie, is that, um, we're going to see, uh, Minister Fortier administer jazz it come, come out of nowhere.
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The first week that we go back to the house and say, Oh, good news. There's no need for government
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operations to investigate this. We've put together a task force. Um, and that's not going to fly.
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That's not going to fly with me. And that's not going to fly with our NDP and block counterparts.
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And I'll, I'll, I think that's a really important thing to add here, Jamie, is that this isn't just
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us, the conservative party of Canada and the conservative caucus that sees the rot and the
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spread and the, um, the, the, the, the horrific ethics of this company. It's the other opposition,
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uh, parties as well. So we are unified in wanting to see this addressed because all of us recognize
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that one, it is rotten and two, it is throughout, uh, government, but I'm telling you, Jamie,
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um, even between the time that we decided to call the 1064 and the time that the letter was delivered
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to the clerk, I was sitting there holding my breath, waiting for the announcement of a study,
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uh, or, or a task force. So, you know, my point is they will do everything they can in an effort to,
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uh, cover this up another cover up. How many cover ups have we seen? They will do everything
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they can in an effort to, uh, deflect this. And we've seen this, um, continuously through,
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throughout the, the government's time in government, but even in the fall with, uh, IRGC, once again,
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uh, with the arrive can up, just cover up, cover up marrying again, she's still there, uh, as a minister,
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as I said, I can't help but what her shame is dead. Um, but, uh, my point is that we are not
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going to let them get away with this because there have to be answers for Canadians as to
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not only where their tax dollars are going in this time of high inflation, in this time of cost of
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living increases, where food is at a 40%, uh, increase. Um, but also because who is pulling
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the strings, who's pulling the strings, Jamie, we want to get to the bottom of it.
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Well, let's get to the bottom of it. Let's just turn the channel a bit. Let's pretend that
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it was the conservative government that did this. And then we will have the media lighting
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their hair on fire. We will having the, the liberals having panic attacks on the floor.
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Like let's, let's just have that same amount of enthusiasm from, from these outside players
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just to get to the bottom of it, because I think this goes pretty deep in the fact that
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we have potentially outside groups and we we've suspected that all along and let's not get,
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let's not forget that there has been many examples of outside organizations,
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steering governments, not just in Canada, but across the world. And in here we're having
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No, you're absolutely correct. And I will say, I'm sure you're aware there's been a lot,
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and I mean, a lot of media interest and I'll add not only in McKinsey and Co's involvement in
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government. Um, but consultancy across government, we saw that Paul Wells, um, article. I mean, but
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my goodness, when you have journalists who are established within the Canadian media, like Fife
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coming out and saying like, um, this group is evil. These two, the prime minister and this company are,
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aren't bent together. Like it's time for the media to listen. Um, it is time like Canadians
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cannot deny this and the liberals, they will try, but they will have a very hard time spinning this.
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So you raise another good point. Uh, as I said, up to this point, we're seeing, I'm seeing one,
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two stories generated a day from all of the major outlets, both French and English, uh, media,
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but we'll see where they go with this. Cause I think that they are, um, very interested to sort of see
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how this unfolds. And I think how this unfolds will, uh, have a lot to do with, um, the block
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and the NDP and, and us sort of being on the same page, working towards what should be the common
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objective of transparency for Canadians, uh, with their government. Um, but then also how well the
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liberals are, are able to deflect cause you know, the prime minister is called the Teflon prime minister
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for a good reason. I mean, we think of how many scandals is he's at three violations from the
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ethics commissioner. Now he's still there. How many ministers yet are our colleague Brad
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Vist just did a fantastic, um, video on, on all the violations. And then it's, they're still there.
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They don't, they don't go anywhere coming, coming out of the emergencies act review. Mendicino is still
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there. Bill Blair is still there. Like I said, I really, I wonder if Shane is dead because, um,
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what, what this government has done, if we would have attempted to pull in the years that we were in
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power there, there would not be the same tolerance or measure, not from, uh, I think the media, uh, not from
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that I, I, I'm not even sure what the Canadian public, uh, isn't aware of, or, um, doesn't have
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time to the information that they don't have to see that, uh, that, that this is wrong, but, uh, it
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doesn't mean that we're going to give up and it doesn't mean that we're not going to keep trying to
00:22:43.780
get, um, to the bottom of this because, you know, as I said at the beginning of the hour, sadly, this is
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just another example of, of yet another scandal and another place where the government had the
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option to act ethically, where the prime minister had the option, um, to not go with his good buddies,
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but he just, he can't stop himself, Jamie. He can't stop himself. And he went and built these relation,
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not only built these relationships, acted on these relationships and worse than that,
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forced his top people to permeate them throughout government.
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All right. We're sadly out of time. So many more questions. You have your emergency meeting tomorrow.
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We'll see what comes out of that. Hopefully we, we get some momentum here in terms of getting to the
00:23:32.980
bottom of things and perhaps follow up on next week's show as to what exactly happened and kind of
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update people, uh, kind of, uh, you know, the play by play of it all. Um, Stephanie, as you know,
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the guests got the last word, feel free to, free to take it from here. Thank you, Jamie. I just,
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I want to really, uh, I want Canadians to know just, um, McKinsey and co do your homework on them. Look into
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some of the anecdotes that, uh, Jamie mentioned at the top of the hour and keep an eye on this
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because as I said, the rock is at the top and it has spread throughout Denmark.
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All right. Stephanie Cusey, member of parliament, Calgary,
00:24:16.260
vendor portal to the treasury board. Thank you very much. Good luck in your meeting
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to you and your team, pushing this forward and getting to the bottom of how deep these
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tentacles of McKinsey and co seem to run in our Canadian governments. And we appreciate your time
00:24:29.860
as well. Thank you very much for, for joining us today. As mentioned off the top, we have new content
00:24:34.340
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