Auditors have revealed that almost 14,000 ventilators purchased under a $700 million Covid-19 program were immediately warehoused as surplus, with some promptly sold for scrap. Blacklock's Reporter says these findings were disclosed following an inquiry by Conservative MP Cheryl Gallant (Renfrew-Nipissing, Ont.).“During our count of the ventilators in inventory, we noted all ventilators identified as surplus, 13,614 in total, were segregated from the remaining inventory for a corresponding write-down to be made,” wrote Auditor General Karen Hogan.The audit reviewed the rush orders for medical supplies at the beginning of the pandemic. Hogan confirmed that the investigation did not explore what ultimately happened to the surplus ventilators. “The decision to divest ventilators was not part of our financial audit,” Hogan clarified.Gallant sought details on the waste in the ventilator program after a constituent reported seeing medical devices sold at auction as scrap metal. “I bought 50,” said Luke Halstead, a paramedic from Pembroke, Ont., in an earlier interview. “Almost half of them were in their original shipping crates.”The StarFish Medical ventilators were purchased under a sole-sourced contract from a Toronto supplier at $22,600 each. Auction records showed unused devices still in their original factory crating sold for as little as $6.Gallant criticized the mismanagement of the ventilator program, highlighting the significant financial loss to taxpayers. “That these advanced medical devices still in the original manufacturer packaging can be listed for sale as scrap metal presents a serious risk of corruption or the destruction of value for taxpayers,” Gallant wrote to auditors.Records indicate a total of 37,500 ventilators were ordered from four Canadian manufacturers, with 27,499 delivered. Approximately half of these, or 13,614, were declared surplus, including the StarFish ventilators sold as scrap.A 2022 memo from the Department of Public Works, published by Blacklock’s on July 2, confirmed that managers recognized within months that the ventilator program was excessive. “It was becoming apparent that the quantities contracted by the Department of Public Works, coupled with the quantities procured directly by provinces and territories, indicated Canada would have an oversupply of ventilators,” stated the memo.“In response to this, Canada proceeded to reduce the quantities required by terminating contracts for convenience with domestic manufacturers,” the memo continued. Access To Information records show the department continued to accept delivery of unneeded ventilators into 2021 and 2022, typically paying suppliers $20 million upfront with additional large cash payments upon delivery.
Auditors have revealed that almost 14,000 ventilators purchased under a $700 million Covid-19 program were immediately warehoused as surplus, with some promptly sold for scrap. Blacklock's Reporter says these findings were disclosed following an inquiry by Conservative MP Cheryl Gallant (Renfrew-Nipissing, Ont.).“During our count of the ventilators in inventory, we noted all ventilators identified as surplus, 13,614 in total, were segregated from the remaining inventory for a corresponding write-down to be made,” wrote Auditor General Karen Hogan.The audit reviewed the rush orders for medical supplies at the beginning of the pandemic. Hogan confirmed that the investigation did not explore what ultimately happened to the surplus ventilators. “The decision to divest ventilators was not part of our financial audit,” Hogan clarified.Gallant sought details on the waste in the ventilator program after a constituent reported seeing medical devices sold at auction as scrap metal. “I bought 50,” said Luke Halstead, a paramedic from Pembroke, Ont., in an earlier interview. “Almost half of them were in their original shipping crates.”The StarFish Medical ventilators were purchased under a sole-sourced contract from a Toronto supplier at $22,600 each. Auction records showed unused devices still in their original factory crating sold for as little as $6.Gallant criticized the mismanagement of the ventilator program, highlighting the significant financial loss to taxpayers. “That these advanced medical devices still in the original manufacturer packaging can be listed for sale as scrap metal presents a serious risk of corruption or the destruction of value for taxpayers,” Gallant wrote to auditors.Records indicate a total of 37,500 ventilators were ordered from four Canadian manufacturers, with 27,499 delivered. Approximately half of these, or 13,614, were declared surplus, including the StarFish ventilators sold as scrap.A 2022 memo from the Department of Public Works, published by Blacklock’s on July 2, confirmed that managers recognized within months that the ventilator program was excessive. “It was becoming apparent that the quantities contracted by the Department of Public Works, coupled with the quantities procured directly by provinces and territories, indicated Canada would have an oversupply of ventilators,” stated the memo.“In response to this, Canada proceeded to reduce the quantities required by terminating contracts for convenience with domestic manufacturers,” the memo continued. Access To Information records show the department continued to accept delivery of unneeded ventilators into 2021 and 2022, typically paying suppliers $20 million upfront with additional large cash payments upon delivery.
