Was Canada’s $20M armoured vehicle deal caught up in a UN sanctions breach? – National
A federal memo obtained by Global News reveals new details about delayed deliveries of dozens of armored vehicles purchased to protect Canadian embassy employees abroad.
The federal government told Global News that the delay was due to supply chain disruptions caused by the COVID-19 pandemic, but the holdup involved a vehicle in suspected violations of UN sanctions, according to documents. It is suggested that this is the result.
In 2018, the Canadian government awarded a $19.9 million contract to U.S.-based munitions supplier Jankel Tactical Systems to armor 76 Toyota Land Cruisers.
Once built, the vehicles were to be stored awaiting shipment to Canadian diplomatic missions in hotspots around the world, including Kiev, Ukraine, Abuja, Nigeria, and Port-au-Prince, Haiti.
Former Canadian ambassador to Haiti, Jill Rivard, says diplomats in dangerous locations cannot do their jobs without armored vehicles.
“Armored vehicles are essential in many countries to save lives because you never know what might happen,” Livard told Global News.
But Canada has been without access to dozens of new vehicles for nearly a year.
Canada signed an armored vehicle contract with Jankel, who subcontracted the storage of the Toyota Land Cruiser to a Jordanian company called Jordan Light Vehicle Manufacturing (JLVM).
Jankel informed the government on April 27, 2022, that he would “sever ties” with the subcontractor “because JLVM may have violated UN sanctions,” according to a government memo obtained by Global News.
A UN commission has said vehicles manufactured by JLVM’s parent company, the Jordanian Design and Development Authority (JODDB) (formerly known as KADDB), were used by Haftar’s forces in Libya, allegedly in violation of UN regulations. It claims to have documented multiple cases. arms embargo.
The Panel was unable to determine how the vehicles ended up in Libya and into the hands of embargoed groups.
A UN panel of experts said the provision of armored vehicles manufactured by Jordan’s King Abdullah II Design and Development Authority to the Libyan military violated a UN arms embargo.
YouTube: LNA Media Office
Global News has learned that a Jordanian subcontractor stored dozens of Canadian vehicles in a storage facility in Amman and refused to release them after relations between Jankel and JLVM soured.
A total of 54 vehicles were initially seized, according to a government memo.
“It has become imperative that Canada Global Affairs relocate these vehicles immediately,” the document reads.
Vehicles were never cheap. A government memo said Canada paid more than $13 million for dozens of seized vehicles, or more than $240,000 each.
It took Canada nearly a year to regain access to dozens of armored vehicles seized by JLVM, a subcontractor involved in the deal.
YouTube: JODDB Jordan
The federal government had already prepaid most of the fees under the terms of the contract, so it seemed that it had little power to get the vehicles.
Alan Williams, former assistant secretary of supplies for the Defense Department, said the contract should have withheld more payments until the vehicles were delivered to their final destinations.
Otherwise, the company has no incentive to deliver on time.
“Nobody should pay 90% upfront,” Williams said. “That should never happen.”
JLVM’s parent company, Jordan Design and Development Authority, declined to answer Global News’ questions about whether it violated UN sanctions and also declined to comment on JLVM’s alleged seizure of armored vehicles.
“Not enough information to share. [sic] There is currently no affiliation between JLVM and Jankel Group Limited,” JODDB Contract Specialist Hisham Alrawashdeh said in a statement.
Jankel Chairman Andrew Jankel told Global News that the company is in “good working relationship with JLVM” but declined to comment further, citing “various reasons for customer confidentiality”. rice field.
“We are very proud of our relationships with our customers, partners and suppliers,” he added.
Canada Global Affairs declined to answer questions about alleged violations of UN sanctions, saying the delivery had been adjusted “due to supply chain delays and microchip shortages.”
“The vendor met the terms of the contract when it signed the deal,” said Global Affairs spokesman James Emmanuel Wanke. “We cannot discuss transactions between Jankel and other parties.”
Global News learned that an armored vehicle held by the JLVM was finally released to Global Affairs in May 2023, roughly a year after it was first seized.
Ottawa now expects the vehicles to be delivered to diplomatic missions over the next two years.
Still, Williams warned that government procurement in Canada was in turmoil, suggesting the deal was another example of what he called a “lack of accountability.”
“If you’re screwing up a $20 million contract and applying it fraudulently, what happens to the other contracts?” he said.
© 2023 Global News, a division of Corus Entertainment Inc.
