Liberals reviewing deal with Chinese state-owned firm to provide security equipment to Canadian embassies
OTTAWA — Global Affairs Minister François-Philippe Champagne says his office is “looking into” a deal with a Chinese-state owned firm to be a provider for Canadian embassies buying new X-ray security equipment.
Champagne says he has also directed Global Affairs officials to review the department’s purchasing practices for security equipment.
The National Post reported on Thursday that Beijing-based Nuctech — a company owned by the Chinese government and founded by the son of former General Secretary of the Chinese Communist Party, Hu Jintao — was awarded the tender as the lowest bidder to provide conveyor-style X-ray machines to Canadian embassies. A California-based company won a related tender to provide walk-through metal detectors.
In a statement on Friday, Champagne’s office says the tender award is for a standing offer, and no equipment has yet been purchased. According to the tender notice, the tender was for a National Master Standing Offer, which sets pre-arranged prices and effectively makes the company the preferred vendor for the equipment.
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“The security and safety of people in our embassies, consulates and high commissions around the globe is a top priority,” Champagne said in a statement Friday.
“We are currently looking into the offer with Nuctech Company to provide some security screening equipment in our missions abroad. This standing offer is not a contract, and Global Affairs has not purchased any equipment from Nuctech at this time. Any possible issue relative to security or safety will be properly reviewed and all appropriate actions taken to ensure the safety of our missions around the world.”
Champagne’s statement also said he has “today directed (Global Affairs Canada) officials to review our purchasing practices when it comes to security equipment and to continue reviewing the security of our missions around the world.”
According to the original tender notice, the standing offer “will be in place for a period of three years from date of issuance with the option to extend for two additional one-year periods under the same terms and conditions.” The tender includes the delivery, installation, operator training and software for the machines, as well as a “minimum 18 month warranty including software updates.”
The Post reported that the X-ray machines are stand-alone systems that would not be connected to embassy networks. However, even aside from the concern of having Chinese security equipment in Canadian embassies, critics also said the deal raises the problem of Chinese state-owned firms undercutting domestic competitors in Western countries.
Guy Saint-Jacques, a former Canadian ambassador to China, told the Post that the Chinese strategy overseas is to win market share and, once dominant, dictate prices. “There are long-term implications for Western economies,” he said.
— With files from John Ivison
• Email: bplatt@postmedia.com | Twitter: btaplatt
