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Sapped of both hard and soft power, Canada needs action to keep up in a dangerous world

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From the MacDonald Laurier Institute

By Charles Burton

Ottawa’s vexing indifference toward national defence and security will not serve or protect Canada.

Speaking to an international crowd of leaders, ministers and other representatives who had gathered earlier this month in Beijing for a forum that marked 10 years of China’s Belt and Road Initiative global infrastructure program, Chinese leader Xi Jinping declared that “changes of the world, of our times, and of historical significance are unfolding like never before.”

Quite right. Will the Russian invasion of Ukraine be resolved without war with NATO? Will armed conflict in the Middle East, fomented by Iran, spiral into a regional war? Would China open a third front by invading Taiwan? If the atrocious provocations to war by Iran, Russia and China develop simultaneously on three fronts – setting off a world war in Asia, the Middle East and Indo-Pacific – where will Canada stand?

Canada should be a respected and resonant voice in the international arena. We are both an Atlantic and a Pacific nation, and our heralded history of peacekeeping involvement in the Middle East dates back to the Suez Crisis of the 1950s and Lester Pearson’s Nobel Prize. In the Second World War, prime minister William Lyon Mackenzie King sat down for four power meetings with Franklin Delano Roosevelt, Winston Churchill and Joseph Stalin.

Canada once mattered. But those days are long gone.

Years of underfunding defence and freeloading on the U.S. for our national security are leading to Canada being phased out. The significance of the Group of Seven and the Five Eyes intelligence alliance has become equalled or overtaken by that of organizations from which Canada is excluded, such as the Quint and AUKUS, which is aimed at Indo-Pacific security even though Britain is not a Pacific nation. Despite reportedly telling Western leaders and officials at the G20 summit that it had credible intelligence that India’s government was involved in the assassination of a Canadian citizen, no leader was willing to publicly criticize Narendra Modi. Our soft power authority has faded.

Given our pathetically depleted hard power capabilities, Canada needs a reality check on what we can actually do with the limited resources at our disposal.

First of all, it is time to stop mouthing hollow bromides about “our” north, and actually reorient our defence to establish a meaningful presence in the Arctic. China now defines itself as a “near-Arctic nation,” with increased investment in the region and plans around a potential shipping route – a “polar silk road” – that could emerge between melting ice caps; Russia, meanwhile, has argued that much of Canada’s Arctic waters actually belongs to them. If a major conflict were to arise with Russia and China allied against the U.S. and Canada, our unprotected Arctic could be quickly lost to Beijing and Moscow’s ambitions to expand their territory beyond Europe and East Asia.

Secondly, Canada must protect its northern stores of critical minerals. We talk a good game on this, but so far that has mostly been political bafflegab. Beyond making an obvious statement about our sovereignty, developing our northern resources is a productive way to create economic opportunities for northern Indigenous communities, and shows our allies that we are serious about stopping China from monopolizing valuable minerals in Canadian soil that are vital to the world’s high-tech future.

Finally, Ottawa needs to step up and meet the challenge to Canada’s security from Iran, Russia and China. There was tough talk in Parliament earlier this year about foreign actors manipulating our democratic institutions, but there has yet to be legislation tabled to create so much as a foreign agent registry. The federal government’s response to the 34 well-considered recommendations of a House of Commons special committee on Canada-China relations released in May was dismissive.

Even the Commons subcommittee on international human rights’ report on Tibetan residential schools in China was effectively ignored. One would have thought this issue would be something Canada could take a lead on, considering our history in this area. But in responding to the report, Foreign Affairs Minister Mélanie Joly didn’t even acknowledge the recommendation that Canada sanction Chinese Communist officials complicit in their residential schools policy.

What is the point of investing considerable resources into parliamentary committees if the government sees them only as an irritant to be checked, rather than a positive contributor to national policy development?

We are facing an axis of cold-blooded dictators determined to destroy Western-supported stability and order. With global tensions more combustible than at any time in a generation or more, Ottawa’s vexing indifference toward national defence and security will not serve or protect Canada.

We need to refocus what remains of our military and security resources to what really matters, and fast.

Charles Burton is a senior fellow at the Macdonald-Laurier Institute, non-resident senior fellow of the European Values Center for Security Policy in Prague, and former diplomat at Canada’s embassy in Beijing.

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You wouldn’t believe how complicated distributing public money can get

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The Audit

 David Clinton

Veteran Affairs: the Big Picture

While researching posts for The Audit, I’ll often confront massive datasets representing the operations of agencies with which I’m not in the least familiar. Getting to the point where all the raw numbers turn into a useful picture can take considerable effort, but it’s a satisfying process.

But my first attempts to understand Veteran Affairs Canada (VAC) felt a bit different. I wasn’t just looking at funding and costs, but at the frustrations and suffering of people who, to a greater or lesser degree, were harmed through their service to the country. Here, I hope, is part of their story.

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Veterans Affairs Funding

There are currently more than 460,000 living veterans of the Canadian military. The estimated 2024-25 spending allocation for Veteran Affairs Canada – whose mandate is to serve that population – is around $4.8 billion. The department employs less than four thousand people, which is actually around eight percent fewer than in 2010. Having said that, employment at the distinct Veterans Review and Appeal Board has grown from zero to 161 since 2017.

Besides VAC, the Office of Infrastructure of Canada will spend around $16.5 million on their Veteran Homelessness Program, and Department of National Defence has another $1.6 million budgeted for Community Support for Sexual Misconduct Survivors Program – something for which veterans will also be eligible.

In addition, nearly $2.5 million in grants from various government agencies (including Canada Mortgage and Housing Corporation) was given in 2023 to the Homes for Heroes Foundation, which provides housing and support for at-risk veterans.

Non-government agencies also work to support veterans. In 2023, for instance, the War Amps reported spending $2.7 million on “Service Bureau and Advocacy” and around $700,000 on “Veterans Issues – Special”. The Royal Canadian Legion Dominion Command spent around $1.15 million on veterans services in 2022.

The True Patriot Love Foundation is also a big player in this area, channeling nearly $2.7 million in 2024 to other charities working for veterans. At the same time, more than 30 percent of their own budget came from government sources.

One example of such flow-through funding was the $360,000 given by True Patriot Love to Veterans Transition Network in 2024. In 2023, Veterans Transition Network themselves received another $2.2 million from government along with a total of $1.7 million from other charities.

These kinds of ultra-complex relationships are common in Canada’s charitable sector. The complexity may provide benefits that outsiders can’t easily see. At the same time, knowing whether moving funds through multiple organizations leads to unnecessary inefficiencies and waste is something that would probably require a serious forensic audit.

Veterans Affairs Spending

The largest line items in this year’s VAC spending include $1.6 billion for pain and suffering compensation, $1.34 billion for the Income Replacement Benefit, and $990 million for pensions for disability and death.

In 2023, VAC awarded $41.6 million in external contracts. The largest of those was worth $13.8 million and went to 674725 ONTARIO LTD for “Other Business services not Elsewhere Specified”. 674725 Ontario Ltd. appears to be closely associated with a company called Agilec which, in turn, is a part of Excellence CanadaHere’s how Excellence Canada describes itself:

“Founded in 1992 by Industry Canada as the National Quality Institute (NQI), then rebranded as Excellence Canada in 2011, we are an independent, not-for-profit corporation that is dedicated to advancing organizational performance across Canada.”

In that context, it’s interesting that in 2022, VAC awarded a $159 million contract to a joint venture between WCG International Consultants Ltd. and March of Dimes Canada for “Other Health Services not Specified Elsewhere”.

What makes that interesting? Well, WCG also shows up on an Innovation, Science and Economic Development Canada (ISED) page related to compliance with the Investment Canada Act (ICA). The ICA exists to provide transparency relating to foreign investments in the interest of maintaining a fair and competitive marketplace

This particular page identifies a “U.S.” company called Ancora BidCo Pty Ltd as the new owners of a number of businesses under contract with the federal government. Those businesses include 674725 Ontario Ltd. and WCG International Consultants Ltd.

In fact, Ancora isn’t really a U.S. company at all. They’re actually Australian (as the Pty designation suggests). But their parent company – the private equity firm Madison Dearborn Partners, LLC – indeed operates in Chicago.

There’s no direct evidence to suggest there’s anything dark and nefarious happening here. But it is strange that so many discrete contracts turn out to be awarded to what now amounts to a single foreign for-profit company.

External Contracting Patterns

Has VAC been increasing their reliance on external contracts in recent years? Well, as you can see from this graphic, it’s complicated:

I don’t know what policy changes drove those two huge spikes in 2014 ($933 million) and 2021 ($2.25 billion). But I can tell you which specific vendors are responsible for most of the increase.

In 2014, three contracts worth a total of $803 million went to Medavie Inc for “Other Business services not Elsewhere Specified”. That was 86 percent of the sum of all VAC contracts from that year.

An eye-popping 98 percent of 2021’s external spending went to just six contracts worth $2.2 billion. Medavie Inc received one of those contracts – worth $228 million. But the other five (worth a total of $1.99 billion) were all joint ventures involving WCG International Consultants Ltd.

Lifemark Health Corp. (currently owned by Loblaw) partnered with WCG for three of those contracts, and March of Dimes Canada had the other two dance slots.

What Is Medavie?

Medavie Inc. is the owner of:

  • Medavie Blue Cross
  • Medavie EMS Inc.
  • Medavie health Services New Brunswick Inc.
  • Emergency Medical Care Inc.

Between them, those companies provide health insurance, healthcare training, and emergency management services. They also provide public health program administration – which would probably account for the majority of those contract amounts.

What’s not clear to me is why there’s no record of Medavie receiving any federal contracts of any sort since 2021 – despite the fact that the VAC website tells us that they’re still actively engaged in service provision through Partners in Canadian Veterans Rehabilitation Services (PCVRS).

What Is WCG International Consultants Ltd?

As we’ve seen, WCG is now owned by an American private equity firm and is most certainly no longer not-for-profit. Their website tells us that they’re part of the APM Group, which is an Australian company providing “services in early childhood, youth, employment, insurance, justice, veterans, health, disability, and aged care”.

You’re correct to assume the APM Group is more or less synonymous with Ancora BidCo Pty Ltd. More specifically: all of APM’s publicly-traded shares were bought out in the past couple of months on behalf of Madison Dearborn Partners.

Just one more detail: according to WCG’s website, they’re:

“Partners in Canadian Veterans Rehabilitation Services (PCVRS) coordinates and administers the Rehabilitation Services and Vocational Assistance Program on behalf of Veterans Affairs Canada (VAC).”

Curious about PCVRS? Since late 2022, they’ve been tasked with administering all medical, psycho-social and vocational assistance services on behalf of VAC. However, reports suggest that not everyone has been happy with either accessibility or responsiveness under the new system.

None of this is necessarily inappropriate. And if you’re willing to work at it, you’ll be able to use public information sources to uncover a wealth of related relationships and details. But the vast amounts of money involved, along with the operational complexity make abuse possible. Which means external oversight is a good thing.

Besides all that logistical stuff, what really matters is whether veterans themselves are receiving the support and services they deserve. And that’s a question only they can answer.

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Military may be ground zero for the war on woke

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From The Center Square

By 

“We’ve seen under the last three and a half years of the Biden-Harris administration, it’s been hard to recruit and keep good service members, in part because of the bad woke policies, the loss of focus by this administration on what the mission is”

President-elect Donald Trump’s pick to lead the Department of Defense, though not yet confirmed, has pledged to root out “woke” ideology in the military.

Other Republicans have lamented the same issue for years but done little about it, but if Peter Hegseth can be confirmed, the U.S. military may become ground zero in the Right’s war on woke.

Military veteran and Fox News Host Hegseth has repeatedly attacked the military leadership’s embrace of “woke” culture, which usually refers to the ideology around transgenderism, gender pronouns, and racial identity politics.

Despite allegations and attempts to end his bid, Hegseth has stood firm, though his fate in the Senate is unclear. A public statement from Trump last week put to rest any thoughts that Trump was considering withdrawing the pick.

“Pete is a WINNER, and there is nothing that can be done to change that!!!” Trump said in a statement.

The American Accountability Foundation released a list of 20 officers who Hegseth should fire. Notably, during his viral interview with Joe Rogan, Trump told a story about how military leaders in Washington, D.C. told Trump that destroying ISIS quickly wasn’t possible, but when Trump visited the military leaders on the ground, he heard a different story. Those commanders, Trump said, told him it was doable but Washington, D.C. had tied their hands.

“The woke takeover of the military is a major threat to our national security,” AAF President Thomas Jones wrote in a letter to Hegseth earlier this week.

“As global tensions rise, with Iran on the march, Russia at war, and China in the midst of a massive military buildup, we cannot afford to have a military distracted and demoralized by leftist ideology,” he added in the letter, first obtained by The New York Post. “Those who were responsible for these policies being instituted in the first place must be dismissed.”

That anecdote highlights growing sentiment on the Right that the effectiveness and mission of the military has been hijacked by a handful of leaders in the Pentagon.

Lawmakers have raised that concern for years, pointing to a slew of recent federal spending backing controversial Diversity, Equity and Inclusion policies.

Last year, Trump’s pick to lead the U.S. State Department, Sen. Marco Rubio, R-Fla., told The Center Square that woke policies were “hollowing out” our military.

A Department of Defense comptroller report from the same year included $86.5 million for “dedicated diversity and inclusion activities” as well as language showing the importance of DEI to the military.

Syrian children are back in schools, in sign of some normalcy

“The Department will lead with our values – building diversity, equity, and inclusion into everything we do,” the report said.

The actual figure spent on backing the same kind of policies is likely much larger and impossible to know, as the language and ideology has permeated much of the employee training, H.R. policies, and more.

Other anecdotes highlight the prevalence of the newfound way of thinking for Armed Forces. For instance, as The Center Square previously reported, official training materials for West Point cadets included warnings about white privilege.

Rubio released a report detailing these same issues, which includes another example where a slide presentation for the Air Force Academy was titled, “Diversity & Inclusion: What it is, why we care, & what we can do.”

This same taxpayer-funded training warns cadets to avoid saying words like “mom” and “dad” because the language is gendered.

House Majority Leader Steve Scalise, R-La., spoke about the NDAA and blamed woke policies for the armed forces’ difficulties meeting recruiting goals. Even after lowering recruitment targets, the U.S. military has fallen short of its recruitment goals in recent years.

“We’ve seen under the last three and a half years of the Biden-Harris administration, it’s been hard to recruit and keep good service members, in part because of the bad woke policies, the loss of focus by this administration on what the mission is,” Scalise said at a news conference Tuesday.

With Trump and Hegseth in the executive branch and leadership like Scalise behind it, cleaning house of the Pentagon might be possible, albeit difficult.

“We start addressing that by routing out more of the woke policies over at the DOD,” Scalise continued. “Of course, that ultimately is going to get fixed when President Trump takes office next month. He talked about those things during the campaign, what he would do to restrengthen and reinvigorate our military.”

If confirmed by the U.S. Senate, Hegseth would lead the largest and most complex federal agency with an annual budget of $840 billion and 3.4 million military and civilian employees.

Hegseth, 44, was an infantry officer in the Army National Guard from 2002 to 2021. He graduated from Princeton University in 2003. He was later commissioned as an infantry officer in the Army National Guard. He served in Afghanistan, Iraq, and Guantanamo Bay. He left with the rank of major, according to the Army National Guard. Hegseth earned two Bronze Stars, two Army Commendation Medals and the National Defense Service Medal with Bronze Service Star, among others.

But Hegseth faces scrutiny over a 2017 sexual encounter in which a woman told police the former Fox News anchor blocked the door of a hotel room in California and sexually assaulted her. Hegseth has denied the allegation and said that the encounter was consensual. The woman reported the allegations to local police. Hegseth was never charged with a crime. He reached an undisclosed settlement with the woman in 2023.

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