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This is not the time for backroom deals

Author: David Maclean 2002/10/28
Historians will remember 2002 for a series of accounting scandals that rocked the stock market and undermined the global economy. With a touch of wry humour, they will note that even Martha Stewart -- matriarch of perfection and pop culture icon -- faced possible jail time for insider trading. On the political front, a series federal Cabinet Ministers have walked the plank because of embarrassing ethics scandals.

Now, like never before, is the time for openness and accountability. Never have backroom deals and nepotism been so unpopular, and disastrously rampant.

Ethics scandals and questionable accounting have devastated the retirement funds of millions, and no matter where one turns in the mass media, we're constantly reminded. At the top of his broadcasts, CNN's Lou Dobbs counts the days since the Enron collapse, and reports how many corporate executives have been charged in the aftermath (the count currently stands at three).

Apparently the Saskatchewan government hasn't been watching CNN, or any news channel for that matter. For this government, it's business as usual.

Last week, during a committee meeting at the Legislature, the government was forced to reveal undisclosed plans to out-source information technology services to EDS, a Texas-based technology firm. The deal reportedly involves outsourcing all of the province's network administration services, and may impact hundreds of public service jobs. A contract of this scope carries a hefty price tag.

Let's leave the merits of the plan aside for a moment. The government of Saskatchewan is proceeding with a major privatization initiative with no requests for proposal, no public discussion, and no public tendering process.

The government must open this project up to public bidding. And not just this contract - ALL government contracts should be subject to a fair and impartial bidding process. Without open tendering we can't be sure taxpayers are getting the best possible value out of the deal. How do we know a Canadian (or even Saskatchewan) company can't cheaply and effectively deliver the same services

Having now been tainted in the media as a backroom deal, the EDS "strategic partnership" will always be viewed with skepticism. And that's too bad. Too bad because this initiative could be a great first step toward increased private sector involvement in delivering government services.

The case for increased private sector involvement is strong. There is overwhelming evidence that private businesses tend to be more efficient, responsive and better capitalized compared to their public sector counterparts. Moreover, private contracts are more clearly subject to performance review and results measurement.

The government is on to something with this strategic partnership with EDS. It's too bad they are doing it under a shroud of secrecy.

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