Was Canada’s $20M armoured vehicle deal caught up in a UN sanctions breach? – National | Globalnews.ca

Federal government memos obtained by Global News reveal new details about the delayed delivery of dozens of armoured vehicles purchased to protect Canada’s embassy staff abroad.

The federal government told Global News the delays were due to supply chain disruptions brought on by the COVID-19 pandemic, but documents suggest the holdup was the result of the vehicles being caught up in an alleged potential breach of United Nations sanctions.

In 2018, the Canadian government awarded a $19.9-million contract to U.S.-based military supplier Jankel Tactical Systems to armour 76 Toyota Land Cruisers.

Once manufactured, the vehicles were to be placed in storage, pending shipment to Canada’s diplomatic missions in hotspots around the world, including Kyiv in Ukraine, Abuja in Nigeria, and Port-au-Prince in Haiti, among others.

Canada’s former ambassador to Haiti, Gilles Rivard, says without armoured vehicles, diplomats in dangerous places can’t do their jobs.

“Armoured vehicles in many countries are essential to preserve the life of people, because you never know what’s going to happen,” Rivard told Global News.

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But for nearly a year, Canada had no access to dozens of vehicles in its new fleet.

Canada signed the armoured vehicle deal with Jankel, which then subcontracted the storage of the Toyota Land Cruisers to a Jordanian company called Jordan Light Vehicle Manufacturing (JLVM).

According to government memos obtained by Global News, Jankel informed the government on April 27, 2022, that it would be “severing ties” with the sub-contractor “due to JLVM’s possible breach of UN sanctions.”

A United Nations panel claims it has documented several instances of vehicles manufactured by JLVM’s parent company — the Jordan Design & Development Bureau (JODDB), previously known as the KADDB — in use by the Haftar Armed Forces in Libya, allegedly in violation of a UN arms embargo.

The panel has not been able to determine how those vehicles allegedly ended up in Libya and in the hands of an embargoed group.

Global News has learned that once the relationship between Jankel and JLVM went south, the Jordanian subcontractor held dozens of Canada’s vehicles in a storage facility in Amman, refusing to release them.

A total of 54 vehicles were initially seized, according to a government memo.

“It became imperative that Global Affairs Canada relocate these vehicles immediately,” the document reads.

The vehicles didn’t come cheap, either. According to a government memo, Canada had paid more than $13 million for the dozens of vehicles that were seized — more than $240,000 apiece.

The federal government appeared to have little leverage to get the vehicles, since it had already paid most of the bill upfront, in accordance with the terms of the contract.

Alan Williams, a former assistant deputy minister of materiel with the Department of National Defence, said the contract should have withheld more of the payment until the vehicles were delivered to their final destinations.

Otherwise, there was no incentive for the company to deliver on time.

“No one should be paying 90 per cent in advance,” Williams said. “That should never be the case.”

The Jordan Design & Development Bureau, JLVM’s parent company, refused to answer Global News’ questions about whether it breached UN sanctions, nor would it comment on JLVM’s alleged seizure of the armoured vehicles.

“We don’t have the needed information to share as there are [sic] no current partnership between JLVM and Jankel Group Limited,” JODDB contract specialist Hisham Alrawashdeh said in a statement.

Jankel chairman Andrew Jankel told Global News that his company has “a good working relationship with JLVM,” but would not comment further, citing “various client confidentiality reasons.”

“We are very proud of our relationships with our customers, partners and suppliers,” he added.

Global Affairs Canada refused to answer questions about the alleged violations of UN sanctions and said the delivery dates were adjusted “due to supply chain delays and microchip shortages.”

“The vendor met the terms of the agreement at the time the contract was awarded,” said Global Affairs spokesperson James Emmanuel Wanki. “We cannot speak to the transactions between Jankel and other parties.”

Global News has learned that the armoured vehicles held by JLVM were finally released to Global Affairs in May 2023 — roughly a year after they were first seized.

Ottawa now expects the vehicles will be delivered to diplomatic missions over the next two years.

Still, Williams warns that government procurement in Canada is in chaos and suggested that this contract is yet another example of what he calls a “lack of accountability.”

“If you’re messing around and misapplying a contract of $20 million, what about all the others?” he said.

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