Commission of Inquiry into the Management of the Modernization of the Information Systems of the Société de l’assurance automobile du Québec
Quebec's 2024 Budget provides an overview over the various services and plans the province has over 2024 and into 2025. across the areas of health, education, industry, and the overall economy.
The Commission identified 12 major conclusions, structured around two levels:
- Internal failures in program management
- Deficiencies in governmental oversight
I. Problems in the Management and Implementation of the Program (1–7)
- Overly ambitious and rushed program
CASA was excessive in scope, concentrating too many simultaneous transformations within a single megaproject. - Centralized governance driven by delivery at all costs
Decision-making powers were highly concentrated, with weak internal counterbalances. - Insufficiently validated technological choice (ERP system)
There was no rigorous comparative analysis before selecting an enterprise resource planning (ERP) system. - Deficient procurement process
The contracting strategy limited competition and did not ensure best value for the State. - Inadequate contractual model
A poorly structured hybrid model contributed to cost overruns. - Cost escalation and budget dilution
Program costs increased significantly (from approximately $200M to approximately $955M over 10 years), compounded by internal reallocations that obscured financial transparency. - Poorly prepared deployment (Release 2)
Testing was incomplete, significant defects remained, and change management was insufficient.
II. Level of Knowledge and Government Oversight (8–12)
- Incomplete information provided to central authorities
Government authorities did not have an accurate and comprehensive picture of the situation. - Ineffective monitoring mechanisms
Existing oversight mechanisms failed to detect and correct the program’s drift in a timely manner. - Financial parameters altered during implementation
Successive budget adjustments obscured the true evolution of costs. - Inadequate disclosure rules for cost overruns
The current reporting framework does not always reflect the real magnitude of deviations. - Insufficient institutional safeguards
Internal and external control mechanisms did not provide effective protection against the project’s systemic drift.
General Conclusion
The Commission concludes that CASA’s failure resulted from a dual breakdown:
- Internal governance failure within the SAAQ
- Systemic failure in governmental oversight
The issue was not merely technological, but structural in nature:
governance architecture, contractual oversight, financial transparency, and institutional accountability.
The 26 Recommendations of the Gallant Commission:
I. Centralized Digital Expertise
- Create a government entity specialized in digital transformation.
- Make its involvement mandatory at key stages of major projects.
- Provide it with sufficient financial and human resources.
- Require an organizational maturity assessment before authorizing a major project.
II. Governance of State-Owned Enterprises
- Explicitly codify ministerial responsibility toward state-owned enterprises.
- Clarify the accountability obligations of boards of directors.
- Strengthen the role of the board in the selection and oversight of the CEO.
III. Reform of Digital Projects
- Prioritize modular projects rather than large-scale megaprojects.
- Structure initiatives as “programs” grouping smaller projects.
- Cap the cost of technology projects (suggested ceiling: approximately $50 million).
- Limit the duration of technology contracts.
- More strictly regulate hybrid contractual models and partnerships.
IV. Transparency and Accountability
- Centralize financial data for major projects.
- Standardize budget indicators and financial parameters.
- Improve the public dashboard for digital projects.
- Maintain a complete historical record of financial parameters.
- Amend the disclosure rule for cost overruns (dual threshold).
- Regulate the publication of out-of-court settlements.
- Strengthen the independence and expertise of audit committees.
- Implement continuous internal audits for major projects.
V. Strengthening Institutional Safeguards
- Expand the investigative powers of the Autorité des marchés publics (AMP).
- Reform lobbying legislation.
- Modernize the Act respecting public inquiry commissions.
- Grant certain inspection and search powers in the context of inquiries.
- Strengthen whistleblower protection before a commission of inquiry.