Neptune barred from receiving federal public contracts

Until further notice, a private security firm that has secured public contracts worth hundreds of millions in the last decade will no longer be able to offer its services to the federal government, a byproduct of the scrutiny that came after Radio-Canada's Enqute program revealed that the head of the company conducts business using two identities.

Neptune's list of clients includes the Sret du Qubec (Quebec's provincial police force)and several courthouses in the province. It also received roadwork contracts with Ontario's Transport Ministry.

According to Radio-Canada, the man in charge of Neptune's operations, Robert Butler, was notnamed in the company's corporate structure submitted to the Autorit des marchs publics (AMP), the agency that oversees public contracts in Quebec.

Butler also uses the name Badreddine Ahmadoun when he is running a real estate agency based in Mississauga, Ont.

Last month, the AMP added Neptune in the province's registry of companiesinadmissible to public contracts for failing to disclose who its real leaders are. It also said the company's use ofmultiple numbered companies unauthorized to hold contracts allows it to evade the law.

The private security firm is challenging that decision in court, and a Quebec Superior Court judge has agreed to suspend thedecision until May 18, pending arguments.

Until that time, the company is legally allowed to be awarded public contracts or subcontracts in Quebec.

At the federal level, however, Neptune is barred from bidding on projects. In some cases, the company's contracts have been cancelled, according to Public Services and Procurement Canada.

"All active contracts with Public Services and Procurement Canada have been examined, and those that presented a risk deemed to be too high have been terminated," reads an email from the ministry, which manages federal public contracts.

The ministry also said it is following developments regarding Neptune closely and described details about the company as "concerning."

According to the office of Helena Jaczek, Canada's minister of public services and procurement, the federal government has suspended Neptune's ability to bid on contracts until a "full evaluation" is completed.

When contacted by Radio-Canada, Neptune declined to comment on the federal government's suspension of its bidding privileges and the cancellation of some of its contracts.

Last February, during a meeting with a Radio-Canada contributor that was recorded by a hidden camera, Butler said his company had contracts with the Department of National Defence (DND) and "top secret" clearances from the federal government.

WATCH| Hidden camera footage of meetings with head of Neptune:

Hidden camera footage captures 2 meetings with man behind security firm

2 years ago

Duration 0:51

Radio-Canada contributors secretly recorded two meetings with the man behind the private security firm Neptune.

Military contracts

Neptune, which also does construction work, has made millions from contracts with the DND.

In recent years, Neptune has done work on military bases in Ontario, in the municipalities of Trenton, Kingston and Borden. As of last week, the company was still receiving public funds in exchange for the upgrade of the video surveillance system of the Denison Armoury in North York.

Certain verifications are necessary for these types of contracts, given the sensitive nature of the work and the locations. Butler, the head of Neptune who uses two identities, was supposed to have been the subject of a security check.

According to documents from the call-to-tender process consulted by Radio-Canada, one of the contracts required a security grade of "secret."

"What is the government of Canada doing with the contracts given to Neptune by the Royal Canadian Mounted Police and the DND," Conservative Sen. Claude Carignan asked the government's representative in the upper house on March 28.

The RCMPhad previously confirmed to Radio-Canada that it had done business with Neptune. The RCMP now denies this, and describes the confirmation it gave as an "administrative error."

Neptune also won four bids reserved for Indigenous entrepreneurs through Defence Construction Canada (DCC).

According to Radio-Canada, those bids are being analyzed to determine if Neptune followed the rules for the attribution of those contracts. DCC told Radio-Canada it is aware of the ongoing examination of Neptune's practices and the company's suspended bidding privileges.

Neptune also provided private security services to Justice Canada, Immigration Canada, the Canada Border Services Agency and the National Security and Intelligence Review Agency.

The Bureau de la scurit prive, which issues permits to private security companies and regulates that industry in Quebec, is also investigating Neptune.