Ottawa has increased its national security requirements based on a risk review, and as a result, Global Affairs Canada will not proceed with a $6.8 million contract with a partially Chinese state-owned security company that was to install and run X-ray scanners in Canada’s embassies around the world.
In July, Ottawa posted details of a “standing offer” from Nuctech, which would see the Beijing-based company install X-ray scanning equipment and software in 170 Canadian embassies, consulates and high commissions worldwide.
However, after critics raised concerns the company is closely associated with Chinese Communist Party leaders, Global Affairs Canada (GAC) announced a review.
In a hearing Wednesday in Ottawa, a GAC official said a review by Deloitte Canada recommended the federal government only install security equipment in Canadian embassies, from companies with high-level national security clearances.
The official said when Ottawa accepted Nuctech’s standing offer, existing security requirements judged that Nuctech’s equipment would not present a security risk, because it would only be installed in public areas and would not be connected to Canada’s secure information networks.
Meanwhile, Michele Mullen, director-general for the Canadian Centre for Cyber Security, said the centre wasn’t approached by GAC to do a national security risk review on Nuctech’s bid.
Mullen said Ottawa now recognizes, after the Deloitte review, that the type of security equipment Nuctech was to provide, could be used to access information networks, if installed in Canadian foreign missions.
Meanwhile, Global News found that since 2017, Nuctech had been awarded four border security and customs warehouse contracts valued at $6.5 million to provide scanners and lab equipment to Canada Border Services Agency (CBSA), according to procurement documents.
This is despite mounting concerns among some national security experts about Nuctech’s growing access to sensitive facilities worldwide.
Nuctech, which was headed by the son of former Chinese President Hu Jintao for several years, has accumulated a number of sensitive airport and border security infrastructure contracts around the world.
According to the Nuctech website, the company has customers in 160 countries.
However, Nuctech has also garnered criticism over alleged corruption in its business dealings in Africa.
Elected officials questioned government officials Wednesday about complaints against Nuctech in other countries.