ArriveCAN and the Cost of Weak Procurement Oversight

Procurement scandals are not unique to Hong Kong

The recent Hong Kong bottled water scandal has drawn significant public attention, but it is far from an isolated case. Around the world, governments and organizations have faced similar controversies. One high-profile example is Canada’s ArriveCAN application, which became a case study of how procurement missteps can escalate into major public trust issues.

The ArriveCAN case in Canada

Originally developed during the pandemic to manage cross-border travel requirements, the ArriveCAN app was expected to cost only a few hundred thousand Canadian dollars. However, its development ballooned to more than CAD 60 million. Investigations later revealed weak oversight, questionable contracting practices, and poor cost control. What began as a public health tool quickly turned into a procurement scandal, raising questions about governance and accountability.

Common procurement mistakes across both cases

The Hong Kong bottled water scandal and the ArriveCAN debacle share striking similarities. Both highlight:

• Inadequate due diligence in verifying vendor claims and capabilities.

• Over-reliance on documentation without robust validation.

• Lack of cost transparency and value-for-money considerations.

• Weak accountability in contract monitoring and oversight.
  These mistakes are not technical in nature—they are failures of basic procurement discipline.

Procurement is not rocket science

Good procurement does not require advanced theories. It is rooted in common sense. Just as a family decides whether to buy bread from Walmart or Tesco based on price, quality, and trust, organizations should apply the same principles on a larger scale. Asking the right questions, validating claims, and comparing options carefully are fundamental steps that prevent costly mistakes.

The importance of accountability and audit

Without accountability, the same procurement failures will repeat themselves. Strong policies and procedures mean little if they are not enforced. This is where internal audit plays a vital role. Auditors should ensure that procurement processes are part of the regular audit plan, providing independent assurance that risks are managed, due diligence is performed, and accountability is upheld. Only then can trust in public procurement be rebuilt.