20.04.2025

"Quebec's $500M Auto Insurance Scandal Unfolds"

MONTREAL — The Quebec government is grappling with a controversy that could be the biggest political scandal in the province since the Charbonneau commission, which found deep corruption in the construction industry, observers say

MONTREAL – The Quebec government is currently embroiled in a controversy potentially seen as the largest political scandal in the province since the Charbonneau commission, which unveiled extensive corruption in the construction industry. This recent debacle revolves around the digital transformation of Quebec’s auto insurance board, which has incurred over half a billion dollars in cost overruns, dominating headlines in Quebec since a scathing report by the auditor general was published nearly two weeks ago. The scandal has already led to the resignation of one minister from the Coalition Avenir Québec (CAQ) government.

On Sunday, Premier François Legault declared his intention to initiate a public inquiry to investigate the situation further. This announcement followed a series of news reports indicating that several members of his government may have been aware of issues with the board's new online platform prior to its problematic rollout.

Émilie Foster, an adjunct professor of political management at Carleton University and a former CAQ member, remarked that such a controversy has not been witnessed in Quebec for a long time. In early 2023, the Société de l’assurance automobile du Québec (SAAQ) faced significant challenges with the launch of its online platform, SAAQclic, leading to extensive delays and long queues at SAAQ branches, where residents must take road tests, register vehicles, and renew driver’s licenses.

Reports indicated that the fiasco escalated last month when Quebec's auditor general revealed that the overall costs associated with the online platform exceeded $1.1 billion, with overruns of at least $500 million. Initially, Legault’s ministers claimed unawareness of the surging costs and accused the auto board of misleading them. However, further media investigations have suggested that at least two ministers, along with members of the executive council, were aware of the problems before SAAQclic's launch in February 2023.

In light of growing scrutiny, Éric Caire resigned from his position as the minister of cybersecurity and digital technology last Thursday. In an interview on Monday, Legault insisted he was unaware of the cost overruns and the ensuing chaos, adding that the inquiry would conclude before the next election in October 2026.

Foster indicated that while the SAAQclic scandal may not yet reflect government corruption akin to that revealed by the Charbonneau commission, it still poses a significant risk to the government's reputation, which has already been faltering in public opinion polls. She described this situation as a considerable exposure risk, suggesting constant defensiveness from the government.

Furthermore, Martine Valois, a law professor at Université de Montréal, emphasized that the controversy illustrates ongoing issues highlighted by the Charbonneau commission, especially concerning inadequate oversight of public contracts. She noted a similar lack of expertise within the public service, leaving the government vulnerable to contracts with companies that exploit this gap in knowledge.

Last week, the government sought an investigation from the province’s financial watchdog, Autorités des marchés publics, and the anti-corruption police. However, this move did not quell opposition parties, which had been demanding a public inquiry for several days. Eventually, Legault relented to this pressure over the weekend.

In a letter to Legault on Monday, Parti Québécois Leader Paul St-Pierre Plamondon expressed skepticism about the official narratives claiming ignorance regarding the auto board’s issues, suggesting that if ministers and high civil servants were aware, the premier likely was too. Liberal legislator Monsef Derraji raised concerns about the SAAQ's choice to conceal $222 million in cost overruns from the public during the 2022 election campaign, attributing this decision to a desire to avoid "media and political risk."

Québec solidaire member Haroun Bouazzi illustrated that the SAAQclic failure is indicative of systemic issues within Quebec’s IT project management, referencing multiple instances of escalating costs in similar projects, including one initiated by the previous Liberal government. Bouazzi argued for an inquiry into why the government consistently struggles with delivering technology systems efficiently.

This unfolding situation raises critical questions regarding project management and accountability within the Quebec government, compelling the public and opposition parties to demand comprehensive answers as the scandal develops.