How did firm with ties to China get RCMP contract? MPs vote for committee probe

The House of Commons industry and technology committee will study how a Canadian firm with ties to China was previously awarded RCMP communications work.

Members of the standing committee voted on Monday in favour of a study into a 2021 deal involving Ontario-based Sinclair Technologies, a communications company that was awarded a $549,637 contract for RCMP radio communications work. The RCMP suspended that contract last Thursday.

The contract came under fire last week when Radio-Canada first reported Sinclair’s parent company, Norsat International, was purchased by Hytera Communications in 2017, and reported that the Chinese government owns about 10 per cent of Hytera through an investment fund. The firm is blacklisted over national security concerns by the United States Federal Communications Commission.

“I think that that is important, that we actually requested this meeting and that we undertake this study,” said Bloc Québécois MP Sébastien Lemire, the committee’s vice chair, in French during the meeting.

“Now, ministers are going to be accountable depending on the questions that come from the committee. I think that we have to do this.”

1:23 Poilievre ridicules recent reports of RCMP contract being awarded to company with alleged Chinese ties

Committee members voted in favour of a Bloc Québécois amendment to an original motion proposed by Conservative MP Rick Perkins, who is also a committee vice-chair.

The Bloc’s motion called for Public Safety Minister Marco Mendicino to appear before the committee “as soon as possible” as part of “a study concerning the contract awarded to Sinclair Technologies, which is owned by Norsat International, a subsidiary of Chinese telecommunications firm Hytera, a partly state-owned enterprise by the Communist Party Government of the People’s Republic of China.”

The committee also adopted the party’s motion to hear from Innovation Minister François-Philippe Champagne, as quickly as possible, on “any questions that the members of the committee deem relevant.”

Following Radio-Canada’s Dec. 7 report, the RCMP put the 2021 work order with Sinclair on pause “until further notice” pending a review of installed equipment. The contract for radio frequency filtering equipment was valid until March 31, 2024.

RCMP spokesperson Cpl. Kim Chamberland told Global News on Dec. 8 that while RCMP radio communications “are protected by end-to-end encryption” and radio frequency filtration equipment “poses no security concerns” or allows access to those communications, the equipment will be reviewed “to determine if any further action is required.”

Hytera, which owns Sinclair’s parent company, faces 21 charges related to espionage in the United States for allegedly stealing technology from Motorola Solutions. The company was charged in February. It was blacklisted in 2021 alongside ZTE and Huawei. Those two companies were banned from participating in the development of Canada’s 5G telecommunications network in May.

The revelation drew criticism in Ottawa, and descriptions of the deal as “disconcerting” by Prime Minister Justin Trudeau, whose government recently unveiled policy resets on how Canada handles investment, cooperation, competition and strategic challenges posed by China.

Sinclair Technologies has been awarded 24 government contracts by Public Service and Procurement Canada since 2009. Sinclair has done work for the RCMP, the Department of National Defence (DND) and Fisheries and Oceans Canada.

The majority of the 11 RCMP contracts awarded to Sinclair over the years were for “antennas, waveguides and related equipment.” Two contracts were given for “radio and television communications equipment, except airborne.” While some RCMP contracts have no value associated with them, one contract that was awarded in 2013 and expired in 2018 was worth $1.5 million.

Sinclair was awarded a contract for Fisheries and Ocean in 2019 to do structural and prefabricated work. The contract was worth $93,020 and expired in 2020.

Meanwhile, Sinclair was given 12 contracts worth a total of $252,296 for work between 2009 and 2013. National Defence headquarters, Maritime Forces Atlantic, Canadian Special Operations Forces Command headquarters and CFB Esquimalt were listed as the primary end users.

2:16 RCMP investigation into Chinese interference expands

A department official told Global News the contracts appeared to be mainly for antenna devices that amplify and receive but don’t transmit information. The department is probing the contracts.

“We are aware of the concerns surrounding Sinclair Technologies. We are investigating these procurements and the way in which this equipment is used, alongside counterparts in other government departments,” a DND spokesperson said last Thursday.

“The government will take all measures necessary to ensure the security of our infrastructure.”

— with files from Global News’ Sean Boynton and The Associated Press