RCMP scraps tech contract worth $550K with firm tied to China after outcry

The RCMP is suspending a radio communications contract with an Ontario-based company that has ties to China amid concerns of foreign interference, according to Public Safety Minister Marco Mendicino’s parliamentary secretary.

Pam Damoff said during question period in the House of Commons Thursday that the RCMP has suspended an Oct. 2021 contract with Sinclair Technologies, which designs and manufactures communications products for radio frequency equipment.

“The RCMP have confirmed that the contract with Sinclair Technologies has been suspended and that they’re conducting further reviews to ensure that the integrity of our infrastructure is in place,” Damoff said.

Global News reached out to RCMP separately Thursday for confirmation but has yet to hear back.

Public Services and Procurement Minister Helena Jaczek also said during question period that her ministry will “look very closely” at its procedures for awarding contracts “with the greatest intensity to ensure (the) security of our infrastructure.”

Protecting the RCMP’s land-based radio communications from eavesdropping was one of the system’s purposes. The $549,637 contract was valid until March 31, 2024.

Sinclair’s parent company, Norsat International, was purchased by Hytera Communications in 2017. The Chinese government owns about 10 per cent of Hytera through an investment fund, Radio-Canada reported on Dec. 7. That firm is blacklisted over national security concerns by the United States Federal Communications Commission.

Hytera 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 the Canada’s 5G telecommunications network in May.

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The RCMP told Global News in a statement Wednesday that radio frequency filtration equipment “poses no security concerns nor does it allow access to radio communications.” PSPC told Radio-Canada it did not take security concerns and Sinclair’s ownership into consideration during the bidding process.

That revelation drew criticism in Ottawa, and a promised review by Prime Minister Justin Trudeau, whose government recently unveiled a policy reset on how Canada handles investment, co-operation, competition and strategic challenges posed by China.

Sinclair Technologies has been awarded 24 government contracts by Public Service and Procurement Canada (PSPC) 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.

A department official told Global News the contracts appeared to be mainly for antenna devices that amplify and receive but don’t transmit information. DND has launched an investigation into 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 Thursday.

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

— with files from The Associated Press