A medical supply company chaired by former Liberal deputy prime minister Sheila Copps is suing a federal pandemic contractor for up to $100 million in unpaid commissions, alleging it played a key role in securing more than $2 billion in COVID-19 rapid test orders.
The lawsuit, filed by MediPro Canada Inc. in Ontario Superior Court in 2023, accuses BTNX Inc. of breaching a contract under which MediPro claims it was entitled to a 3.5 per cent commission on government sales.
The manufacturer received 15 federal contracts during the pandemic to deliver 404 million rapid tests.
MediPro alleges it facilitated key introductions between BTNX and federal agencies at the onset of the pandemic and was “instrumental” in promoting the company to officials at Health Canada and other departments.
The firm estimates it is owed over $100 million, based on the scale of BTNX’s government contracts.
BTNX disputes the claims and alleges that if MediPro did assist in securing federal business, it did so “by illegal means,” citing unregistered lobbying activity by Copps.
“If Medipro caused the Government of Canada to procure Products or award a procurement contract for Products, or to meet with BTNX, as alleged in the Statement of Claim, then it did so by illegal means by lobbying the Government of Canada in contravention of the Lobbying Act,” the company said in its legal defence.
Copps, who served 23 years in elected office and held senior cabinet roles under former prime minister Jean Chrétien, has denied lobbying.
She told National Post in 2021 that she had consulted the Office of the Commissioner of Lobbying and was informed she did not need to register, claiming she was acting as a “salesman,” not a lobbyist.
Newly disclosed correspondence, however, shows Copps arranged meetings with senior officials at Procurement Canada and Health Canada throughout 2020.
In one instance, she helped BTNX secure a meeting with Health Canada within a day of requesting it. The company began receiving federal contracts shortly thereafter.
Federal law prohibits unregistered lobbying by paid third parties and bans contingency fee arrangements for securing government contracts.
Experts say the outcome of the lawsuit could hinge on whether the court finds the commission agreement enforceable or void due to a potential violation of the Lobbying Act.
“If she received compensation and arranged meetings for third parties, that could be a clear violation,” said Robert Shepherd, a professor of public policy at Carleton University.
“You can’t charge contingency fees for lobbying unless you’re a registered consultant lobbyist.”
Copps and MediPro executives did not respond to requests for comment. BTNX declined to speak about the lawsuit, which has not advanced beyond the initial pleadings.
The Office of the Commissioner of Lobbying declined to confirm or deny whether Copps was ever given guidance not to register, citing confidentiality.
However, it stated the commissioner “has never issued an exemption that would allow an individual or company to disregard the Lobbying Act.”
The case comes amid ongoing scrutiny of federal pandemic procurement, which has already seen controversy over the ArriveCan app, WE Charity, and foreign-sourced PPE.