The Gallant inquiry into Quebec's auto insurance board's failed digital transition project is centering on testimony from Karl Malenfant, the former vice-president of digital experience at the Société de l’assurance automobile du Québec (SAAQ) and project director for its CASA modernization initiative.
Malenfant, who oversaw the SAAQclic platform from inception to its troubled launch in February 2023, told the commission he assured senior ministers in 2021 and 2022 that the project was on track and within budget. Transport Minister François Bonnardel and then-cybersecurity minister Éric Caire were shown presentations indicating the budget, originally set at $638 million, was still under control at around $682 million.
In reality, the scope of the project was expanding. Labour hours had been underestimated by more than one million, triggering a dispute with IT supplier LGS. The SAAQ eventually agreed to provide an additional $222 million to keep the firm on board rather than face $80 million in penalties and further delays if the contract were terminated.
According to a report from CBC, the inquiry heard that by March 2025, costs had escalated to $1.09 billion, with projections topping $1.1 billion if a third phase goes ahead. The Quebec auditor general had already criticized the project earlier this year, pointing to weak oversight and diminishing profitability.
Malenfant admitted the full history of the project and reinvestment amounts were not disclosed to ministers. He said Bonnardel was focused on delivery timelines rather than financial details, while Caire was not directly responsible for the budget. Commissioner Denis Gallant questioned whether ministers should have pressed for more transparency.
The project’s trajectory had raised red flags earlier. In 2019, IBM, the parent company of LGS, warned the SAAQ that CASA was “too big, too much, too fast.” Those concerns did not alter the project’s course.
Malenfant’s testimony has been marked by combative exchanges with inquiry counsel Alexandre Thériault-Marois, including disputes over whether he improperly accessed IT supplier bids. His appearance is the longest of any witness to date, underscoring his central role in the saga.
The inquiry, which has already heard from Premier François Legault and several former ministers, continues until at least mid-October. Its findings are expected to shape how Quebec manages future large-scale digital projects tied to public services such as auto insurance.
Similar modernization efforts in other provinces provide a contrast. Ontario’s Ministry of Transportation has gradually expanded online driver’s licence renewals and vehicle registrations with fewer disruptions.
In British Columbia, the Insurance Corporation of British Columbia (ICBC) has also rolled out online services, though it faced challenges with delays and customer frustrations during its own transition. Compared with these phased rollouts, Quebec’s all-at-once approach to SAAQclic has drawn scrutiny for both its cost overruns and its impact on service delivery.
