Canada\u0027s terms encourage companies to bid low to win contracts and then receive up to 90% of the payment before delivery, observers say.
Global Affairs did not explain why delivery has been delayed.
Despite repeated requests, Global Affairs would not confirm how much money was paid to Jankel in advance of delivery. Industry observers say the terms of business offered by Canada encourage companies to bid low to win contracts and then receive up to 90 per cent of the payment before delivery. They point out that organizations like the United Nations, Red Cross and European Union pay only after delivery.
The company then won contracts in 2018 and 2021 for a total of 81 vehicles, after submitting the lowest bids.
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