Internal audit informed Liberals’ defence procurement reforms, government says

OTTAWA — A recent internal audit that outlined major problems in military procurement led to some of the changes to the system introduced under Prime Minister Mark Carney, the federal government said on Friday.

A spokesperson for Stephen Fuhr, secretary of state for defence procurement, said the audit “helped inform” some of the policies being advanced through the new Defence Investment Agency.

Spokesperson Laurent Blanchard said this agency has “already accelerated several procurements to equip the Canadian Armed Forces with the tools it needs to defend our sovereignty.”

The agency is a new government office, created last fall, to streamline decision making and improve military procurement. It has already been at the centre of a number of high-profile purchases, such as the acquisition of a half-dozen Bombardier Global 6500 jets.

Blanchard credited the agency with speeding up the purchase of new modular assault rifles for the army by about two years.

The internal National Defence audit, which was conducted from 2024 to 2025 and surveyed years of past audits, was published quietly online recently.

It warned the complex and sluggish procurement system faces “persistent challenges,” even though it is “evolving rapidly” under Carney’s government.

“Despite significant progress, the evaluation identified persistent challenges, such as disconnected databases, heavy oversight and excessive project documentation requirements,” the report said.

Conservative defence critic James Bezan said Thursday it’s “outrageous” the audit shows the military had to wait anywhere from nine to 27 years for a variety of major purchases.

He said the Liberal government should not be adding new layers of bureaucracy such as the new procurement office.

The office is currently housed within Public Services and Procurement Canada, but is expected to be spun off into a more powerful independent agency through coming legislation.

The Liberal government has not yet spelled out what kind of changes it envisions for its future.

This report by The Canadian Press was first published April 17, 2026.