The federal government pre-paid $20 million for COVID-19 tests from Ottawa-based Spartan Bioscience that it never received because they never worked as promised, according to new documents.
Now, the Public Health Agency of Canada says it is writing off the amount as a loss pending the company’s liquidation, according to information recently tabled in the House of Commons and in the 2021 federal public accounts.
“The company went through insolvency proceedings and is now being liquidated. By law, once a person or a company is in the insolvency process, no one can sue or attempt any other form of recovery. No litigation is allowed and all procedures go through the Trustee and is a public process,” reads the document.
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