Ottawa, July 31, 2026—Defence Construction Canada released the report of the special examination completed by the Office of the Auditor General of Canada. The corporation provides infrastructure and contract management services to National Defence and other federal organizations. The audit focused on Defence Construction Canada’s corporate management practices and its management of operations.
Overall, the examination found that the corporation managed its operations well and had in place good corporate management practices. The audit found no significant deficiencies, but there were opportunities for improvement in the areas of governance and risk management.
For example, the audit found opportunities for improvements in the corporation’s process for declaring conflicts-of-interest for members of the Board of Directors and employees. Conflict-of-interest declarations did not include an assessment of potential relationships with companies, contractors, or consultants doing business with the corporation. Including such an assessment will further strengthen the corporation’s ability to manage any real, apparent, or perceived conflicts of interest.
Under the Financial Administration Act, federal Crown corporations are subject to a special examination by the Auditor General of Canada at least once every 10 years. These examinations focus on systems and practices that are key to providing the Crown corporation with reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively. Special examination reports are therefore a source of important information that parliamentarians can use to hold Crown corporations to account.
The 2026 Report of the Auditor General of Canada to the Board of Directors of Defence Construction Canada is available on the Office of the Auditor General of Canada website.
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