Feds, Telesat reject favouritism allegations surrounding Arctic contract

Both the federal government and Telesat Corp. are dismissing complaints by the Conservatives alleging that favouriteism played a role in the awarding of a military contract to the Ottawa-based carrier. Tory defence critic James Bezan (Selkirk-Interlake-Eastman, Man.) wants the government to release details of the $2.3 billion deal to supply satellite service to the Canadian Armed Forces (CAF) in the Arctic. He points out that Prime Minister Mark Carney (Nepean, Ont.) and Telesat CEO Dan Goldberg are friends. The other side says that is a coincidence. Sofiya Sapeha, spokeswoman for secretary of state for defence procurement Stephen Fuhr (Kelowna, B.C.), maintains due diligence was observed in the awarding of the contract, called ESCP-P. “As noted by the Privy Council Office, ‘a conflict-of-interest screen is administered by the Prime Minister's chief of staff and the clerk of the Privy Council to ensure that the prime minister is neither informed of official matters or decision-making processes involving the interests of the companies concerned, nor called upon to participate in them,’ she emailed The Wire Report. Telesat’s senior director of government affairs and strategic accounts, Stephen Hampton, reminds people that the contract was first put up to tender during the administration of former prime minister Stephen Harper. “This contract was awarded following a lengthy and rigorous process that included detailed options analysis,” he wrote The Wire Report. “We are the only Canadian company that can provide secure, Low Earth Orbit Mil-Ka connectivity and, in our view, no alternative could have provided comparable value to the taxpayer while delivering this mission-critical capability to the CAF by 2028 – nearly a decade ahead of the original program timeline.” Bezan was not available for comment but told the CBC’s Murray Brewster he wants to see the details of the deal. “This is about a matter of trust and transparency,” he is quoted as saying. “We’re calling for a release of the contract, the terms of the contract and the decision-making process that was used by the government right up to the prime minister and cabinet.” Sapeha cited the strengthening of Arctic security and the creation of 2,600 jobs across the country as benefits of the arrangement with Telesat. ppark@thewirereport.ca

Feds, Telesat reject favouritism allegations surrounding Arctic contract

Telecom |
By Paul Park
|August 12, 2026

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Feds, Telesat reject favouritism allegations surrounding Arctic contract

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|August 12, 2026