RCN iAOR M/V Asterix Refuels Two US Navy Vessels

By: David Pugliese, Defence Watch

MV Asterix, accompanying Royal Canadian Navy ships, replenished two US Navy vessels at the same time in the North Atlantic this week. The USN ships are USS Bainbridge and USS Mitscher. Davie, the shipyard that converted the Asterix into a resupply vessel, released photos of the event. See photo below:



The refueling operation comes the same week Vice Admiral Mark Norman’s case is back in court. Norman is charged by the RCMP with one count of breach of trust. The police force alleges Norman released information that the Trudeau government wanted to derail the Asterix project. That information eventually found its way into the news media, forcing the Liberal government to back away from its plan.

Norman says he did nothing wrong and he looks forward to proving his innocence.

Navy Supply Ships Delayed...Again

By: David Pugliese, The National Post 

Construction of the navy’s supply ships won’t start until 2019, the federal government says, yet another delay in outfitting the maritime service with a critical capability.

Work on the first Joint Support Ship at Seaspan shipyards in Vancouver was supposed to begin this year, but federal officials recently refused to outline to parliamentarians the building and delivery schedule for those vessels.

However, in the newly released update on the progress on the government’s shipbuilding strategy, the Liberals report that construction will begin in 2019.

The update, which covers progress made throughout 2016, is a mix of old and new information and includes an introduction by Procurement Minister Carla Qualtrough. Design work is continuing on a number of vessels, including the supply ships, writes Qualtrough, who took over the portfolio from Judy Foote in August.

Yet another delay for the Joint Support Ships cements the need for the leased supply ship, MV Asterix, which was acquired as a stop-gap measure so Canadian warships could be refuelled and resupplied at sea, navy officers privately say.

The Asterix, a commercial ship converted by Davie shipyards to perform a military supply role, is at the heart of the federal government’s case against Vice Admiral Mark Norman.

Norman has been accused by the RCMP of warning Davie that Liberal cabinet ministers wanted to derail the Asterix project.
Man overboard: Inside the fall of Vice-Admiral Mark Norman
Supply ship project delay means DND postpones $20-million payment
Two years after Liberals were accused of trying to scuttle it, new supply ship arrives in Halifax for navy training

That development leaked out to the news media and the resulting embarrassment forced the Liberal government to back down on its plans and Asterix proceeded. Royal Canadian Navy sailors are currently training on the ship on the East Coast and Asterix will be available in the coming months to resupply the navy’s vessels.

Norman, who was suspended from his job by Chief of the Defence Staff Gen. Jon Vance more than a year ago, has denied any wrongdoing. No charges have been laid against Norman and the claims made against him by the RCMP are so far unproven.

Norman had at times warned parliamentarians about the need to deal with the gap in supply ships because of his concerns that construction of the Joint Support Ships had fallen behind schedule.

The navy had hoped to get the first ship in 2021 and the second in 2022. The update issued by Qualtrough and posted to her department’s website on Dec. 17 still uses those dates. Industry officials, however, have said that those delivery dates are highly unlikely.

Last week Postmedia reported the Department of National Defence was holding off on spending $20 million on the Joint Support Ships because of ongoing delays but the department did not issue details about the timeframe. In an email, the DND noted the money would not be spent this year “due to delays in project approvals and contract awards, delay in construction of ships.”

Taxpayers will eventually spend $2.3 billion on the ships once the project is fully underway.

In late November, the federal government told MPs it can’t provide them with a schedule for the delivery of the new ships or the coast guard’s Polar-class icebreaker because it deems such information secret.

The refusal to provide such basic details to MPs on shipbuilding programs that are costing billions of dollars was a warning construction of the vessels had fallen further behind schedule, said industry representatives and Conservative MP Todd Doherty.

Qualtrough’s press secretary, Ashley Michnowski, noted the Liberal government has made a commitment to be transparent in communicating the progress on the national shipbuilding program. “Pulling together data and information for this first annual report was complex as it involved input from multiple departments and companies,” she noted. “We are now in a better position to provide more timely reporting moving forward.”

The update contains details of maintenance contracts for the Victoria-class submarines.

It also highlighted the work to convert Asterix, noting that 700 people are employed at Davie by the program.

But neither the submarines nor Asterix is part of the national shipbuilding program. In addition, Davie has laid off many of those workers since the Liberal government has refused to proceed with the conversion of a second supply ship and has rejected other ship proposals from the company.

RCMP Accuse Vice-Admiral Norman of Leaking Cabinet Secrets

ROBERT FIFE, STEVEN CHASE AND DANIEL LEBLANC
The Globe and Mail

The RCMP allege Vice-Admiral Mark Norman violated the Criminal Code by leaking government secrets, an accusation that arises from a 16-month probe into the release of information about cabinet deliberations to a Quebec-based shipbuilder that wanted Ottawa to stop delaying approval of a $667-million contract for an interim naval supply ship.A breach of trust conviction under Section 122 of the Criminal Code carries a sentence of up to five years in prison.

The RCMP investigation into the leaks – called Project Anchor – has not yet resulted in charges against Vice-Adm. Norman, who has served in the navy for 36 years.

Read also: Vice-Admiral Norman's removal from post shocks friends, colleagues

On Wednesday, an Ottawa court released an affidavit and supporting documents, including e-mails, that police used to obtain a warrant to search Vice-Adm. Norman's home earlier this year.

The documents show that the criminal probe has expanded to include interviews of prominent Ottawa lobbyists and executives of the Chantier-Davie Canada Inc. shipyard in Levis, Que. The Mounties also interviewed senior cabinet ministers, including Treasury Board President Scott Brison and top mandarins.

"Norman is suspected of having committed a Criminal Code section 122 breach of trust offence," RCMP Corporal Matthieu Boulanger wrote in an affidavit to obtain a search warrant to raid the Vice-Admiral's Ottawa home on Jan. 9. The Mounties also allege Vice-Adm. Norman violated the Security of Information Act.

The RCMP affidavit filed in the Ottawa courthouse alleges that Chantier-Davie shipyard and a sister company were attempting to press the Trudeau cabinet to stick with a contract the former Conservative government ordered in the final day of the October, 2015, federal election campaign.

Soon after taking power in November, 2015, the Trudeau Liberals put the supply ship project on hold after receiving a letter of complaint from Irving Shipbuilding Inc., which already had a multibillion-dollar contract to build the navy's new fleet of warships. This delay meant that cabinet might look at other, lower bids, threatening Chantier-Davie's contract.

The heavily redacted affidavit provides little idea of what the RCMP allege are Vice-Adm. Norman's motives. The senior naval officer, however, last year said delays in shipbuilding programs had hurt the navy. "It's important to keep in mind that [the delays were] completely avoidable," he said in 2016.

Irving Shipbuilding CEO James Irving tried to persuade the Trudeau Liberals to kill the sole-source contract with Chantier-Davie, arguing that his firm had offered a lower-cost option. Another shipbuilding firm, Vancouver-based Seaspan, called for an open competition and said it could convert a civilian cargo ship into a military supply ship at a significantly lower cost.


Court documents show that the RCMP obtained search warrants in the last two months of 2016 to seize the contents of Vice-Adm. Norman's mobile devices as well as e-mails from Spencer Fraser, CEO of Federal Fleet Services, the Chantier-Davie company in charge of the interim supply ship project.

The Mounties also raided the offices of Mr. Fraser and three Chantier-Davie executives and their Ottawa lobbyists: Brian Mersereau, chairman of Hill and Knowlton, and Kevin MacIntosh, a partner and senior vice-president at FleishmanHillard.

"As a result of the data seized at Chantier Davie, it was discovered that Spencer Fraser was supplying information subject to cabinet confidence to [Chantier-Davie vice-president John] Schmidt, to Alex Vicefield, CEO of Inocea, parent company of Chantier Davie, and to various lobbyists working on behalf of Chantier Davie," Cpl. Boulanger wrote.

Attempts to reach Mr. Fraser, Vice-Adm. Norman, FleishmannHillard and executives of Chantier-Davie on Wednesday were unsuccessful. Mr. Mersereau did not comment. There is no indication in the court documents that anyone other than Vice-Adm. Norman is under police investigation.

The Globe and Mail has gone to court to seek the release of an unredacted version of the warrant and production order used by the RCMP to search Vice-Adm. Norman's home.

Toronto lawyer Marie Henein, who is representing Vice-Adm. Norman, has obtained a court order to keep all potentially incriminating e-mails involved in the Norman probe under wraps. Lawyers for The Globe will argue in court that the material should be released except for parts dealing with cabinet confidentiality.

Ms. Henein has publicly asserted her client "was caught in bureaucratic cross-fire" and said his "sole objective" is to advance the country's national interest.

There was no indication of any bureaucratic infighting in the documents released by court on Wednesday.

The e-mails attached to the RCMP affidavit also suggest that lobbyists were planning to use the media to press Ottawa to rule in favour of the Chantier-Davie contract, and that Mr. Fraser developed a lobbying effort to get Quebec government to rally on behalf of Chantier-Davie.

Vice-Adm. Norman was Canada's second-most-senior military commander when he was suspended from his duties three months ago after RCMP raided his home and questioned him extensively. It is not known what the police seized during the raid or what the suspended military commander told the Mounties.

A curious feature of the Norman investigation is that it was set in motion by a story from then CBC radio reporter James Cudmore on Nov. 20, 2015. The story, citing secret deliberations, revealed cabinet had delayed approval of the Chantier-Davie contract for 60 days, the affidavit says. Two months after this story – and after an RCMP investigation had commenced – Mr. Sajjan hired Mr. Cudmore as a senior adviser.

Mr. Cudmore's story reported in detail on a cabinet decision to delay approval of the sole-source contract to Chantier-Davie.

In one e-mail discussion among Ottawa lobbyists that was part of the RCMP affidavit, one of them writes "the only thing we can do is sic the media and the union" on Social Development Minister Jean-Yves Duclos, who represents the Quebec City region. Mr. Mersereau at Hill and Knowlton writes: "Want me to try some of the media here?" Two days later, on Nov. 20, 2016, Mr. Cudmore reported on CBC that the Davie supply ship deal had been "halted by Liberals" and was "leading to concerns the plan will soon be scuttled and the navy will be left unable to properly defend Canada or deploy its forces abroad."

Mr. Cudmore also reported Mr. Irving had allegedly "meddled in the decision by sending letters to several cabinet ministers about the deal."

This CBC report went on to say "there was little risk" that Mr. Irving's concerns about the sole-source contract "could be successfully challenged."

The story took the Liberal cabinet by surprise. After the CBC report, Mr. Brison told the RCMP that "rendering of this [classified information] into the public domain did an awful lot to limit our ability to what we'd [the committee] intended to do, and that is more due diligence on this."

The government approved the Chantier-Davie deal on Nov. 30.

Mr. Cudmore also revealed in a Nov. 25 story that Seaspan CEO Jonathan Whitworth wrote to Mr. Sajjan expressing his interest in bidding on the supply ship contract.

Mr. Cudmore said on Wednesday that he has not seen the affidavit and has no comment.

The PMO ordered an internal investigation of the cabinet leaks, which led to the Mounties being summoned.

Editor's note: An earlier version of this story incorrectly said that the RCMP interviewed a former CBC journalist who is now a senior adviser to Defence Minister Harjit Sajjan. In fact, there is no mention of this in the affidavit. This is the corrected version.

Follow Robert Fife, Steven Chase and Daniel Leblanc on Twitter @RobertFife @stevenchase  @danlebla

Companies Request Bidding for Surface Combatant Fleet be Delayed

By: David Pugliese, National Post 

Two companies looking to bid on the multibillion-dollar project to build a new warship fleet for Canada have asked that the process be delayed as controversy swirls around the removal of a top military commander.

And at least another two companies are also preparing to make similar requests to the Canadian government and its prime contractor, Irving Shipbuilding, industry sources have told the Ottawa Citizen.

While the removal of Vice-Admiral Mark Norman from his command for allegedly leaking sensitive shipbuilding information has sent shock waves through the maritime industry, the main reason for the requested delay is because the Canadian Surface Combatant project is poorly structured and allows little time for firms to properly prepare bids, sources say.

But some industry representatives say the removal of Norman has only contributed to their worries that the warship project, worth more than $26 billion, is in trouble.

Norman, the former head of the Royal Canadian Navy, was the vice-chief of the defence staff until Jan. 13, at which point he was removed from command.


Chief of the Defence Gen. Jon Vance, who originally selected Norman for the VCDS position, made the decision to remove him.

Vance has refused to provide any details about the situation and his office claims all aspects of the case — including whether taxpayers are still paying Norman — are covered under federal privacy provisions.

Related
Suspension of high-ranking military officer casts clouds over Canada’s $35B shipbuilding plan
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Leak of information about shipbuilding plans behind removal of senior military officer, sources say

The mystery surrounding Norman’s removal, and allegations from sources that it was linked to the unauthorized leak of information about the Canadian Surface Combatant program, has only further raised questions about the project, company representatives contend.

The Liberal government announced Oct. 27, 2016, that Irving Shipbuilding had issued a request for proposals from companies on the design of the new warships.

The firms have until April 27 to provide those bids, which must not only include the design but details of teaming arrangements with Canadian firms.

Allowing only six months to compile bids for one of the largest procurements in Canadian history doesn’t make sense, say representatives of some of the companies. The extent of the technical data and other information the Canadian government requires is overwhelming, they added.

Jean-François Létourneau, a spokesman for Public Services and Procurement Canada, confirmed Thursday that Irving has received two requests for an extension to the closing date for the bids.

He did not provide the names of the firms requesting the extension.

“Irving Shipyards and the Government of Canada are considering these requests,” Létourneau noted. “Responses to these requests will be provided to all bidders.”

Twelve firms have been pre-approved to bid on the surface combatant program.

Over the past several months, various firms have highlighted to the Liberal government their serious concerns about the project and are frustrated Procurement Minister Judy Foote has not acted to deal with those issues, industry sources added.

The project will provide a future warship fleet for the Royal Canadian Navy.

Norman has not commented on his removal from command.

But the senior officer has been vocal in his concerns that the federal government seriously misjudged on the amount of money needed to build the Canadian Surface Combatants. In addition, he has privately raised concerns that the Royal Canadian Navy might not get enough ships in the future because of how the shipbuilding plan is devised.

Norman’s concerns are well known inside the Liberal government.

In December 2015, he told CBC journalist James Cudmore that the Canadian public had not been given accurate information about the growing price of the surface combatants. He said just the warships alone will likely cost $30 billion. With added costs, that price tag could climb to $42 billion.

Cudmore is now a procurement advisor for Defence Minister Harjit Sajjan.

Public Services and Procurement Canada declined to comment on whether Norman‘s removal will have any impact on the Canadian Surface Combatant program. It referred that question to the Department of National Defence.

DND refused to comment.

Prime Minister Justin Trudeau has refused to provide any additional details about Norman’s removal. But he and Sajjan said they supported Vance in his decision to remove Norman.

Suspended vice-admiral being investigated for alleged leak of classified shipbuilding data

By: Murray Brewster · Defence and security · CBC News

An allegation that Canada's second-highest ranked military commander leaked classified technical information related to the country's shipbuilding program is being investigated by the RCMP, CBC News has confirmed.

Mystery still shrouds the sudden removal of Vice-Admiral Mark Norman, but sources say the Mounties became involved after it was determined an investigation of the accusations by military police would constitute a conflict of interest.

As the vice-chief of defence staff, Norman has been responsible for the Canadian Forces National Investigation Service, which includes military police.

The RCMP are conducting a full-fledged investigation, the sources told CBC News.

Norman, who was pegged as a possible successor to Chief of Defence Staff Gen. Jonathan Vance, was relieved of his duties on Monday. The move was characterized as "temporary" by Vance's office, which has refused to answer questions about the circumstances.

The Globe and Mail reported Monday that Norman's removal was related to the possible leak of classified information.

Sources tell CBC News that the classified information involved technical information about the navy's shipbuilding requirements and expectations.

Defence sources, speaking to CBC News on the condition of anonymity, say the allegation predates Norman's appointment as vice-chief last summer and likely extends back to his time as commander of the navy.

None of the sources were able to say how serious the breach might have been, but insisted that neither the media nor a foreign power received the information.
Shipbuilding link

It has been suggested inside National Defence that the alleged leak involved the defence industry, which has been engaged in cutthroat competition over the planned multibillion-dollar frigate replacement program.

While in charge of the navy, Norman was intimately involved over several years in the development of requirements for the new warships. Those requirements are partly developed using intelligence and threat assessments of the capabilities of potential enemies, now and into the future.

A French navy frigate rests at berth in Halifax in 2013. Canada is in the process of selecting a design contractor for its frigate replacement program. (Andrew Vaughan/Canadian Press)

Before a request for proposals goes out to potential contractors, most of the military's classified annexes are removed.

Defence sources say a leak of data would likely have involved portions of those classified addenda.

Ken Hansen, a retired navy planner and defence analyst, said it would be a serious breach if that kind of data made its way into the defence industry.

"A competitor that saw the classified data would have a really good insight into what the Canadian government and what the navy itself thinks is most needed in going forward for future warships," he said.

"If this breach took place, it is a very serious compromise of intelligence information that should not be shared with unqualified people, and it could be an international incident depending on what the source of that intelligence was."

Bidders were recently asked to submit proposed warship designs to the federal government's go-to shipyard, Irving Shipbuilding in Halifax.

During his tenure as navy commander, Norman was also at the forefront of the decision by the former Conservative government to sole-source the lease of a navy replenishment ship from Federal Fleet Services Inc., which runs the Davie Shipyard in Levi, Que.
Probe began under Tories

The investigation into the alleged leak has been underway for some time and pre-dates the current Liberal government, according to one well-placed source.

Asked for comment, the RCMP said it "does not generally confirm or deny who or who may not be subject of an investigation."

"This is done to protect the integrity of an investigation, the evidence obtained and the privacy of those involved," Sgt. Julie Gagnon said in an email.

Military police said Monday they have not conducted a probe into Norman's activities, nor were they co-operating with an outside law enforcement agency, which has been the practice in previous national security cases.

Although the RCMP are apparently not bound by law to inform the military that one of their own was under investigation, the Mounties have served notice as courtesy in the past.

Additionally, whenever National Defence — or other federal departments — suspect a leak, an internal review is carried out by the department's security officer. There is no indication whether that took place in this instance.
High stakes

Dave Perry, an analyst at the Canadian Global Affairs Institute, said the stakes are high for Canada, particularly among its allies that share information with the federal government.

He said they'll need to be reassured, but cautioned the investigation needs to take its course.

"I think our allies will be asking us what's going on and basically they'll want to see what happens with the actual investigation that's underway," he said.

Late Tuesday, Vance, who is overseas in military meetings, attempted to address the growing controversy.

"I understand there is a great deal of speculation surrounding the circumstances that led to my decision with regards to Vice-Admiral Mark Norman," he said in a statement. "For privacy considerations I am unable to provide further information."

Prime Minister Justin Trudeau was asked about the controversy on Tuesday during his town hall in the Maritimes. He refused to discuss specifics, but said he backed the military's decision to suspend Norman.

"The chief of defence staff took a decision and this government supports Gen. Vance in the decision that he took, and I have nothing further to say on this at this time," Trudeau said.

Public Safety Minister Ralph Goodale was similarly reticent.

"I really can't make a comment at all," Goodale told CBC's Power & Politics.

On Monday, Norman, who was appointed to the post of vice-chief of defence staff last summer, was suspended but not stripped of his command.
National Defence remains silent

There has been no official explanation from National Defence for the unprecedented move.

No military commander in recent memory, at such a senior a level, has been told to relinquish his duties, according to several defence experts.

Officials in the chief of defence staff's office put out a statement characterizing Norman's removal as "temporary" and that his successor at the helm of the navy — Vice-Admiral Ron Lloyd — would step in on an interim basis and serve as vice-chief "effective immediately."

Under Defence Department procedures, Norman would have been given a letter detailing the allegations against him and he would have had 48 hours to respond.

The letter was apparently served to him Monday morning, but the internal directive ordering that he hand over his post was signed and dated on Friday.
Removal shocks colleagues

Sources say Norman was not in the office during the latter half of last week. The official explanation was that he was "working on a special project," but it is now believed that the crisis came to a head internally around that time.

His removal caught many at National Defence headquarters by surprise, with several key staff finding out news via media or social media.

Norman has a reputation as a no-nonsense straight-shooter.

He is overseeing an investigation into suicides and harassment at the Royal Military College in Kingston, Ont.

And in 2014, he led a crackdown on heavy drinking and partying by sailors during off-duty hours following a spate of embarrassing incidents.

Navy to blame for ship delay: ex-brass

By: Lee Berthiaume, Ottawa Citizen 

ADRIAN WYLD / THE CANADIAN PRESSRoyal Canadian Navy Vice-Admiral Mark Norman, left, speaks with Vice-Admiral Ron Lloyd during a change-of-command ceremony on Thursday.

OTTAWA • Vice-Admiral Mark Norman used his last speech as commander of the navy Thursday to lament a “completely avoidable” shortage of Canadian warships, while his successor said submarines are “essential” for the country’s defence.

The comments came during a ceremony that saw Norman relinquish command of the Royal Canadian Navy (RCN) to Vice-Admiral Ron Lloyd after three years at the helm. That period coincided with the retirement of a quarter of the navy’s major ships, none of which have been replaced.

Speaking to a crowd of military officers and defence officials that included Defence Minister Harjit Sajjan and defence chief Gen. Jonathan Vance, Norman said the navy had no choice but to retire its two resupply ships and two out of three destroyers before replacements were ready. (The last destroyer will retire next year.)

“The need to retire four of our ships before their replacements had arrived no doubt hurt us, both from a capacity and a capability standpoint,” he said. “This was out of necessity, and certainly not by design or intent.”

A modified civilian resupply ship is scheduled to enter service in fall 2017, which will help make the navy more self-sufficient. However, the first real replacement won’t be ready until 2019.


Meanwhile, with the destroyers all retired, the navy will have only 12 frigates capable of operating overseas until the mid-2020s.

“The fact (is) that the RCN has gotten notably smaller, both in terms of fleet and its establishment on my watch,” Norman said, which has resulted in “acute losses in warfighting capabilities.”

Rather than blame someone else for the problem, Norman said the navy’s inability and failure to make tough decisions are the reasons new resupply ships and warships won’t be ready for several more years.

“It’s important to keep in mind that the situation we had to manage was completely avoidable,” he said.

“It should act as a powerful reminder of what happens when we allow ourselves to continually manage risk by putting off tough decisions in the interests of short-term expediency.

Norman’s speech wasn’t all doom and gloom. Delays and criticisms aside, he said there are legitimate reasons to celebrate the federal shipbuilding plan, which promises to produce a state-ofthe-art navy as well as return Canada to being a worldclass shipbuilder.

He also noted the first Arctic patrol ships should be rolling off the line in the next year or so, and the navy has been using its coastal defence ships on anti-drug trafficking operations in the Caribbean and other places in the Western Hemisphere.

And he applauded the Liberal government for having stuck with the federal shipbuilding plan.

During his speech, Vance applauded Norman for having “made difficult decisions, tough decisions that will protect his sailors and the future of his fleet.”

He added he has “never been more hopeful for the future of the Royal Canadian Navy than I am today.”

Meanwhile, bubbling below the surface was the question of what to do about Canada’s four submarines. In an interview last week, Norman said the government has to decide in the next year or two whether to spend more money to keep the submarines running until the 2030s.

For his part, Vance applauded the “incredibly hard work” the navy has done in getting the subs up and running.

“And let me assure you, submarines are vital to those operational results,” he said.