OTTAWA — The Liberal government is set to overhaul the nation’s long-maligned military acquisition system by transforming the Defence Investment Agency (DIA) into a stand-alone Crown corporation, according to two federal sources familiar with the plan.
The shift marks a bold attempt to bypass the rigid, decades-old federal procurement bureaucracy by managing military purchases more like a specialized commercial enterprise. The sources, who were not authorized to speak on the record, indicated that the proposed Crown corporation would report to an associate minister of defence to ensure public accountability while retaining the autonomy necessary for rapid decision-making.
The DIA was established just over a year ago as a special agency under the umbrella of Public Services and Procurement Canada. While legislation to grant the agency broader powers has been stalled in the House of Commons since the spring, Public Works Minister Joël Lightbound is now poised to introduce new legislation to elevate the agency to Crown status.
Defence policy experts suggest the move could be a game-changer. Philippe Lagassé, a professor at Carleton University, noted that operating as a Crown corporation would allow the agency to circumvent the heavy oversight of central bodies like the Treasury Board.
“A Crown corporation could reduce the bureaucratic processes involved with multiple departments,” Lagassé said. “It could slim down the number of actors involved, much like how Defence Construction Canada functions. However, that also means that fewer ministers would have their say over major projects involving large amounts of taxpayer money.”
For the Canadian Armed Forces, the promise is clear: equipment could arrive faster. Yet, the transition raises significant questions regarding oversight. Because Crown corporations operate at a distance from the direct control of the federal cabinet, transparency may become a central point of contention.
“There might be less internal oversight, but that remains one of the main obstacles involved in speeding up the process,” Lagassé added. “Ministers would still have to answer for the corporation’s activities in Parliament, but they would not be as directly accountable and could use that to deflect difficult questions.”
Speeding up procurement was a cornerstone campaign promise for Prime Minister Mark Carney during the 2025 election. The initial DIA proposal introduced earlier this year already aimed to grant the agency sweeping powers, including up to 14 exceptions to standard procurement rules, such as prioritizing economic security and projects of national interest. It remains to be seen whether the transition to a Crown corporation will expand those authorities even further.
As the government prepares to shift its strategy, the focus will turn to the legislative details. Defence Minister David McGuinty and Secretary of State for Defence Procurement Stephen Fuhr are scheduled to address the media on Tuesday, where they are expected to face intense questioning over how the new agency will balance military requirements with corporate efficiency and the need for public transparency.
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