Citing concerns for national security, Canada orders the dissolution of two businesses

Citing concerns for national security, Canada orders the dissolution of two businesses

The companies, Bluvec Technologies Inc. and Pegauni Technology Inc., were given the dissolution order and told to cease all operations in the country on grounds of national security.

Canada ordered on Friday the closure of the operations of two technology companies operating in the nation, citing concerns for national security.

According to a statement from the innovation ministry, the businesses, Bluvec Technologies Inc. and Pegauni Technology Inc., were granted the dissolution order and instructed to stop all operations in the nation under legislation that controls foreign investments in Canada.

Innovation Minister Francois-Philippe Champagne said in a statement that the decision was made following a review that entailed “rigorous scrutiny by Canada’s national security and intelligence community.”.

“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” Champagne stated.

The notification only included the names of the companies; it had no information about the investments, security issues, or other facts. A request for further information late on Friday was not immediately answered by a spokesman for the Ministry of Innovation.

Bluvec Technologies is a manufacturer of drone-detecting equipment, according to their website. It was not possible to visit the Pegauni Technologies website. According to a LinkedIn account, the business produces wireless security goods.

Claire, the person who answered the general number posted on Bluvec’s website when called, said the company was doing checks and hadn’t received any orders from the government.

The Investment Canada Act, which governs foreign investments, was updated earlier this year to include more stringent national security assessments of proposed foreign investments.

The law applies to foreigners who desire to start a new business in Canada or who take over an existing Canadian company.

Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity

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