Fraud charges have been brought against a federal contractor for allegedly embezzling $250,000, with more cases being referred to the RCMP, according to a manager at the Department of Public Works who testified before the government operations committee on July 23.
The charges filed on July 9 against an Ottawa contractor represent “the first case of fraudulent overbilling we referred to the RCMP,” Ms. Poulin stated, noting that three other cases have also been forwarded to the RCMP.
During the committee meeting, Conservative MP Michael Barrett inquired about the total value of suspected fraud within the government.
Ms. Poulin responded, “It would be very difficult for me to estimate a total sum. The very nature of fraud is to evade detection and be secretive. Without reviewing each case individually, it would be challenging.”
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Mr. Barrett expressed concerns that the fraud charges and police investigations suggest a lack of federal oversight over consultants.
In March, Public Works Minister Jean-Yves Duclos revealed that the procurement department had referred three cases of suspected fraudulent subcontractor invoicing to the RCMP, with efforts underway to recover around $5 million in funds.
Mr. Duclos emphasized, “These fraudulent billing cases are unacceptable. Rules are in place to ensure that taxpayer dollars are protected, and systems must be implemented to ensure compliance with these rules. Fraud jeopardizes our ability to provide value for money on behalf of Canadians. The department will continue to actively identify and investigate all suspicions of fraud.”
Through an investigation, Public Services and Procurement Canada discovered that three subcontractors were fraudulently billing 36 different government departments for work completed during the same timeframe. The investigation by PSPC focused on billing irregularities between 2018 and 2022.
