Overbilling On Federal Contracts 24 April

Public Services and Procurement Canada

Gatineau, Quebec

Public Services and Procurement Canada (PSPC) has a strong framework in place to protect against wrongdoing and to safeguard the integrity of the federal procurement system. This includes taking action in response to allegations that the Government of Canada is being overbilled or defrauded in either a specific contract or on a broader scale.

On March 20, 2024, PSPC announced that its investigations found that three subcontractors were suspected of fraudulently billing on contract work across a number of separate federal departments, agencies and Crown corporations. PSPC took immediate action to suspend the security status of the three subcontractors in question, and none currently hold security credentials with PSPC.

Following administrative investigations, the department referred the three suspected cases to the Royal Canadian Mounted Police (RCMP). Today, the RCMP announced that it has laid charges against one of these subcontractors.

PSPC is pleased that the RCMP chose to pursue this investigation. Today's announcement indicates that PSPC is committed to ensuring the continued integrity of Canada's federal procurement system.

As this legal matter is before the courts, PSPC will not provide additional details at this time.

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