About half the money improperly billed by federal subcontractors identified in a 2024 investigation has been repaid, according to a Department of Public Works briefing note.
Blacklock's Reporter says managers said seven suppliers referred to the RCMP agreed to pay the balance but provided no timeline.
“The Government of Canada is pursuing its efforts to investigate and deter fraudulent billing by subcontractors,” said the November 7 note Fraudulent Billing. It did not elaborate.
“All companies from the cases disclosed have been asked to repay,” wrote managers. “Discussions with the companies are ongoing.”
“As of November 1 firms impacted by the cases disclosed have agreed to repay almost $800,000, of which $420,000 has been repaid and $380,000 is in the process of being repaid,” said Fraudulent Billing. “We continue to make steady progress in this regard.”
MPs have struggled to determine the full extent of fraudulent billing. A 2024 federal estimate put losses at nearly $5 million, often due to subcontractors falsifying timesheets while charging by the hour.
Public Works Minister Jean-Yves Duclos on March 20 described the scheme. “We need to do better when it comes to ensuring the integrity and reputation of our procurement system,” said Duclos.
“Fraud undermines our ability to ensure value for money on behalf of Canadians,” said Duclos. “Departments will continue to proactively detect and investigate all suspicions of fraud.”
“How concerned are you this could be a widespread problem?” a reporter asked. “This is a troubling outcome, something you never want to see,” Duclos responded.
“It has impacted dozens of departments,” said Duclos. “The overbilling was made in a manner that took advantage of the fact that until recently, when everything was done on paper, it was difficult for departments to coordinate and share that information.”
“Has anyone lost their job over this?” a reporter asked. “The internal investigation is ongoing,” replied Duclos. “Until now there has not been any sign this was due to mismanagement in the federal government.”
Another “five to 10 more cases” remain under investigation, said Duclos. The Department of Public Works stated that all cases involved falsified timesheets for multiple billing.
“Individuals submitted timesheets and billed multiple departments under separate contracts,” said Duclos’ department. “This was detected as a result of the department’s ongoing efforts to strengthen its approach to detecting fraudulent activities.”
“These illegitimate payments are estimated to total nearly $5 million,” wrote the department. “This is the first wave of fraudulent billing cases the department has identified, with more expected to be announced in the coming months.”