Federal Public Works officials fielded hundreds of fraud complaints last year after launching awareness campaigns aimed at contractors and subcontractors, according to newly released records tabled at a Commons committee.In a report to the government operations committee, the department said two fraud awareness initiatives triggered 364 calls to a federal contracting fraud tip line, alongside dozens of disciplinary actions against employees and suppliers.“Continued implementation of a Fraud Risk Management Framework resulted in two fraud awareness campaigns,” the department wrote in its response to MPs. “As a result, 364 tips were received via a federal contracting fraud tip line.”Blacklock's Reporter said internal enforcement led to discipline against 84 employees for misconduct, ranging from verbal reprimands to dismissal. Nine employees were terminated outright.The department said it also conducted nine investigations tied directly to subcontractor overbilling, reviewing hundreds of pages of contracts, invoices, and timesheets. Four overbilling cases were finalized, while restitution support was provided for three previously closed files..A newly created restitution unit has recovered roughly $4 million to date, though the report did not disclose how much money may have been lost permanently.Screening of contractors and subcontractors resulted in seven administrative actions, including suspensions and declarations of ineligibility to bid on or hold federal contracts or real property agreements.The enforcement push followed a 2024 disclosure of a double-billing scheme involving falsified timesheets by subcontractors working across multiple departments. At the time, then–Public Works Minister Jean-Yves Duclos said the findings raised serious concerns.“Fraud undermines our ability to ensure value for money on behalf of Canadians,” Duclos said, adding departments would continue proactive investigations into suspected wrongdoing.Asked whether the issue could be widespread, Duclos acknowledged the seriousness of the problem. “This is a troubling outcome, something you never want to see,” he said, noting the scheme affected dozens of departments and exploited weaknesses in paper-based systems that made coordination difficult..Deputy Minister Arianne Reza later told the Commons public accounts committee it would be unrealistic to expect fraud probes not to uncover criminal activity. “It would be inconceivable” not to find it, she said.Over a two-year period, seven contractors were referred to the RCMP. Reza said investigators expect more cases to emerge. “It would be inconceivable to me not to think we are going to continue to do this type of work and continue to uncover overbilling,” she told MPs.
