Update on fraudulent overbilling cases

Public Services and Procurement Canada (PSPC) has a framework in place to protect against wrongdoing and 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.

As a result of the department’s administrative investigations, as of November 6, 2024, PSPC has now referred a total of seven cases to the Royal Canadian Mounted Police (RCMP) for criminal investigation. This includes three new cases that were recently referred.

The new referrals follow the March 20 announcement that PSPC had detected and referred to the RCMP three fraudulent billing schemes undertaken by subcontractors (individuals) working on federal contracts awarded to prime contractors (suppliers).  Following that, on July 9, 2024, the RCMP charged a professional services subcontractor for fraudulent billing. These ongoing investigations demonstrate that the government will not tolerate illegal activities and will continue to bring fraudulent billing schemes to justice.

In order to protect the integrity of ongoing investigations, and legal matters before the courts, further details on any of the referred cases cannot be provided at this time.

PSPC has effective methods to detect and respond to instances of fraudulent activity. We will continue to refine and expand the use of our tools, including data analytics, to better detect and address wrongdoing, and to ensure that individuals or entities engaging in fraud or other illegal activities are held accountable for their misconduct, while seeking restitution to the Crown. PSPC is actively pursuing the recovery of illegitimate amounts billed to the Government of Canada and the department has asked companies involved to repay those amounts.

We encourage anyone who suspects illegal, illicit or unethical activities in Government of Canada contracting to report these activities directly to our Special Investigations and Internal Disclosure Directorate, at spac.dgsdivulgationinterne-dobinternaldisclosure.pspc@tpsgc-pwgsc.gc.ca, or to the Federal Contracting Fraud Tip Line.

Read more about the RCMP investigation into fraudulent billing of the federal government and about Government actions against fraud and strengthening financial and procurement management