Ottawa suspects 3 IT subcontractors of fraud

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The RCMP will look into the files submitted to it by the government.

Radio-Canada

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The Royal Canadian Mounted Police (RCMP) are investigating alleged cases of fraud allegedly committed by three subcontractors who won contracts with the federal government.

According to information presented by the Minister of Public Services and Procurement of Canada, Jean-Yves Duclos, the subcontractors in question are said to have fraudulently invoiced approximately $5 million in fees to several ministries and organizations between 2018 and 2022.

These private information technology entrepreneurs, whose identities have not been revealed to protect the ;integrity of the investigation, would have billed hours to several ministries at the same time for the same work.

Around forty departments were thus cheated, according to the internal investigation carried out by Public Services and Procurement Canada, which transferred the file to the RCMP.

If the suspicions prove to be founded, around ten other files of this type could be transferred to the federal police.

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These investigations have nothing to do with the ArriveCAN application file or the subcontractor GC Strategies.

Minister Duclos said the Trudeau government has created a new supplier integrity and compliance office to to prevent similar situations from recurring.

He added that the government would now require full transparency from its suppliers regarding their use of subcontractors and their pricing.

With information from The Canadian Press