Question Period Note: Overbilling

In a recent case, Public Services and Procurement Canada (PSPC) conducted an investigation, which revealed that from January 1, 2020, to June 30, 2021, a sub-contracted private sector consultant worked for multiple Government of Canada departments and agencies, through eight different contracted private sector companies. The consultant submitted falsified timesheets which resulted in the Government of Canada being overbilled [Redacted].

• The Government is committed to its obligations to the Canadian tax payer. It takes matters of fraud seriously and has a framework of laws, regulations and policies in place to protect the integrity of the federal procurement system
  • When Public Services and Procurement Canada becomes aware of an allegation of fraud, it immediately launches an investigation and takes the necessary action to mitigate risks associated with those responsible
  • In fraud cases involving overbilling by contractors PSPC works with the impacted government departments and contacts the companies involved to recover the funds that were fraudulently claimed
  • The case has also been referred to the Royal Canadian Mounted Police, and we will continue to cooperate with authorities on this matter
  • Cases of this nature are also referred to the Royal Canadian Mounted Police or the law enforcement agency of jurisdiction for their consideration in launching a criminal investigation
  • If a criminal investigation is launched by the police, PSPC will continue to cooperate with authorities and provide whatever assistance is needed

If pressed on whether PSPC has the capability of detecting this type of fraud:

• The Government of Canada has the authority to recover the funds in accordance with the terms and conditions of the contracts
• We continually strive to improve our procurement management system to better detect potentially fraudulent billing

A recent investigation conducted by PSPC found that, from January 1, 2020, to June 30, 2021, an individual undertook contract work with eight Government of Canada departments and agencies, through eight different contracted companies.

The individual overbilled the Government of Canada by submitting timesheets showing double, triple, quadruple and quintuple billing on certain days under these separate contracts. The investigation revealed that this individual overbilled an estimated [Redacted] to the Government of Canada.

The security status and clearance of the individual remains suspended pending the completion of the review for cause process, which will determine if revocation of the security status and clearance is warranted. This process is in progress as part of the Contract Security Program at PSPC.

Restitution is being sought by impacted Government department and agencies and the matter of fraud has been referred to the RCMP, [Redacted].

None