Federal officials at Wednesday's Commons public accounts committee disclosed that $4.5 million in fraudulent activities have been uncovered since 2022.

Despite these findings, only $400,000 has been successfully recovered through negotiations, raising questions about the effectiveness of the government’s recovery efforts or will to hold fraudsters accountable. 

Deputy Public Works Minister Arianne Reza informed the Commons public accounts committee that the government identified seven cases of fraud through enhanced data analytics. “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,” Reza said. 

While $800,000 has been negotiated for recovery, only half that amount has been returned to government coffers so far.

Reza noted that these fraudulent activities typically involved subcontractors who falsified time sheets and inflated invoices. 

All seven cases have been referred to the RCMP for investigation. Catherine Poulin, assistant deputy minister, confirmed that three of the cases were referred to law enforcement in October, marking what she called the “second wave” of fraudulent billing cases.

Conservative MPs voiced concerns over the limited financial recovery. MP Garnett Genuis (Sherwood Park-Fort Saskatchewan, Alta.) asked, “How much has the government lost as a result of contracting fraud?” 

Reza did not provide a full estimate but committed to coming back with an answer. The Department of Public Works initially estimated overall losses at $5 million.

MP Larry Brock (Brantford-Brant, Ont.) questioned whether further cases were expected, to which Reza affirmed that investigations are ongoing. “It is something that is going to be ongoing,” she stated, assuring that efforts will continue to inform the public and parliament.

Three of the implicated contractors—Eagle Professional Services, IPSS Cyber Solutions, and Veritaaq Technology House, all based in Ottawa—have been publicly identified.

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