(Ottawa) Three information technology subcontractors allegedly fraudulently invoiced the federal government for work carried out between 2018 and 2022. The fraud, which amounts to 5 million, affects numerous departments and agencies, revealed the ministry of Public Services and Procurement on Wednesday.
These individuals essentially billed multiple departments for the same hours for the same work under their contracts. The work had been subcontracted to them by suppliers, but would not be linked to the application ArriveCAN.
The security clearance of these subcontractors was suspended and the matter was transferred to the RCMP. Their names have not been released to protect the investigation. The ministry is now trying to recover the amounts.
Large-scale data analysis was used to uncover this fraud. This is the first wave of fraudulent billing cases and the department expects to uncover additional cases in the coming months.
The financial fiasco surrounding the application ArriveCAN has uncovered certain questionable practices on the part of companies specializing in the recruitment of personnel specialized in information technology. Two companies GC Strategies and Dalian Enterprises inc. lost their security clearance.
Further details will follow.