OTTAWA — Canada’s federal procurement department says it has referred three cases of suspected invoicing fraud by IT sub-contractors to police. 

Procurement Minister Jean-Yves Duclos says a recent review uncovered fraudulent billing schemes that were being used between 2018 and 2022. 

Duclos says the department has revoked the security clearance of those contractors and is taking action to recover an estimated $5 million. 

The government is not naming the individuals involved to protect the integrity of the RCMP investigation. 

Duclos also says the government is creating a new office of supplier integrity and compliance. 

He also says the government will now require full transparency from suppliers about their use of sub-contractors and pricing.

This report by The Canadian Press was first published March 20, 2024.

The Canadian Press