Fraud charges against a federal contractor accused of embezzling $250,000 are only the tip of the iceberg, according to a Department of Public Works manager. Blacklock's Reporter says MPs were informed that the suspected theft could involve millions of dollars.“No department is entirely safe from this type of fraud,” testified Catherine Poulin, assistant deputy public works minister, at the Commons government operations committee. The charges filed on July 9 against Ottawa contractor Clara Visser were “the first case of fraudulent overbilling we referred to the RCMP,” Poulin said. “In 2023, we referred three further cases.”When asked by Conservative MP Michael Barrett (Leeds-Grenville, Ont.) about the total value of the suspected fraud, Poulin responded, “It would be very difficult for me to estimate a total sum. The very nature of fraud is to evade detection, to be secretive. Without looking through the cases one by one, it would be very difficult.”Visser, 63, was charged with overbilling $250,000 on federal contracts over an 18-month period. She “undertook contract work with eight separate departments and Crown corporations,” according to police, who said, “Evidence indicated the consultant submitted fraudulent timesheets.”Barrett highlighted the broader issue of oversight, questioning the effectiveness of federal consultants that cost taxpayers $21.6 billion a year. “Are Canadians getting more services for it?” Barrett asked. “What has been the increased benefit to Canadians from the $21 billion?”Barrett pressed further, stating, “Is it not true at this very minute there are middle men just soaking Canadian taxpayers, more examples of people like Clara Visser who are perpetrating fraud on the government, picking Canadians’ pockets? Maybe the minister doesn’t know.”“We know what it’s like for the scammers and the fraudsters who are stealing from Canadians,” Barrett continued. “We know what the benefit is for them. No one was holding them accountable. Imagine the delight, imagine the joy on the faces of the grifters, the thieves who have been perpetrating their crimes against Canadians.”Barrett inquired about the number of fraud cases referred to the RCMP, emphasizing, “There is nothing political about that. Canadians have a right to know and an interest in knowing the volume of fraud that is being perpetrated on the government.”Public Works Minister Jean-Yves Duclos told reporters on March 20 that he was aware of approximately $5 million stolen through double-billing by federal subcontractors over a four-year period. “We need to do better when it comes to ensuring the integrity and reputation of our procurement system,” said Duclos. “Fraud undermines our ability to ensure value for money on behalf of Canadians. Departments will continue to proactively detect and investigate all suspicions of fraud.”Fraudulent billings worth about $5 million involving three IT subcontractors were referred to the RCMP, according to Duclos. Another “five to ten more cases” are under investigation, although none of the companies were identified.
Fraud charges against a federal contractor accused of embezzling $250,000 are only the tip of the iceberg, according to a Department of Public Works manager. Blacklock's Reporter says MPs were informed that the suspected theft could involve millions of dollars.“No department is entirely safe from this type of fraud,” testified Catherine Poulin, assistant deputy public works minister, at the Commons government operations committee. The charges filed on July 9 against Ottawa contractor Clara Visser were “the first case of fraudulent overbilling we referred to the RCMP,” Poulin said. “In 2023, we referred three further cases.”When asked by Conservative MP Michael Barrett (Leeds-Grenville, Ont.) about the total value of the suspected fraud, Poulin responded, “It would be very difficult for me to estimate a total sum. The very nature of fraud is to evade detection, to be secretive. Without looking through the cases one by one, it would be very difficult.”Visser, 63, was charged with overbilling $250,000 on federal contracts over an 18-month period. She “undertook contract work with eight separate departments and Crown corporations,” according to police, who said, “Evidence indicated the consultant submitted fraudulent timesheets.”Barrett highlighted the broader issue of oversight, questioning the effectiveness of federal consultants that cost taxpayers $21.6 billion a year. “Are Canadians getting more services for it?” Barrett asked. “What has been the increased benefit to Canadians from the $21 billion?”Barrett pressed further, stating, “Is it not true at this very minute there are middle men just soaking Canadian taxpayers, more examples of people like Clara Visser who are perpetrating fraud on the government, picking Canadians’ pockets? Maybe the minister doesn’t know.”“We know what it’s like for the scammers and the fraudsters who are stealing from Canadians,” Barrett continued. “We know what the benefit is for them. No one was holding them accountable. Imagine the delight, imagine the joy on the faces of the grifters, the thieves who have been perpetrating their crimes against Canadians.”Barrett inquired about the number of fraud cases referred to the RCMP, emphasizing, “There is nothing political about that. Canadians have a right to know and an interest in knowing the volume of fraud that is being perpetrated on the government.”Public Works Minister Jean-Yves Duclos told reporters on March 20 that he was aware of approximately $5 million stolen through double-billing by federal subcontractors over a four-year period. “We need to do better when it comes to ensuring the integrity and reputation of our procurement system,” said Duclos. “Fraud undermines our ability to ensure value for money on behalf of Canadians. Departments will continue to proactively detect and investigate all suspicions of fraud.”Fraudulent billings worth about $5 million involving three IT subcontractors were referred to the RCMP, according to Duclos. Another “five to ten more cases” are under investigation, although none of the companies were identified.
