The RCMP has charged a consultant with fraud after an investigation related to overbilling the federal government.
Andrew McDermott, 62, of Ottawa and his company, AM Government Consulting Inc., face two counts of fraud over $5,000.
The charges have not been tested in court.
In a news release, the police force said the charges follow an initial investigation by Public Services and Procurement Canada that began in 2021.
The government department investigated a consultant who allegedly worked concurrently on multiple Shared Services Canada contracts held by multiple different private-sector contractors.
Evidence indicated that the consultant had submitted fraudulent timesheets that resulted in overbilling between May, 2020, and June, 2022, the news release said. The case was then referred to police.
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The RCMP’s Sensitive and International Investigations Unit opened a probe after it was “determined that the consultant may have been fraudulently overbilling.”
The RCMP said investigators obtained statements from prime contractors while examining timesheets to “confirm that the consultant had overbilled the Government of Canada on separate contracts.” The RCMP also said it uncovered that while he was collecting HST, the contractor failed to pay his remittance to the Canada Revenue Agency.
“This investigation is a great example of collaboration between the RCMP and PSPC. It demonstrates that we are committed to keeping our nation safe, by protecting the integrity of the federal government and preventing the abuse of taxpayers’ dollars,” RCMP Superintendent Jeremie Landry said in a statement.
The Globe and Mail called a cellphone number for Mr. McDermott that appears on corporate records and left a message Thursday afternoon requesting comment in response to the charges. He did not immediately respond.
In a separate news release, PSPC said the charges are in connection to its March 20, 2024, announcement that a review had found nearly $5-million in fraudulent billing tied to three subcontractors.
That announcement was made at a news conference by the then-ministers of Public Services and Procurement and Treasury Board, Jean-Yves Duclos and Anita Anand.
PSPC said Thursday that none of the three subcontractors currently hold security status.
The 2024 news conference took place at a time of heightened public and parliamentary scrutiny of federal contracting practices driven by controversy over the cost of the ArriveCan app for cross-border travellers.
Independent reviews by the Auditor-General and the Procurement Ombud raised broader concerns about a lack of oversight and scrutiny related to how federal departments award billions of dollars each year in federal contracting work.
The reviews highlighted issues related to a lack of oversight of subcontractors who work for companies hired by departments as the main, or “prime,” contractor for specific projects or assignments.
Federal officials have said that none of the three subcontractors referenced in the 2024 announcement are connected to the ArriveCan app project.
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The government has suspended three of the main ArriveCan contractors from further federal outsourcing work.
The RCMP has said it is investigating allegations related to ArriveCan.
In a statement to The Globe this week, the RCMP said that work related to ArriveCan continues.
“If charges are laid, the RCMP will announce them publicly,” the force said in an e-mail.
With reports from Stephanie Chambers