Federal Government Sues IT Subcontractor for Alleged Fraud in $1.6 Million Lawsuit

by Olawunmi Sola-Otegbade
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Federal Government Sues IT Subcontractor for Alleged Fraud in $1.6 Million Lawsuit

The federal government has filed a lawsuit against an Ottawa-based IT subcontractor and seven companies over alleged fraudulent billing practices. Court documents claim the contractor billed the government for hours he did not work, amounting to “unjust enrichment.”

The lawsuit alleges the contractor submitted overlapping timesheets across multiple contracts, with some days totaling over 24 hours of billed work. According to Public Services and Procurement Canada (PSPC), the contractor admitted to charging for “standby time” but provided no evidence of such claims in his timesheets.

The companies involved are accused of failing to verify the contractor’s hours, leading to breaches of contract. The government seeks $1.6 million in damages, including $198,000 from GC Strategies, one of the firms named in the case. GC Strategies was previously involved in the ArriveCan app project, which has been under intense scrutiny following a damning auditor general report on procurement practices.

The allegations remain unproven, and the contractor has yet to file a defense.

Source: Swifteradio.com

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