Canadian government fails to check suppliers are billing accurately

The Canadian Federal Government pays $9 billion in bills every year for goods and services without using its right to check suppliers' records to ensure they don't overcharge. A study by Canada's procurement ombudsman shows departments aren't invoking the standard clause in all contracts, which gives the government the right to inspect, review or audit suppliers' books. The threat of its use is a powerful deterrent, but only if the government actually uses it once in a while, says Procurement Ombudsman Shahid Minto.

Departments say they rely on their own internal controls and procedures to spot problems. Chief financial officers are also supposed to scrutinize invoices and other supporting documents in contract files. But the failure to verify prices is an issue that's been spotlighted by a parade of studies and auditor general reports over the years.

Read more here