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Canada considers adopting a False Claims Act

Conservative members of Canada’s Parliament are considering a law based on the United States’ False Claims Act. The U.S. law allows a whistleblowers who suspects fraud against the government to file a lawsuit against the defrauding company in his name and on behalf of the government. The claim is filed in secret in court and the government, after reviewing the evidence, has the option of joining the case as co-plaintiff. If not, the whistleblower can proceed alone. If the suit is successful, the whistleblower may receive up to 30 percent of the recovery.

Conservative MP Pierre Poilievre said, “In the U.S., there is a growing sector of entrepreneurial waste-busters who see it in their self-interest to scrutinize all aspects of government spending to root out fraud and waste. That’s a very good thing.” He will be meeting with U.S. legislators to see about adapting the law for Canada.

For more details, see the Ottawa Citizen of March 13, 2006.

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