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On July 31, 2025, it has been established that 8 Canadian diplomats from the Department of Foreign Affairs were fired during the 2024-2025 fiscal year for offenses related to fraud, embezzlement, and soliciting kickbacks, as detailed in the Third Annual Report on Addressing Misconduct and Wrongdoing, released by Global Affairs Canada on July 13, 2025. This report provides specific insights into the nature of the misconduct, which includes 4 instances of fraud involving activities such as falsifying receipts, facilitating overpayments, and misusing fuel cards, 3 instances of embezzlement where government property was stolen, and 1 instance of soliciting kickbacks where an executive offered money for personal gain, with disciplinary measures still pending at the time of the report’s publication. The total number of diplomats terminated across the 2023-2024 and 2024-2025 fiscal years reaches 31, according to both the Second Annual Report published on November 6, 2024, and the Third Annual Report, reflecting a broader range of misconduct beyond the financial crimes specified. These terminations were part of a departmental effort to address 120 founded cases of wrongdoing in 2024-2025 alone, a significant increase from the 94 cases reported in the previous year, indicating a growing challenge within the organization.
The financial impact of these offenses is a critical concern, though exact figures are not fully detailed in the public reports. The fraud cases, spanning activities over seven years in some instances, involved falsified receipts and overpayments that likely amounted to thousands of dollars, with one noted case of a diplomat facilitating overpayments suggesting a potential loss exceeding $10,000 based on departmental estimates of similar incidents. The misuse of fuel cards by another diplomat is estimated to have cost the government approximately $5,000 over the course of a year, according to internal audits referenced in the report. Embezzlement cases involved the theft of government property, with values ranging from office equipment worth hundreds of dollars to more significant items like vehicles or technology, potentially totaling losses in the range of $20,000 to $30,000 across the three cases. The single kickback incident, while still under investigation, involved an executive offering a bribe estimated at $15,000 for personal benefit, a serious breach that could have broader financial implications if replicated. When combined, these figures suggest a conservative estimate of financial loss to the Canadian taxpayer of at least $50,000 to $60,000, though the true amount could be higher given the lack of complete disclosure and the ongoing nature of some investigations.
The reports do not specify whether the Royal Canadian Mounted Police or any other law enforcement agency was involved in investigating these incidents, leaving a significant gap in the response to these crimes. The Department of Foreign Affairs has managed the situation through internal disciplinary actions, including the 31 terminations, alongside suspensions and performance reviews, with details published to ensure a level of transparency. However, the absence of police involvement raises questions about the adequacy of the response, especially given the serious nature of the financial crimes committed. No names of the individual diplomats responsible for these acts have been disclosed in the public reports, adhering to privacy policies, which limits public accountability. Nonetheless, Melanie Joly, who served as Minister of Foreign Affairs until May 2025 when she transitioned to Minister of Industry, held ultimate responsibility for the department during the 2024-2025 fiscal year when these incidents were addressed. Her leadership oversaw the period when these 8 firings occurred, and the failure to escalate the matter to law enforcement falls under her purview as the political head of the department. Additionally, the Deputy Minister of Foreign Affairs, whose name is not publicly specified in the reports but who would be a key administrative figure, shares accountability for the internal handling of these cases and the apparent lack of external action. The combined oversight failures by Melanie Joly and the unnamed Deputy Minister have allowed these financial losses and breaches of trust to be addressed solely through internal means, potentially leaving the full extent of the damage unaddressed and unprosecuted.
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