The Influence of Gangs on Canada’s Public Sector Agencies: Federal Report

Hell's Angel's gangs, widely recognized as an outlaw motorcycle gang, have moved steadily to find legitimate business activities in Canada. Pictured are gang members in England. Christopher Furlong/Getty Images

Almost 30 organized crime groups have “influence or access within Canadian public sector agencies or departments primarily at the local or regional levels,” according to a federal report.

The level of infiltration into the public sector is “unknown” for more than 400 other organized crime groups, according to the Public Report on Organized Crime in Canada for 2022, first covered by Blacklock’s Reporter.

This infiltration can take many forms. They include “bribery, embezzlement, money laundering, interfering with investigations and fixing trials to avoid convictions, and hiding links between the government, the justice system, and organized crime,” said the Organized Crime report from 2020, which describes the infiltration in more detail than the current report.

“Organized crime infiltration in law enforcement, including correctional services and border services, can help facilitate illegal activities such as smuggling drugs, firearms, and contraband, and poses a high risk to maintaining a lawful and democratic society,” it said.

Costs to Taxpayers

Infiltration costs taxpayers a lot, the reports say. Local and regional government contracts are susceptible to infiltration. Public resources are thus misallocated, and project costs can increase up to 50 percent.

Contracts in Quebec’s construction industry were hard hit in 2019, with a rise in costs across the industry of 30 percent due to corruption, according to the Charbonneau Commission charged with investigating the matter. The commission’s investigation led to the resignation of three mayors in the province and prompted hundreds of criminal charges.

As of the 2022 assessment, Canada had 30 Mafia networks based mainly in Toronto, Hamilton, and Montreal. More than 130 street gangs “continue to be the most violent subset of organized crime groups,” and are based mostly in British Columbia, Toronto, and Montreal.

Drug smuggling groups numbering about 350 are based mainly in British Columbia and Ontario. “For the first time organized crime groups in Atlantic Canada are reported to be involved in fentanyl distribution,” said the report.

Organized criminal groups are also well-connected in the private sector, with 41 percent of the groups assessed having links to a combined 1,682 businesses. The nature of the businesses vary, including food and beverage, retail, transportation and warehousing (which often facilitates drug smuggling), construction, and even insurance.