The Procurement Ombud has identified a sweeping failure by the federal government to enforce its own rules in preventing abuse in an Indigenous business contracting program – and says Ottawa is being disingenuous in boasting about how much work it directs to such ventures.

In a report released Thursday, Procurement Ombud Alexander Jeglic said a review of the Procurement Strategy for Indigenous Business found widespread problems with federal oversight of the program, which is meant to benefit Indigenous entrepreneurs.

The PSIB is a 30-year-old program that is part of a broader and more recent federal government pledge to award 5 per cent of federal contracts to Indigenous businesses. Ottawa says this works out to more than $1.6-billion in contract work.

Mr. Jeglic criticized “the disingenuousness” of the five-per-cent figure, which he said is overstated because it includes work that is subcontracted to non-Indigenous companies.