A parliamentary committee has heard stunning allegations of fraud, abuse and a coverup at senior levels in the RCMP from those who wear the uniform.

Appearing before MPs on the public accounts committee Wednesday, several serving and retired RCMP officers delivered a scathing indictment of their leadership over the handling of fraud and abuse allegations involving the Mounties' pension and insurance plans in 2002.

RCMP Chief Supt. Fraser Macaulay was among several officers who levelled accusations Wednesday during a parliamentary committee hearing.
(CBC)

"The RCMP has had a small group of managers who through their actions and inactions are responsible for serious breaches in our core values, the RCMP code of conduct and even the Criminal Code," Chief Supt. Fraser Macaulay told the committee.

A criminal investigation was launched and then cancelled just two days later by former RCMP commissioner Giuliano Zaccardelli.

Zaccardelli, who resigned in December after admitting he gave incorrect testimony to another parliamentary committee involving the Maher Arar affair, ordered an internal audit instead.

Five months later, the criminal investigation resumed, this time conducted by the Ottawa Police Service. It confirmed serious cases of nepotism and wasteful spending.

The findings got the attention of Auditor General Sheila Fraser, who launched her own investigation and found millions of dollars in inappropriate charges to the pension and insurance plans.

"Every core value and rule of ethical conduct that I held to be true and dear as a rank-and-file member of the RCMP has been decimated and defiled by employees at the highest levels of the RCMP," Sgt. Steve Walker told the committee Wednesday.

The RCMP has largely reimbursed the funds.

'I was on an island by myself'

The officers testified that they felt stonewalled by more than one senior executive when they tried to raise the issues with the leadership.

Macaulay said he was told "I was on an island by myself."

Now-retired staff sergeant Ron Lewis alleged his own queries were being blocked by the man who held the top job.

"I was met with inaction, delays, roadblocks, obstruction and lies," Lewis told the committee, alleging that "the person who orchestrated most of this coverup was Commissioner Zaccardelli."

Members of the committee expressed their shock over the allegations.

"I'm a lawyer and I think a lot of the stuff I've heard, you know, if it was anyone else, they'd be in criminal court.… Some of them may have been packing their toothbrushes for the crowbar hotel visit," Conservative MP Brian Fitzpatrick said.

"It's like Watergate," Liberal MP Shawn Murphy said. "The coverup is worse than the crime."

Barb George, the RCMP's deputy commissioner in charge of human resources, has stepped down from the position, but remains a member of the force, CBC News has learned.

The public accounts committee is holding an emergency meeting Thursday about Wednesday's testimony, and is considering summoning senior RCMP executives —including Zaccardelli himself — to testify.

An MP on the committee told CBC News that the Liberals will call for a public inquiry.