There’s a new development in the story of the Royal Bank of Canada outsourcing dozens of Toronto jobs.

The federal government has announced that it is investigating the external contractor being used by the Bank.

A spokeswoman for Human Resources Minister Diane Finley  says officials are reviewing application documents submitted by i-Gate the multinational company which has brought in peopl to provide certain technical services for RBC.

Alyson Queen  says the investigation is based on apparent discrepancies   public statements by RBC and information which had previously been provided to the government by i-Gate.

Gord Nixon is RBC president and chief executive officer.

He says the bank has not broken any rules.

RBC has said it has not hired temporary foreign workers to take over the duties of current employees.