The Canadian Auditor General has released a damning report on the government's 2010 decision to select the F-35 as the CF-18 replacement.
What appears to have happened is that before the July 2010 F-35 announcement by the current government, there was a DND estimate that the F-35 program would cost $25B (including 20 years of maintenance) if Canada went through with it.
After the government announced the decision for the F-35, the $16B figure was claimed by the DND (and even published on their website). In 2011, the DND stated $14.7B in response to a report done by the Parliamentary Budget Officer, Kevin Page.
The report by Page was much higher than any DND estimate and was attacked by the F-35 fan-base. As it turns out--given the huge cost rise in the F-35 program--Page is probably closer on the numbers. The AG agrees.
The current government's defense is,"we haven't signed a contract yet!". True. It is the untruthful language leading up to that decision that is the problem.
Parliament will likely respond to this fraud by pulling DND's authority to procure a CF-18 replacement. A good move because DND has proven they can't be trusted with what could be the most expensive Canadian military procurement in history. DND (and the current government) went native to Lockheed Martin fairy tales. What happens to the careers of people involved in this lie to parliament is yet to be seen.
*** UPDATE- Alan Williams has some good comments in this CBC video.