Wait a minute! They don't need passports since they are not accompanying you.
From OP Manual 2
5.10. Non-accompanying family members
Applicants must declare all family members when applying for a visa and must again declare all
family members, whether accompanying or not, prior to obtaining permanent resident
status. Permanent residents who did not declare all their family members on their application are
reportable under A44(1) [see also “Sponsor who may be subject to an A44(1) report” (section 10.5
below) and “Misrepresentation” (section 5.22 below)]. In addition, all family members, whether
accompanying or not, must be examined, unless the appropriate officer determines that they are
not required by the Act or the former Act to examine the family member [R117(10)]. Family
members who were not declared and examined are excluded from the family class and may not
be sponsored at a later date as per R117(9)(d) unless R117(10) applies.
Non-accompanying family members must undergo medical examinations. They must also
establish that they are not inadmissible for criminal or security reasons. If the requirement for
minimum necessary income is applicable, sponsors must demonstrate that they can support all
family members, including non-accompanying family members.
Non-accompanying family members need not be in possession of a passport or travel document.
And this is from the DMP handbook:
2.2 The photograph of the applicant attached to the IMM 1017 or IMM 1017 EDE-EFE must match that on the government-issued photo-identity document, such as a passport or national identity card, and the appearance of the person attending for the IME. Discrepancies should be brought to the attention of the regional medical officer.
•When a passport is not available, only an original national identity document incorporating a current photograph, full name, date of birth and signature can be substituted. The national identity card should have been issued within the last 10 years. Only original identity documents should be used.
• Photocopies (certified or not certified) of passport or national identity documents are not acceptable.
Once the applicant’s identity is confirmed, the photograph is to be stamped in the right corner by the DMP with the DMP stamp as acknowledgement and confirmation of identification of the applicant.
So there may be a way around this for the medical examination. Call a DMP and ask them what they will accept. A birth certificate and school ID? I don't know how old your children are but maybe they have drivers licenses? You CAN ask CIC what to do as well by advising them honestly of your situation, letting them know that you can get the children medicallly examined, you just can't get passports. Perhaps they may instruct a DMP regarding what identification they will accept.
Try the above before disrupting your children's lives by start a court action.
