Head of Federal Green Fund Steps Down Amid Ethical Scrutiny
Annette Verschuren resigned shortly after the ethics commissioner said he would investigate her over allegations of breaching the Conflict of Interest Act.
The board chair of an embattled federal green fund has handed in her resignation shortly after being told by the ethics commissioner she was under investigation.
Annette Verschuren, who had been the chair of Sustainable Development Technology Canada (SDTC) since 2019, told Innovation Minister François-Philippe Champagne she would depart on Dec. 1, according to CBC News and the Globe and Mail.
“While I have faithfully and fully committed myself and my decision-making to serve the organization’s best interests, it is time for me to step aside,” she reportedly wrote in her resignation letter.
Ms. Verschuren had moved a motion for the board to approve COVID-19 relief payments to companies supported by SDTC, including NRStor, of which she is the CEO and the beneficial owner.
NRStor received $106,000 in 2020 and $111,000 in 2021. Ms. Verschuren testified at the House of Commons ethics committee on Nov. 8 and said SDTC had received a legal opinion that conflict of interest rules were not being breached.
Scrutiny of SDTC, an arms-length federal not-for-profit agency funding green technologies, began in early 2023 following whistleblower allegations against its leadership.
Innovation Canada commissioned a fact-finding exercise with third-party firm Raymond Chabot Grant Thornton (RCGT) in March. The firm found that conflict of interest rules had not been “consistently followed.”
After the government received the report, it ordered that SDTC freeze the funding of new projects and gave the agency a management response and action plan.
“Continuous improvement is the foundation of any successful organization and these evaluations have provided useful recommendations for improving procedures, which we wholeheartedly accept. We can always do better,” wrote Ms. Verschuren in her resignation letter.
“Given recent media reports, House of Commons committee testimony, and the surrounding controversy, it is clear there has been a sustained and malicious campaign to undermine my leadership,” Ms. Lawrence said in her resignation letter.
Industry Minister Responds
Conservative MPs had previously criticized Mr. Champagne for not firing anyone at SDTC over the findings from the RCGT report.
“The Minister is committed to ensuring that organizations which receive federal funding adhere to the highest of standards of governance,” said Mr. Champagne’s press secretary Audrey Champoux in a statement. “That’s why he’s determined to get to the bottom of allegations related to SDTC.”
Along with the Ethics Commissioner looking into SDTC, the Office of the Auditor General is also reviewing how the agency funds green projects.
SDTC reported in its latest annual report that it approved $196.4 million in funding during fiscal year 2022–2023 and disbursed $133.2 million to funded projects.