Federal Report Reveals Controversial Decisions Made by Defunct Green Fund
A recent federal report revealed that the former federal green fund Sustainable Development Technology Canada (SDTC) was involved in conflicts of interest with insiders, leading to questionable decision-making.
The report obtained by Blacklock’s Reporter from the Privy Council highlighted that SDTC lacked governance and suffered from ongoing executive mismanagement, resulting in serious breaches of conflict of interest and the mismanagement of over $150 million in public funds.
SDTC’s executives’ performance and bonuses were linked to the amount of approved funding and its quick disbursal, creating a significant problem for the foundation. This led to the allocation of millions of dollars to projects that potentially violated compliance standards and showed clear conflicts of interest.
The report also exposed instances of cronyism, including the hiring of a childhood friend of the CEO’s husband for a high-ranking position. The organization experienced staffing instability with a high turnover rate and executives with personal connections to the CEO.
Established in 2001 to support green research and development initiatives, SDTC was dissolved on June 4, 2024, following a report by Auditor General Karen Hogan, revealing 90 instances where directors approved funding for their own ventures, breaching conflict-of-interest regulations.
Following the release of Hogan’s report, Innovation, Science and Economic Development Canada announced the transfer of all SDTC programs to the National Research Council.
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Ethics Commissioner Konrad von Finckenstein’s report in July found that former SDTC chair Annette Verschuren breached the Conflict of Interest Act by failing to recuse herself from certain funding decisions that benefitted companies she was affiliated with.
Parliament has been at a standstill since October, with the Liberal government unwilling to provide SDTC-related documents to the RCMP for investigation. The Conservatives accuse the government of violating parliamentary privilege by withholding the information, citing concerns about privacy rights under the Charter.
In July 2024, RCMP Commissioner Michael Duheme informed the House of Commons that the force couldn’t use the obtained SDTC records for criminal investigations due to inadequate security measures during their acquisition.
