Ethics Commissioner To Testify Before House Committee Regarding Green Fund Violations

July 31, 2024 TruthUSA

The Industry and Technology Committee has voted to summon the ethics commissioner to testify regarding his report on violations of conflict of interest rules associated with the now-defunct Sustainable Development Technology Canada.

“We are arranging a meeting with the ethics commissioner to review his findings, and this needs to happen promptly,” stated Conservative MP Rick Perkins on July 31. “The transition of this fund to the National Research Council is currently in progress.”

Upon the return of Parliament in September, the committee will hear from Ethics Commissioner Konrad von Finckenstein for one hour and former Sustainable Development Technology Canada (SDTC) Chair Annette Verschuren for two hours.

The vote followed a week after the ethics commissioner released a report that found Verschuren did not recuse herself from decisions benefiting organizations she was affiliated with. While she served as board chair, Verschuren concurrently served on the boards of the Verschuren Centre for Sustainability in Energy and the Environment and the MaRS Discovery District.

In June, a report by Auditor General Karen Hogan revealed over 90 breaches of conflict of interest rules related to SDTC, with funds allocated to numerous ineligible projects. Hogan highlighted “significant lapses” in governance and management of taxpayer funds at the organization, including $59 million granted to 10 ineligible projects out of 58.

Hogan determined that 63 of the 90 conflict of interest violations were linked to the two COVID-19 relief payments received by the organization. She stated that these payments also violated the terms of the government contribution agreement, which prohibits blanket payments and mandates individual review for each project.

After the report’s publication, the government announced the dissolution of SDTC and the transfer of all its programs to the National Research Council. Industry Minister François-Philippe Champagne stated in a June 4 release that the auditor general’s review exposed “serious weaknesses in SDTC’s governance.”

An investigation is underway by the ethics commissioner into two former SDTC directors, Verschuren and Guy Ouimet, for approving SDTC COVID-19 relief funds for their own companies. Verschuren argued that an internal legal opinion justified the decision, with the funds allocated as general COVID-19 relief to all SDTC portfolio companies.

Disagreement Over When to Meet

During the Industry and Technology Committee meeting, Liberal MP Pam Damoff confirmed the consensus across parties that Verschuren had behaved improperly. She highlighted Verschuren’s history of appointments dating back to the Harper era and stressed the importance of ethical conduct in such positions.

Significant discussion at the meeting revolved around a sub-amendment to the main motion, proposing the ethics commissioner’s testimony upon Parliament’s return in September rather than within a month.

Conservative MP Michael Cooper argued for prompt testimony from the ethics commissioner, citing the gravity of the report’s findings. He also pointed out 20 additional conflicts, totaling almost $2.6 million, where Verschuren favored motions benefiting companies in which she had a stake.

NDP MP Brian Masse criticized Conservative filibustering during the previous parliamentary session for delaying discussion on the SDTC matter. He highlighted the limited actions the committee could take until the House reconvenes, even if an earlier meeting occurred.

Conservative MP Larry Brock emphasized the core principles of good governance implicated in the SDTC scandal and urged proactive investigation by committee members before Parliament’s return. He stressed the committee’s responsibility to ensure taxpayers receive value for their money.

The sub-amendment for a September meeting was approved despite Conservative opposition, and the subsequent amendment passed unanimously.

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