Opposition MPs aim to unravel conflicting testimony regarding embattled Federal Green Fund

September 23, 2024 TruthUSA

Opposition MPs have voted to call back witnesses to committee on the federal green fund, in order to explore contradictory evidence related to the appointment of its former board chair found in breach of the Conflict of Interest Act.

Opposition MPs on the House of Commons public accounts committee passed a motion on Sept. 23 to hear again from former industry minister Navdeep Bains and Privy Council Office (PCO) official Donnalyn McClymont.

The two had testified previously that the appointment of Annette Verschuren as board chair of Sustainable Development Technology Canada (SDTC), a federal arms-length foundation investing in green technologies, had followed a normal process. Verschuren instead said she never applied and was approached by the government. Verschuren resigned from the role late last year.

The witnesses being recalled need to be “held accountable for these contradictions and whether or not they overrode the appointments process to put a political appointee in place in this manner,” said Tory MP Rick Perkins, who tabled the motion.

Innovation, Science and Economic Development Canada (ISED), the department overseeing SDTC, is in the process of effectively dissolving the fund after the auditor general found board members were approving money for their own companies or funds were allocated to ineligible projects.

Bains, who previously held the ISED portfolio, told the industry committee in June the process for selecting a new SDTC board chair under his watch had been fair and transparent.

PCO’s McClymont, who oversees government appointments, told the public accounts committee on Sept. 5 PCO had received close to 100 applications for the position of SDTC chair in 2018. A shortlist of under 10 names was then provided to the cabinet to choose from, she said.

Former SDTC chair Verschuren provided a different account when she appeared before the industry committee on Sept. 16.

“I never applied for the position of the chair of SDTC,” she said. “The situation was that there was indications that I was requested to consider to be an applicant.”

Probes

Several House committees and government watchdogs have looked into SDTC since issues have been brought to light. SDTC employees blew the whistle on the matter in early 2023, and Ottawa suspended SDTC funding in October 2023 after a third-party fact-finding exercise.

The Office of the Auditor General released its report on SDTC in June, finding “significant lapses” in the foundation’s “governance and stewardship of public funds.” Out of a sample of funded projects, the office found $59 million disbursed to ineligible projects and nearly $76 million awarded to projects with conflicts of interest.

Perkins has suggested the appointment of a chair under these circumstances has led to a “culture of entitlement and a culture of conflict” within the federal fund.

The Office of the Conflict of Interest and Ethics Commissioner conducted an investigation into Verschuren’s tenure as board chair. In a report released in July, the office said Verschuren had breached the Conflict of Interest Act for not recusing herself and participating in decisions benefiting her personal interests.

In her testimony on Sept. 16, Verschuren said she accepted the findings of the commissioner and that she had acted in good faith and in accordance with SDTC legal advice.

The commissioner’s report also says that Verschuren had been contacted by staff from Bains’s office in April 2019 to discuss the possibility of being appointed as SDTC chair. The following month, Verschuren filed a declaration of conflict-of-interest with the ethics commissioner, noting one of her companies was receiving SDTC funding.

McClymont testified in early September that cabinet appointed Verschuren while knowing about the conflicts.

“The cabinet approved the idea that we should appoint a chair with a conflict of interest. That’s how Ms. Verschuren ended up in the job. That’s correct—right?” asked Perkins.

“I would say, yes … that is correct,” said McClymont.

Bains, who currently works as an executive with Rogers, didn’t confirm the matter when he was pressed on the issue as he testified.

“There’s a very clear process in selecting the individual. It was a very open, fair and transparent process,” he said. Bains also said he didn’t recall some details about the Verschuren case, noting how he had made over 100 Governor in Council appointments during his tenure.

Industry Minister François-Philippe Champagne, who succeeded to Bains in the role, announced in June that SDTC projects were being moved under the National Research Council. He said the fund would benefit from a new governance model after being established over 20 years ago.

“Sustainable Development Technology Canada (SDTC) has played a critical role in the growth and success of the clean technology sector in Canada,” Champagne said in a statement. The minister added he agrees with the findings of the auditor general and supports its recommendations.

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