House Votes to Transfer Federal Green Fund Documents to RCMP

Conservatives' House leader Andrew Scheer in a file photo. The Canadian Press/Adrian Wyld

Opposition MPs have passed a motion ordering the government and the embattled federal green fund to hand over a large quantity of documents to the RCMP.

The move comes after the Office of the Auditor General (OAG) found the green fund, Sustainable Development Technology Canada (SDTC), rife with conflicts of interest.

The motion, tabled by Tory House Leader Andrew Scheer, was adopted 174-148 in a House of Commons vote on June 10, with only the Liberals opposing it.

The motion requires the government, SDTC, and the OAG to deposit with the House Law Clerk a wide-ranging number of records related to the green fund since 2017, from internal emails to conflict-of-interest declarations. The order also seeks financial information on companies tied to past or present SDTC directors.

“An RCMP investigation is the only way to fully expose all wrongdoing and potential criminality at the SDTC Green Slush Fund,” the Tories said in a statement.

Speaking on the motion on June 6, Liberal MP Ryan Turnbull said that the government acknowledged “lapses” in the fund’s management but argued cabinet was already taking “definitive action” to address it. He added that the auditor general did not find “any evidence or suspicion of criminal behaviour” so did not warrant RCMP involvement.

In a June 4 report on SDTC, Auditor General Karen Hogan said her office found 90 breaches of conflict of interest rules, including directors voting to provide money to their own companies. Ms. Hogan found these conflicts were linked to $76 million in funding.

Ms. Hogan also found $59 million for 10 projects that were funded despite failing to meet the stated requirements. Other projects were provided $20 million without being properly screened.

An SDTC whistleblower had identified last year $150 million in funding improperly allocated, alleging “gross mismanagement” and “ gross misconduct” at the green fund.

SDTC is an arms-length foundation established by Parliament in 2001 with a mission to fund clean technology companies. Innovation, Science and Economic Development Canada (ISED) is responsible for its oversight.

The federal government suspended SDTC’s ability to fund new projects in the fall of 2023 after receiving whistleblower allegations and commissioned a third-party review of the claims.

In response to the OAG report, Industry Minister François-Philippe Champagne announced that SDTC programs are being transferred to fall under the authority of the National Research Council (NRC), an agency under his purview.

Mr. Champagne said in a recent statement that SDTC has “played a critical role in the growth and success of the clean technology sector in Canada.”

He acknowledged, however, that reviews by the OAG and others have “have revealed serious weaknesses in SDTC’s governance.”

Along with announcing the transfer to the NRC, Mr. Champagne said funding was resuming, but under a “reinforced contribution agreement” with his department.

The fate of the SDTC, which is being stripped of its programs, is uncertain. Asked to comment on the matter, ISED only mentioned the transfer to the NRC.

“It is expected that the transition of SDTC to the NRC will span several months,” spokesperson Hans Parmar told The Epoch Times in a statement.

The ethics commissioner is currently conducting probes into two previous SDTC directors for potential violations of the Conflict of Interest Act. Results are expected in August.