Innovation Minister François-Philippe Champagne says there is no “evidence” that would justify firing the leadership of a federal fund supporting green projects who are under review over mismanagement allegations.
“I work on the basis of evidence. I’m a lawyer, and I would certainly caution members of this committee to apply due process when they’re looking at allegations,” Mr. Champagne told MPs on Nov. 6 when testifying before the House of Commons ethics committee.
The minister was responding to Conservative MP Michael Barrett, who asked why he had not fired the leadership of Sustainable Development Technologies Canada (SDTC), an arm’s-length federal government foundation.
“You just said in your opening statement that you'd taken all reasonable steps. I haven’t heard yet that you fired anyone. Who have you fired?” asked Mr. Barrett.
Innovation, Science and Economic Development Canada (ISED) had in March commissioned professional services firm Raymond Chabot Grant Thornton to carry out a fact-finding exercise after the department was made aware of allegations of mismanagement at SDTC.
The resulting report identified “a number of instances in which SDTC was not in full compliance with the contribution agreement made with ISED,” said Mr. Champagne in a statement on Oct. 3. “It also identified opportunities for improvement in other areas not covered by the contribution agreement, and outside of the scope of intervention for ISED, including human resources, governance, and oversight,” he added.
The report says that “conflict of interest policy appears to not have been consistently followed for Seed Funding” and that it was “inconsistently applied.” It adds that funds were dispersed to ineligible recipients.
Conservative MP Michael Cooper said the report has “damning” findings, contrary to the minister’s stance about there not being enough evidence.
“When you say that you need evidence, you have that evidence,” he said.
Bloc Québécois MP René Villemure complained to Mr. Champagne that the version of the report made available is redacted and doesn’t identify the parties involved.
The minister said his department would work to replace some redactions with terms like “Company 1” and “Company 2” to make the report more intelligible.
The corrective actions announced by Mr. Champagne in October include pausing the funding of new projects by SDTC and providing the foundation with a management response and action plan to address the issues identified in the report, which he said is expected to be implemented by Dec. 31.
The foundation said it would stop approving new projects until the recommendations have been implemented, which it anticipates will be by year-end. It said it would continue to operate as usual with regard to previous funding arrangements.
Mr. Champagne told the committee he welcomes the OAG’s audit and that his department will fully cooperate.
The SDTC is a not-for-profit foundation established by the federal government in 2001.
