Second Director of Federal Green Fund Faces Ethics Probe

A view of Centre Block, the main building on Parliament Hill in Ottawa, in a file photo. The Canadian Press/Justin Tang

Canada’s Ethics Commissioner has launched a second review into a board member of a federal green fund who approved COVID-19 relief payments to a company he has interests in.

In a Dec. 8 letter, Interim Ethics Commissioner Konrad von Finckenstein said he would examine the actions of Guy Ouimet as board director of Sustainable Development Technology Canada (SDTC).

The SDTC, an arms-length federal entity investing in green technologies, is embattled following whistleblower complaints earlier this year alleging mismanagement and conflicts of interest within the leadership

Mr. von Finckenstein’s letter was addressed to Conservative MP Michael Barrett, who asked that Mr. Ouimet be investigated.

Mr. Ouimet was appointed as a board member of SDTC in 2018. A company for which he is a director received $393,805 from SDTC in COVID-19 relief payments in 2020 and 2021.

Mr. Ouimet testified before the House of Commons industry committee on Dec. 5, saying he had not recused himself when the board approved the payments for Lithion Recycling.

“Since my appointment to the board I have periodically declared all real, apparent, and potential conflicts,” Mr. Ouimet testified. “I have acted in good faith,” he said.

Mr. von Finckenstein wrote in his letter that allegations that Mr. Ouimet participated in making a decision that provided an opportunity to further his private interests, and the failure to recuse himself from a decision that can impact his private interests, are grounds to launch an ethics probe under the Conflict of Interest Act.

The Epoch Times reached out to SDTC for comment but did not hear back immediately.

Second Probe

The Ethics Commissioner’s review of Mr. Ouimet’s actions is the second probe to hit an SDTC director.

Former SDTC board chair Annette Verschuren is also under review for similar circumstances. Ms. Verschuren moved a motion for the board to approve COVID-19 relief payments to SDTC-supported companies, which included $217,000 to her own business NRStor.

After the information surfaced, Ms. Verschuren handed in her resignation to Industry Minister François-Philippe Champagne.

“While I have faithfully and fully committed myself and my decision-making to serve the organization’s best interests, it is time for me to step aside,” she wrote in her resignation letter.

A few days earlier, SDTC president and CEO Leah Lawrence had also stepped down, citing a “sustained and malicious campaign to undermine my leadership.”

Conservatives had called on Mr. Champagne to fire the leadership of SDTC after Industry Canada announced it was freezing the funding of new projects at the federal foundation. The minister said he would not do so given the lack of evidence.

“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 the House ethics committee on Nov. 6.

Various probes have been launched into SDTC. A fact-finding exercise by third-party firm Raymond Chabot Grant Thornton led to the federal government suspending the foundation from approving new funding.

The Auditor General has also opened a review to determine how SDTC finances green projects.

SDTC reported in its latest annual report that it approved $196.4 million in funding during fiscal year 2022–2023 and disbursed $133.2 million to funded projects.