This series focuses on the boards of directors of state cultural corporations in Quebec. Third case: the situation at odds with certain members of the SODEC board of directors.
Can we be both judge and party? Quebec has bet that yes by establishing the rules for forming the board of directors (CA) of the Cultural Enterprise Development Corporation (SODEC), which distributes tens of millions of dollars each year.
The position of chairman of the board of SODEC is occupied by Stéphane Achard, vice-president of the National Bank (BN). However, this institution is one of the major financial partners of several companies in the sector. When a film or television production company receives a notice of support from the state corporation, it often turns to the BN to obtain the financing necessary for filming, including tax credits, loans and broadcasting contract.
Both SODEC and BN refused to say how many business contracts — and for what sums — the bank has signed with companies supported by SODEC. “The financial activities of companies with their financial institutions are confidential,” wrote to Duty Johanne Morissette, director of communications for the public organization.
Mme Morissette has, however, certified the watertightness of the support processes. “The analysis of financing, whether at SODEC or by a bank, is entirely independent,” she writes. Financing decisions are made by the Company and committees made up entirely of independent members, and Mr. Achard is in no way involved in the authorization process or the Board of Directors. Furthermore, SODEC’s support for filming is not required for a bank to finance a project. A producer must obtain a variety of financing in order to have a complete financial structure for a given project. »
Mr. Achard and BN refused to be interviewed and referred the file to SODEC, which is responding for its directors. The media relations department of the Ministry of Culture and Communications, to which SODEC depends, referred The duty to the code of ethics of CA members. These ethical rules require them to “avoid any situation of real, potential or apparent conflict of interest, direct or indirect, likely to hinder the exercise of their functions and the pursuit of the goals of the Company”.
The ministerial response points to the Act respecting the governance of state-owned corporations, which requires that at least two-thirds of the members of the CA, including the president, qualify as independent directors by June 3, 2024. “A member qualifies as such if it does not have, directly or indirectly, relationships or interests, for example of a financial, commercial, professional or philanthropic nature, likely to harm the quality of its decisions with regard to the interests of society,” states article 4.
At the same time, SODEC’s board of directors is only made up of professionals from various companies and backgrounds corresponding to the Company’s areas of expertise, notably cinema and television production. The senior administration of the organization is therefore legally entrusted to representatives of the sectors which directly benefit from its subsidies.
Inside and outside
The situation of apparent conflict of interest (and not proven conflict of interest) was recently denounced in an open letter sent to the Legault government and signed by a group of the main unions in cultural circles. The release mainly attacked the fact that the current system of support for arts and culture only benefits a few big producers while artists vegetate. In 2022-2023, SODEC supported 1,328 cultural businesses with aid totaling $203 million, but also $48.7 million from a program temporary aid in the audiovisual sector intended to offset the repercussions of the pandemic.
The signatories also protested against the presence of representatives of audiovisual production companies and record labels on the SODEC board of directors: “How can production companies, which receive subsidies, sit on the boards of directors? companies that grant these subsidies themselves, while the artists are absent? » says the text signed by union organizations of audiovisual technicians, directors, musicians, authors, media and artists.
“On the one hand, what is interesting is that we have access to this information: it is not gossip, it is an observation that arises from the transparency of state companies,” noted in an interview the president of the Union of Artists, Tania Kontoyanni, who signed the public letter. On the other hand, as a citizen, I find it extremely important to have confidence in the institutions that govern our lives, whether in culture or in any sector. »
For her, this delicate position of delegates from the sectors covered by SODEC can be linked to that concerning the lack of diversity in the composition of this board of directors like all others similar to it in Quebec. An analysis of the Duty shows that only a handful of professional artists sit on the boards of nine state cultural societies.
“We are asking to review the distribution of funds to irrigate the entire cultural system, right down to the creators,” said President Kontoyanni. Reform of the CA constitution can be part of the solution. The criteria for appointing members should be reviewed. »
The example of audiovisual
On the SODEC board, the audiovisual production sector is represented by two company executives, namely Louis-Philippe Drolet, co-founder with Louis Morissette and vice-president of KOTV, and Nancy Florence Savard, founder and president of 10e Ave Productions. Mr. Drolet attended the seven meetings of the Board of Directors in 2022-2023, Mr.me Savard only missed one. KOTV received more than 2.8 million in grants during this period, and 10e Ave, a little over $310,000 in various aid.
SODEC reiterates that its CA does not in fact authorize any subsidies and that its members do not participate in discussions concerning the subsidies that SODEC grants. “Its mandate consists of approving the programs that have been studied and recommended by the commissions,” writes the director of communications of the state corporation. Once adopted by the SODEC Board of Directors, the program is then transferred to the Minister of Culture and Communications for [son] approval based on an additional analysis carried out by the Ministry of Culture and Communications. When all these steps are completed, the program comes into force and the funds earmarked by the government can be allocated according to the criteria established by the program. »
Louis-Philippe Drolet did not respond to questions about him at SODEC. Company 10e Ave did not respond to questions related to Mme Savard. The request for an interview with the Minister of Culture and Communications, Mathieu Lacombe, was refused.