Investissement Québec (IQ) will specify the terms of an assistance program for companies affected by the pandemic which recently placed the Minister of the Economy, Pierre Fitzgibbon, on the defensive due to the use of his discretionary power in certain files.
Some changes will be made soon to the information given on the IQ website about the Temporary Concerted Action Program for Enterprises (PACTE), the spokesperson for the state-owned company, Isabelle Fontaine, said on Monday.
“Minor details on the terms of the program should be made shortly on the PACTE page,” she said by email, while adding that these terms “remain the same”.
Last week, when the government was starting to tighten up health measures, Mr. Fitzgibbon recalled that the PACTE as well as the Emergency Aid program for small and medium-sized enterprises (PAUPME) were available to companies in a situation of aggravated.
“Difficult situation for some companies, the PACTE and [le] PAUPME are still in force to support them, the minister wrote on social media. We are monitoring the situation closely and we continue to adapt according to the evolution of the pandemic. “
Ten cases identified
At the end of November, Auditor General Guylaine Leclerc underlined the lack of transparency in the criteria for granting loans and loan guarantees associated with the PACTE.
Mme Leclerc more particularly noted ten problematic cases, in which Mr. Fitzgibbon authorized aid totaling 68 million thanks to his discretionary power, and this, even if the beneficiary companies did not respect the criteria of the program.
Subsequently, the Minister explained that he had relied on a guide containing no criteria to make his decisions. Mr. Fitzgibbon however argued that IQ, government agent for the PACTE, had sent him analyzes.
IQ had taken note of the auditors’ findings. According to the report of the latter, the crown corporation had recognized that clarifications should have been made. “It should have been mentioned more clearly than a company deemed strategic for the Quebec economy [pourrait] be granted financial assistance, the terms of which could be adjusted to take into account the risk specific to the file, even if it does not meet all the eligibility criteria, ”IQ said.
In her report, the Auditor General also highlighted large differences in the way regional county municipalities (RCMs) allocated the aid offered under PAUPME. The MRCs managed the program under the supervision of the Ministry of Economy and Innovation (MEI).
The MEI had to ensure that the MRCs applied the terms adequately and that the process was fair from one MRC to another, specifies the document.
“This lack of uniformity has led to inequity for some companies, who have seen their request refused when it could have been accepted if they had been located in another MRC”, indicates the audit report.
The MEI was not in a position to say on Tuesday whether any corrections had been made. According to the audit report, the ministry had undertaken to ensure “that each file is adequately justified according to the normative frameworks of the programs”.