While he found that the conclusions of an independent investigation were serious enough to suspend certain activities of a federal fund that finances the development of clean technologies, the federal Minister of Innovation, Science and Industry, François -Philippe Champagne, has not seen any elements that give rise to fears that there were criminal acts committed.
His ministry announced late Tuesday the suspension of funding for new projects by Sustainable Development Technologies Canada (SDTC) following an independent investigation by Raymond Chabot Grant Thornton (RCGT). Minister Champagne gives the organization until December 31 to correct the deficiencies observed.
In the report, Mr. Champagne did not see any elements suggesting that the file should be sent to the police.
“I have not seen, to date, any allegations of this nature,” he replied in a press scrum on the sidelines of a presentation as part of the Sweden-Canada Innovation Days. This is why I think we took a proportionate approach and a cautious approach. »
“There are certain deficiencies that we have seen, but the allegations that I have seen, to date, in the report, suggest that the action plan that was proposed by the external experts will allow us to correct that and to start being able to pay again for businesses that need it,” adds the minister.
SDTC’s mission is to provide financial support for the development of clean technologies in Canadian small and medium-sized businesses. The foundation had a mandate from the federal government to distribute $1 billion between 2021 and 2026. It was to disburse an amount of $156 million during the 2023-2024 fiscal year.
The foundation has been the subject of denunciations from former employees regarding the management of funding allocated by the federal government and the management of human resources. In April, the minister requested an independent investigation to shed light on these allegations.
The RCGT report concludes that there has not been consistent monitoring of the conflict of interest policy. Also, certain beneficiaries “had not directly developed new sustainable technologies, which contravenes the spirit of the contribution agreement”, underline the external experts.
Mr. Champagne considered the conclusions serious enough to intervene. “I asked that certain activities be suspended to ensure the integrity of the program because I think that taxpayers expect that all agencies that receive funds from the Government of Canada act with the highest governance standards,” he explains.
In a statement, SDTC argues that the investigation “found no clear evidence of wrongdoing or misconduct at SDTC and indicated that no further investigation was necessary.”
Mr. Champagne does not fear that the temporary suspension of funding for new projects will harm the mission of promoting the development of clean technologies in Canada. “It’s still a short period. Then, you know, most of these projects have a long gestation period. It’s rarely a matter of weeks or months. »
If funding for new projects is suspended, SDTC assures that “normal business operations will continue, including the disbursement of funds for all existing projects in our portfolio, in accordance with company contribution agreements.”
“It’s taxpayers’ money”
Conservative MP Gérard Deltell described the situation as “very worrying” during a press scrum in Ottawa. “It certainly concerns us because this money is taxpayers’ money. »
Mr. Deltell accuses the Trudeau government of having set a bad example in terms of financial management. “At first glance, what we see is that there has been a completely irresponsible way of managing public funds. […] Unfortunately, we must say that the example comes from the top. This government has spent lavishly since coming to power. »
The results of the independent investigation demonstrate that “we need to re-evaluate the approach” of SDTC, according to NDP leader Jagmeet Singh. “We must ensure that the money that is used to invest more in clean technologies must be used for this purpose. If there are problems that have been raised, they must be resolved before continuing. »