Another federal slush fund fails an internal audit
The National Resource Council (NRC) spends up to $72 million annually on consultants with minimal oversight, auditors learned.
The National Research Council (NRC) had already suffered severe blows to its reputation over contracting irregularities, according to the Trudeau government. Mitch Davies, the NRC president, previously said it would uphold “the highest standards” on ethics, reported Blacklock’s Reporter. While the agency spends up to $72 million annually on consultants, auditors learned that it does so with minimal oversight.
“Monitoring of risks within professional services contracting was not functioning,” said the Audit Of Professional Services Contracting. Of some 20 contracts randomly checked, 61% were missing “key supporting documents.”
“With regards to conflicts of interest, we observed strong indications of a real or apparent conflict that was not identified and disclosed in two files examined,” reads the audit.
The SDTC, a $1.6 billion agency, was abruptly shut down on June 4 for awarding more than $856 million to corporations in deals that were rife with conflicts. It funded ‘green’ technology in a bid to reduce emissions.
Before ceasing all activities, the SDTC operated at arm’s length through the NRC, which reported directly to François-Philippe Champagne, the innovation minister.
Staff from the “green slush fund” were allowed to work for the NRC after June 4, a decision that promptly raised eyebrows.
Auditor General Karen Hogan concluded that one out of six SDTC projects she audited were ineligible for taxpayer funding, and later ordered the fund to be abolished in place of the Research Council.
According to Doug McConnachie, assistant deputy minister at ISED, the federal government lost "confidence" in SDTC's senior management, while Auditor Hogan blamed the Innovation Department for failing to monitor contribution agreements — an accusation rejected by staff.
A whistleblower complaint to the Trudeau government this year alleged SDTC mismanagement of funds, with the board approving nearly $76 million in subsidies for friends and associates in 90 cases. Conservative MP Rick Perkins clarified that these cases were separate from 96 instances where directors acknowledged conflicts but did not directly participate in votes.
The feds had lost “confidence” in SDTC’s senior management, according to Doug McConnachie, assistant deputy minister to Innovation, Science, and Economic Development (ISED).
Leah Lawrence, former SDTC president and CEO, attributed her departure to “a sustained and malicious campaign to undermine my leadership.”
Annette Verschuren, the firm’s former chair, did not recuse herself from a vote to fund her own company during the pandemic. She committed 24 ethics violations in total for failure to recuse herself, Rebel News reported.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
COMMENTS
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Bruce Atchison commented 2024-11-13 21:41:45 -0500The Trudeau regime is thee most corrupt Canada has ever had. Like his Dad and Liberal leaders before him, Trudeau is raiding the country’s account and showering money on its friends. What a gangster government!
