Disgraced 'slush fund' receives praise for meeting climate targets
The Canadian federal agency responsible for funding and supporting companies in developing and commercializing clean technologies was dissolved last summer following an audit that uncovered 186 conflicts of interest and insider dealings in the allocation of $2.1 billion in subsidies to friends of directors.
Despite ongoing scandals and internal corruption that led to its collapse last June, an internal Department of Industry report claims that Sustainable Development Technology Canada (SDTC) made significant progress towards meeting climate targets. The report only briefly mentions the inside dealing, according to Blacklock’s.
"The fund aligned with the federal government's role in driving sustained clean technology growth," said the report. It was "helping Canada achieve its environmental objectives and contributing to sustainable economic growth."
The agency was disbanded on June 4 after auditors documented 186 conflicts of interest and inside dealing in the awarding of part of $2.1 billion in subsidies to friends of directors.
The audit, which began before being paused in March 2023 after the Department of Industry was informed of mismanagement allegations, was completed on the day of the disbandment.
A newly-released evaluation of the SDTC concluded the agency was valuable, stating that "well-designed policies" and "targeted incentives" can strengthen Canada's economic competitiveness by reducing barriers to innovation.
Evaluation concluded that while Canada has emission reduction targets, government funding is crucial to support clean tech innovation for environmental and economic opportunities. This conclusion was based on 30 interviews with managers, directors, and private sector firms that successfully received subsidies.
Following "hurtful" criticisms of being a "slush fund," SDTC management defended the organization. Then-Vice President Sheryl Urie testified to a Commons committee last June that "all Canadians are benefiting" and deemed the non-profit foundation a "great success."
Auditor General Karen Hogan found that one in six audited projects were ineligible for funding and recommended abolishing the fund for the Research Council.
Opposition MPs criticized SDTC for a "culture of conflict" among federal appointees, citing a 2023 audit that exposed 186 conflicts of interest in $2.1 billion of subsidies.
Conservative MP Rick Perkins demanded transparency, while Conservatives highlighted $42.5 million in SDTC funds to companies tied to Cycle Capital Management, where now Culture Minister Steven Guilbeault, a former shareholder, received $4.4 million in subsidies and undisclosed fees.
Liberal and Bloc Québécois MPs blocked a motion for Guilbeault to testify on this financial, dismissing it as a politically motivated attack.
A whistleblower had come forward alleging mismanagement, and former SDTC chair Annette Verschuren was found to have committed 24 ethics violations, including failing to recuse herself from funding her own company. An internal audit also revealed the National Research Council’s (NRC) weak oversight, with $72 million in unaccountable consultant spending.
Opposition MPs accused the Liberal government of withholding SDTC documents, with Conservative House Leader Andrew Scheer alleging a cover-up.
Parliament, prorogued by Prime Minister Justin Trudeau on January 6, resumes May 26 under Mark Carney's newly minted Liberal leadership.
Alex Dhaliwal
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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.
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COMMENTS
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Robin Dutton commented 2025-05-24 09:48:45 -0400Simply a matter of, follow the money. Fleece the taxpayers, enrich your pals under the guise of saving the world.
But but we are meeting our climate goals they say. Don’t mention these are goals set by very wealthy folks who fly their private jets from one meeting to another to decide how everyone else how should live and have no intention of following these dictates themselves.
We’ll have Jeeves the pilot fly us to Milan for lunch, the weather is lovely. -
Bruce Atchison commented 2025-05-23 19:16:53 -0400All that green crapola is a scam. It’s a Marxist plot to redistribute wealth while making some folks rich. Abolish all these stupid sustainable development scams!
