Feds don't rule out severance pay, bonuses for managers of disgraced 'green slush fund'
An executive with Sustainable Development Technology Canada would not say if members of the disgraced fund will earn bonuses and/or severance pay. Its board of directors committed 186 conflicts of interest when allocating tens of millions in taxpayer dollars to corporations.
Members of Parliament are beside themselves after an executive with the controversial ‘green slush fund’ would not rule out bonuses or severance pay for managers. The disgraced fund committed 186 conflict of interest violations while in service.
Ziyad Rahme, chief operating officer of Sustainable Development Technology Canada (SDTC), refused direct comment seven times when asked if members of the disgraced fund would financially benefit after the fact, reported Blacklock’s Reporter.
Established in 2001, the $1.6 billion agency was abruptly shut down on June 4 after more than $856 million were awarded to corporations in deals that were rife with conflicts. It funded ‘green’ technology in a bid to reduce emissions.
“Can you tell me if any of the Sustainable Development Technology Canada managers or those making the decisions are getting severance or bonuses?” asked New Democrat MP Brian Masse. “We will comply with employment law,” replied Rahme on Monday.
“Will any of you receive severance packages?” asked MP Masse. “I am focused right now on that transition,” replied Rahme.
After asking the executive again for clarity, he replied: “Any decision related to that will be a decision for the board in the future.”
Auditor General Karen Hogan earlier concluded that one out of six SDTC projects she audited were ineligible for taxpayer funding. She later ordered the fund to be abolished in place of the National Research Council.
The feds lost “confidence” in the SDTC’s senior management, according to Doug McConnachie, assistant deputy minister to Innovation, Science, and Economic Development (ISED).
Conservative MP John Nater maintained the line of questioning, only to be met with attempts to stonewall committee proceedings.
“In our system a refusal to answer can constitute contempt of Parliament,” he clarified. “You are required to answer.”
“That will be a question better directed at the new board,” repeated Rahme. “They decide on my compensation.”
An SDTC whistleblower sent the Trudeau government a complaint earlier this year concerning their alleged mismanagement of funds. In 90 cases, the board of directors voted for subsidies benefiting friends and associates for nearly $76 million in funding.
Conservative MP Rick Perkins said those cases were separate from 96 instances where directors acknowledged conflicts but did not directly participate in votes.
“All the directors resigned in shame,” Conservative MP Larry Brock told a September 3 committee hearing. “Canadians are skeptical when they hear senior civil servants uttering words like, ‘trust us,’” he added.
Leah Lawrence, SDTC president and CEO attributed her departure to “a sustained and malicious campaign to undermine my leadership.”
MPs also learned that Annette Verschuren, the firm’s chair, approved $217,000 in COVID relief funding to her own firm during the pandemic. It was one of roughly 140 companies that received funding then.
Verschuren did not recuse herself from the vote. She was found to have committed 24 ethics violations for failure to recuse herself, Rebel News reported.
Auditor General Karen Hogan blamed the Innovation Department for not sufficiently monitoring the SDTC contribution agreements — a claim it vehemently rejected. SDTC purported a series of measures to ensure compliance with conflict-of-interest policies and better manage public funds.
While the SDTC operates at arm’s length through the National Research Council, the NRC reports directly to François-Philippe Champagne, the innovation minister.
Before the summer recess, a Conservative motion ordered the public service, the auditor general and SDTC to provide Michel Bédard, the Commons Law Clerk with unredacted documents on the latter, which he would provide to the RCMP.
Only eight of 30 government organizations had complied with the Commons order to date, Bédard testified before the Commons procedure committee.
Commissioner Mike Duheme clarified the RCMP may not be able to obtain search warrants for the SDTC documents, citing concerns surrounding privacy rights and parliamentary privileges.
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.
