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QUESTION PERIOD — Innovation, Science and Economic Development

Ministerial Accountability

December 12, 2023


Hon. Donald Neil Plett (Leader of the Opposition) [ - ]

Government leader, last night, a whistle-blower told a House committee about widespread corruption and misconduct at Sustainable Development Technology Canada. At the start of this year, whistle-blowers submitted a 345-page presentation to the Privy Council. It outlined gross mismanagement across every aspect of this green slush fund’s operations and governance, non‑compliance with the legislation and contribution agreement across every single funding stream and serious conflict of interest breaches by management.

Leader, the whistle-blower claimed taxpayers’ money was misappropriated to the tune of $150 million, just in the past few years. Why, leader, hasn’t the Trudeau government referred this matter to the RCMP?

Hon. Marc Gold (Government Representative in the Senate) [ - ]

Thank you for your question. It’s a serious one. It’s a serious matter. As I said before, there is an independent review by a third party law firm that will be reporting its findings to the minister.

Sustainability Development Technology Canada will allow current and former employees to speak freely to the law firm without violating any applicable settlement agreements or non‑disclosure agreements.

Earlier this year, colleagues, Innovation, Science and Economic Development Canada was made aware of these allegations of mismanagement and immediately took a fact‑finding exercise through an impartial third party. My understanding is they have now received the report.

The government takes these findings seriously. Immediate corrective actions are ongoing, including implementation of an action plan by this month. I understand that as this process continues, the government will monitor the situation because the government holds all organizations that receive federal funding to the highest of standards.

Senator Plett [ - ]

Isn’t the real reason it hasn’t referred it to the RCMP is because your government gave this slush fund an embarrassing lack of oversight in the first place, as the whistle‑blower said? Or is it because your government covered up the truth, as the whistle-blower said? Or is it because Minister Champagne and the Prime Minister’s department, the Privy Council Office, have been aware of these issues for longer than they are admitting to Canadians, as the whistle-blower said? Or is it all of the above, leader?

Senator Gold [ - ]

Thank you for your question and for giving me this menu of options. I can only repeat that the government takes these matters seriously. An independent review by a third party is ongoing. A report has been provided to the minister, and corrective action is being taken.

Hon. Yonah Martin (Deputy Leader of the Opposition)

My question for the government leader in the Senate also concerns Sustainable Development Technology Canada. Canadians have learned in recent weeks that three individuals involved in this organization approved funding for companies they had a stake in or owned. However, the whistle-blower who appeared before a committee of the other place last night stated at least half of the board members and executives at this organization were funding companies in which they had a direct financial interest.

Leader, if accountability and the proper management of taxpayers’ dollars meant anything to the Trudeau government, wouldn’t you have referred this to the RCMP by now? What is stopping you from doing so today?

Hon. Marc Gold (Government Representative in the Senate) [ - ]

Thank you for your question. Again, I will repeat, these allegations are serious. The highest standards must be followed by all those who receive government funds. These matters are being dealt with responsibly and seriously through a fact‑finding investigation by an impartial third-party firm. All whistle‑blowers must have the ability to not only speak to the press, but to the firm without fear of breaching any non-disclosure or other agreements that would otherwise preclude them from speaking freely. Corrective actions are being taken and the government will monitor this very carefully.

But the whistle-blower also claimed that in 2021, the former chair of this organization applied for $2.2 million from the green slush fund for a centre named after herself but was ultimately denied. Leader, the Trudeau government must have known about this incident, so why was the chair allowed to step down on December 1 instead of being fired?

Senator Gold [ - ]

I’m not in possession of the information leading up to these matters, which typically are dealt with as human resources matters. In that regard, I can only repeat that the government is taking the appropriate action to make sure that government funds are spent responsibly and honourably.

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