Former Green Fund Chair Under Ethics Review Says Actions Were ‘Normal Course of Business’

The Peace Tower is pictured from the roof of the Centre Block during a media tour of the Centre Block restoration project on Parliament Hill in Ottawa, on June 22, 2023. (The Canadian Press/Sean Kilpatrick)

The former board chair of an embattled federal green fund who is under an ethics review for approving money for her own company maintains she did no wrong because it’s the “normal course of business” for the government to support the clean tech sector.

Annette Verschuren completed her testimony before the House of Commons industry committee on Dec. 14, two days after her appearance at the previous meeting had been cut short. Ms. Verschuren said her computer froze and she wasn’t able to reconnect on time.

The industry committee is doing a review of Sustainable Development Technology Canada (SDTC), an arms-length federal foundation investing in green technologies, which has been accused of corruption by a whistleblower.

A former financial compliance employee of SDTC told the committee Dec. 11 that nearly $150 million was misappropriated, with directors of the fund sending money to companies they have ties to.

Ms. Vercshuren had previously testified that she had moved a motion to provide COVID-19 relief payments to companies supported by SDTC, including her own. She defended her actions, saying she had consulted with a legal professional who told her it was not a conflict of interest because the conflicts had been previously declared.

In committee on Dec. 14, Conservative MP Rick Perkins asked Ms. Verschuren if she had read the Sustainable Development Technology Canada Act of 2001, which created the entity. She answered in the affirmative.

Related Stories

Former Chair of Embattled Green Fund Says She Did No ‘Wrong’ as Testimony Cut Short

12/13/2023

Whistleblower Alleges ‘Corruption’ in Federal Green Fund’s Disbursement of $150M

12/12/2023

Mr. Perkins noted that it states “no member shall profit or gain any income or acquire any property from the Foundation or its activities.”

“Was that not furthering his personal interests?” Mr. Perkins said when noting several instances of SDTC board directors approving money for their own companies.

“These investments are made to further the opportunities in the Canadian clean tech industry,” said Ms. Verschuren.

“Our investments are being made to further these technologies and this is normal course of business.”

One of the arguments Ms. Verschuren has made for defending the COVID-19 payments to companies, with some having ties to board directors, is that all had received an equal share.

“Is it still your contention that though some companies were given a five percent increase, and others a 10 percent increase, that all companies were treated equally?” asked Tory MP Michael Barrett.

Ms. Verschuren said the first round of payments was five percent “across the board,” but for the second round the management identified some companies “in their analysis and developed these milestones that indicated that if they could be given a little more money, the 10 percent, that would really help accelerate and sustain those businesses.”

Ms. Verschuren specified that her company NRStor had received five percent each time.

“You testified that they were all treated equally and five percent and 10 percent are not equal numbers,” said Mr. Barrett.

‘Misappropriated Funds’

After receiving the whistleblower complaint in early 2023, Innovation, Science and Economic Development Canada (ISED), which oversees SDTC, commissioned a fact-finding exercise with third-party firm Raymond Chabot Grant Thornton (RCGT).

RCGT found a host of issues, including that the conflict of interest policy was “inconsistently applied,” that a funding stream appeared to be non-compliant, and that all board decisions were made unanimously.

It also noted that COVID-19 payments were not being tracked and appeared non-compliant, that SDTC human resources was not tracking internal complaints, and it raised questions on the allocation of millions of dollars.

“The RCGT report sampled only 22 companies and found $40 million in misappropriated funds. The whistleblower that testified identified up to $150 million in misappropriated funds. Are you confident that Canada’s Auditor General will find that there were $0 in misappropriated funds?” asked Mr. Barrett.

“I think the Auditor General will find that the processes and procedures and discipline that we have in investing in the clean tech sector is second to none,” replied Ms. Verschuren.

The whistleblower complaint had been filed initially with the Auditor General, which is currently reviewing the matter.

‘Bare Bones’

The industry committee has access to SDTC board meeting minutes and that’s the area NDP MP Brian Masse questioned Ms. Verschuren on.

“How is it that there was no understanding or appreciation of how deficient some minutes were?” he asked, calling them “bare bones” while dealing with “significant financial issues.”

“How is it board members sitting on so many boards and yourself didn’t actually come to the conclusion that your board minutes were basically a fraud?”

Ms. Verschuren said the minutes are “not a fraud” while recognizing that there are areas that could be improved. “Those meetings did reflect people recusing themselves from those projects,” she said.

Ms. Verschuren and fellow board member Guy Ouimet are currently under investigation by the Ethics Commissioner for awarding SDTC funds to their own companies.

Ms. Verschuren, a former Home Depot CEO, resigned her chair on Dec. 1. SDTC CEO Leah Lawrence also resigned in November.

Industry Minister François-Philippe Champagne has defended not firing the leadership after he announced the suspension of funding of new projects at SDTC in October, citing the need for evidence and due process.