Federal probe of employee complaints about billion-dollar green fund now complete

The federal government now has the results of a probe it launched into a federal agency tasked with funding early-stage green technology — an agency that has been the target of employee complaints about hundreds of millions of dollars paid to the green tech sector.

Radio-Canada has learned the final report, drafted by an outside firm, will be presented soon to Industry Minister François-Philippe Champagne, who is responsible for funding and overseeing Sustainable Development Technology Canada (SDTC).

Before presenting the report to Champagne, officials at Innovation, Science and Economic Development Canada will prepare an "action plan" to respond to the investigation's findings, sources said.

"If there are decisions to make, we will make them," said a federal official.

Little known to the general public, SDTC is at the heart of Ottawa's efforts to foster a technological transition toward a greener economy. It focuses its efforts on small and medium-sized businesses.

According to its current agreement with Ottawa, SDTC has $1 billion to spend between 2021 and 2026. SDTC is managing a budget of $170 million this year. The amount of available funding rises every year to reach $320 million in 2025-2026.

In a written statement, Innovation, Science and Economic Development Canada said it received "allegations of wrongdoing" last February in relation to SDTC funding decisions and human resources management.

The department called on an external firm, Raymond Chabot Grant Thornton, "to examine the situation and validate the alleged facts." Its report is expected to be made public in coming weeks.

The department said it "will not hesitate to take all necessary measures in response to the findings of the report to remedy any deficiencies or problems identified."

A SDTC spokesperson said the foundation is continuing its activities in the meantime.

"SDTC is fully cooperating with the fact-finding exercise undertaken by Innovation, Science and Economic Development Canada in response to allegations made by a small group of former employees," said Janemary Banigan. "We eagerly await the findings, so that we can put this matter behind us and focus on serving Canadian entrepreneurs."

She said SDTC hired external counsel to look into the allegations and they "found no evidence to substantiate any of the allegations made."

The foundation has provided $1.6 billion in funding to more than 500 businesses since its inception in 2001.

A group of former and current SDTC employees has filed a formal complaint about the agency's management with the federal government.