Ottawa abolishes green fund in response to scathing AG report

The federal government is axing a $1 billion green fund in response to a report by the auditor general that pointed to «significant lapses» in its handling of federal funding.

According to Auditor General Karen Hogan, Sustainable Development Technology Canada (SDTC) violated its conflict of interest policies 90 times, awarded $59 million to 10 projects that were not eligible and frequently overstated the environmental benefits of its projects.

Created in 2001, SDTC is a federal foundation that supports small and medium-sized businesses in the clean-tech sector. It entered into a five-year, $1-billion agreement with the department of Innovation, Science and Economic Development (ISED) in 2021.

Shortly after Hogan's report was made public, Innovation Minister François-Philippe Champagne announced that SDTC funds would be transferred to the National Research Council of Canada.

While SDTC operates at arm's length, the NRC reports directly to the minister of innovation.

«As a Government of Canada organization, the NRC is subject to rigorous and stringent oversight of its personnel and finances. This structure will help rebuild public trust while increasing accountability, transparency and integrity,» Champagne said in a news release.

He added that SDTC employees will have access to jobs at NRC.

The government also announced it was lifting its funding freeze on SDTC, which was imposed last fall.

Over the past six years, SDTC has approved 226 projects worth a total of $836 million under its various programs.

Analyzing a sample of these projects, Hogan reported that eight projects worth $51 million «did not support the development or demonstration of a new technology, or the projected environmental benefits were unreasonable.»

According