A scathing federal report has revealed widespread mismanagement and conflicts of interest at a now-defunct green technology agency that cost Canadian taxpayers more than $150 million reports Blacklock’s Reporter.
Sustainable Development Technology Canada (SDTC), established in 2001 to fund environmental innovation, imploded in June 2024 when its entire board resigned following the discovery of 186 conflicts of interest in a federal audit.
The Privy Council report described an organization plagued by questionable governance and executive misconduct.
The agency's bonus structure incentivized rapid fund disbursement without proper oversight, leading to numerous non-compliant funding decisions.
“Sustainable Development Technology Canada made increasingly questionable decisions,” said the Privy Council.
It was “an organization where lack of governance and a continuous cycle of executive mismanagement led to serious conflict of interest breaches as well as the gross mismanagement of over $150 million of public funds.”
Internal whistleblowers exposed rampant cronyism, including appointing the CEO's husband's childhood friend to an executive position.
The workplace culture deteriorated significantly, with 20 employees resigning within a year, four staff members taking stress leave, and three of four executives being personal associates of the CEO.
These findings sharply contradict testimony from former SDTC executives to the Commons Public Accounts Committee.
Sheryl Urie, former vice president of finance, defended the agency's record on June 20, insisting that "all Canadians are benefiting from this."
The scandal has sparked a political crisis, with Cabinet failing to comply with a Commons order to release all records related to the agency's inside dealings.
This non-compliance has triggered an Opposition filibuster that has stalled House business since late September.
The Privy Council's conclusions support Conservative critics who had previously labelled the agency a "green slush fund."
When questioned about such criticism's impact on SDTC's credibility, Urie acknowledged to Liberal MP Iqra Khalid that responding to these allegations was "difficult."
The report's findings raise serious questions about the oversight of federally funding agencies.
