An internal audit has revealed significant ethical lapses in contracting practices at the National Research Council (NRC), contradicting assurances of “the highest standard” from its president. Blacklock's Reporter says the audit uncovered issues such as favouritism, missing documentation, and inadequate oversight, painting a concerning picture of the federal agency’s practices.“Monitoring of risks within professional services contracting was not functioning,” stated the NRC’s internal report. Random checks of 20 consultant contracts found that in 61% of cases, “key supporting documents were missing,” raising questions about transparency and due diligence.The Audit of Professional Services Contracting also identified instances of undisclosed conflicts of interest. “We observed strong indications of a real or apparent conflict that was not identified and disclosed in two files examined,” the report noted. It also found that some sole-sourced contracts exceeded approved spending limits.The NRC, which allocates 9% of its annual budget — up to $72 million — to consulting services, has struggled with consistent oversight. The audit noted a high turnover in procurement management, with multiple vacancies from April 2020 to June 2023, which highlighted the need for improved monitoring processes.Mitch Davies, president of the NRC, had testified before the Commons public accounts committee just months prior, assuring MPs of the agency’s commitment to “the highest standards” in ethics. “We take very seriously to run this program to the highest standard going forward,” said Davies in his September 3 testimony, adding that the council is working to “restore trust” in its corporate subsidy programs. “It’s regrettable, obviously, the circumstances here that are definitely a challenge.”Bloc Québécois MP Nathalie Sinclair-Desgagné questioned Davies on the council’s efforts to prevent future conflicts of interest, emphasizing the weight of responsibility the agency holds. “How will you ensure these conflict of interest issues will not happen again?” she asked. Davies responded, “It obviously weighs on us that we have to do this very well, do a solid job.”The NRC’s ethical issues have emerged shortly after it was appointed to take over operations from Sustainable Development Technology Canada (SDTC), a dissolved agency criticized by MPs for mismanagement and dubbed the “green slush fund.” SDTC faced accusations of 186 conflicts of interest, distributing $856 million in taxpayer-funded subsidies to private corporations.Conservative MP Larry Brock expressed skepticism over the NRC’s assurances. “Millions of Canadians are skeptical when they hear senior civil servants uttering words like, ‘trust us, we’re going to restore confidence,’” Brock said, underscoring the broader concerns about transparency and accountability within government agencies.
