Cabinet is scrutinizing millions in funding for the Black Business and Professional Association (BBPA) following allegations of financial misconduct among its directors, according to a Department of Social Development memo. Blacklock's Reporter says over the past three years, the BBPA has received a total of $5,217,345 in grants."The organization is undergoing an independent review and forensic audit into allegations of financial misconduct," stated the May 7 briefing note. "As we await results of this audit, the government is reviewing funding provided to the organization in question to ensure related expenditures align with the provisions of the agreement signed by the recipient."The memo, titled Allegations Of Financial Misconduct By Black Business And Professional Association Board Of Directors, further emphasized, "Pending the results of the review, we will respond appropriately to maintain the integrity and transparency of our grants and contributions agreement."CBC Toronto reported on May 13 that records suggest the Association concealed over $800,000 in "related party transactions" with friends and associates of directors, which charities are required to disclose under the Income Tax Act. The Toronto-based BBPA, registered as a charity in 1983 to promote "equity and opportunities," has denied any wrongdoing, and no police charges have been filed."The board of directors is alleged to have used government grants and sponsorship donations to award contracts to companies linked to a former president and CEO," noted the briefing. The Department of Social Development is awaiting an independent auditor's report on the matter."The Government of Canada always takes allegations of this nature seriously," the note continued. "The government remains committed to operating with integrity and transparency when managing grants and contribution agreements and expects funding recipients to do the same. Should the government determine funds it provided directly to an organization were used inappropriately, it will respond using tools at its disposal."Funding for black business groups saw a significant increase in 2020 with the introduction of a $33 million federal loan guarantee program exclusively for Black entrepreneurs. "Economic empowerment is an essential part of justice," said the Prime Minister at the time. "It’s justice against a system that has locked out far too many Black entrepreneurs and denied them the same opportunities as other Canadians."Statistics Canada reported in 2019 that 1.2 million people in Canada identified as black, with about half, over 623,000, being immigrants from countries such as Jamaica, Haiti, Nigeria, Ethiopia, and Somalia. "Ottawa, Lethbridge, and Moncton had the fastest-growing black population in the country between 1996 and 2016," noted the report.
Cabinet is scrutinizing millions in funding for the Black Business and Professional Association (BBPA) following allegations of financial misconduct among its directors, according to a Department of Social Development memo. Blacklock's Reporter says over the past three years, the BBPA has received a total of $5,217,345 in grants."The organization is undergoing an independent review and forensic audit into allegations of financial misconduct," stated the May 7 briefing note. "As we await results of this audit, the government is reviewing funding provided to the organization in question to ensure related expenditures align with the provisions of the agreement signed by the recipient."The memo, titled Allegations Of Financial Misconduct By Black Business And Professional Association Board Of Directors, further emphasized, "Pending the results of the review, we will respond appropriately to maintain the integrity and transparency of our grants and contributions agreement."CBC Toronto reported on May 13 that records suggest the Association concealed over $800,000 in "related party transactions" with friends and associates of directors, which charities are required to disclose under the Income Tax Act. The Toronto-based BBPA, registered as a charity in 1983 to promote "equity and opportunities," has denied any wrongdoing, and no police charges have been filed."The board of directors is alleged to have used government grants and sponsorship donations to award contracts to companies linked to a former president and CEO," noted the briefing. The Department of Social Development is awaiting an independent auditor's report on the matter."The Government of Canada always takes allegations of this nature seriously," the note continued. "The government remains committed to operating with integrity and transparency when managing grants and contribution agreements and expects funding recipients to do the same. Should the government determine funds it provided directly to an organization were used inappropriately, it will respond using tools at its disposal."Funding for black business groups saw a significant increase in 2020 with the introduction of a $33 million federal loan guarantee program exclusively for Black entrepreneurs. "Economic empowerment is an essential part of justice," said the Prime Minister at the time. "It’s justice against a system that has locked out far too many Black entrepreneurs and denied them the same opportunities as other Canadians."Statistics Canada reported in 2019 that 1.2 million people in Canada identified as black, with about half, over 623,000, being immigrants from countries such as Jamaica, Haiti, Nigeria, Ethiopia, and Somalia. "Ottawa, Lethbridge, and Moncton had the fastest-growing black population in the country between 1996 and 2016," noted the report.