Madam Speaker, I am not a supersenior even though I just turned 60 years old a few weeks ago.
I am very pleased to take part in today's debate on transparency and the sound management of public funds. Let us not forget that just over 20 years ago, Canada was gripped by a scandal that still reverberates today and likely will for decades to come. Of course, I am talking about the infamous sponsorship scandal.
Thanks to the hard work and sharp instincts of journalist Daniel Leblanc and his whistle-blower, known as “MaChouette”, a shameful ploy employed by the Liberal Party of Canada was exposed. Instead of awarding real contracts, the sponsorship program became a mailbox where people could send cheques to themselves in order to launder that money for partisan political purposes. This was what sadly became known as the sponsorship scandal. This led to an inquiry commissioned by Liberal Prime Minister Paul Martin, a man who did the honourable thing by getting to the bottom of the matter. We know how that turned out. A total of $42 million of taxpayers' money was found to have been mismanaged by the heads of the sponsorship program, all to benefit the Liberal Party of Canada.
Twenty years later, we are witnessing another highly compromising situation for friends of the Liberal Party regime. I mentioned a $42‑million scandal just now, but what we are talking about today involves not $42 million, or $100 million, or $200 million, or $300 million, but $390,072,774 that was improperly awarded to friends of the regime. It is not me, a Conservative MP, saying that. It is the Auditor General who conducted an exhaustive study of the financial documents and concluded that over $390 million had been mismanaged.
This scandal began with a fund called the Sustainable Development Technology Canada fund, or SDTC. I am not a big fan of acronyms, but I may be using that one again. There were good intentions behind the creation of the fund in 2001. These stories always start with good intentions, but, as they say, the road to hell is paved with good intentions. The problem is that sometimes people take shortcuts. That is what happened with the Sustainable Development Technology Canada fund, and it is absolutely scandalous. The fund was set up to distribute about $100 million of taxpayers' money every year to companies so they could develop new technologies to reduce their environmental footprint and pollution and help the environment. Unfortunately, it started off well but then veered drastically off course.
It was created by the Chrétien government in 2001. It continued under Harper's Conservative government and under the current government led by the member for Papineau. I would say his name, but I am not allowed. Some people say it is disrespectful to call the Prime Minister “the member for Papineau”, but the Prime Minister is only here because there are people in Papineau who voted for him. In a few months, it is likely that people from Ottawa-Carleton will elect the Prime Minister. He will still be the MP for Carleton. That is why we must always refer to the Prime Minister and any minister or House officer by their riding name, because without their riding, they would not be here.
Back to the main point. The program looked good, and it was off to a good start. In fact, the program was definitely well on its way and, for nearly two decades, it had fruitful results, funding things like high-tech solutions for reducing greenhouse gas emissions and sustainable development technologies. It was created in 2001, as I said. In 2017, under the current Liberal government, the then auditor general conducted an investigation, an analysis, a study of this fund and gave it a very high passing grade.
It was off to a good start. It was good, and it was working. It worked until 2017. That is when the problems started. In 2019, the former minister of innovation, science and economic development, the Hon. Navdeep Bains, decided to appoint as head of this fund, as a member of its board of directors, someone who owned a company that was doing business with this fund. That is when the problems began. For years, the people managing the fund were not both clients and distributors, so they were not in a perpetual conflict of interest.
The former Liberal minister Navdeep Bains, a member of this Liberal government led by the member for Papineau, helped set the precedent that, unfortunately, went on for far too long. For the first time, the individual who was appointed president and CEO had a vested interest in this fund and was awarding herself contracts. Then, two more people were appointed. All in all, the Auditor General's investigation that I was talking about earlier found that this government had appointed nine directors to the board even though they were basically in a perpetual conflict of interest and their companies were receiving money from the fund.
Based on this information alone, the government should have immediately hit the brakes and stopped everything. Appointees should be independent of the fund, but they should know how to administer a fund. I will return to that a little later, but it raises a fundamental issue. People are not appointed to a board of directors to simply show up for meetings, cash their paycheque and walk out. They must be diligent and well versed in company management, but not the type to seek benefits for their own company. Unfortunately, more than nine board members had conflicts of interest.
In June 2019, Liberal minister Navdeep Bains appointed someone with a conflict of interest to the position of president and CEO. Others followed. I would be remiss not to mention the company Cycle Capital, whose chair was appointed to SDTC. In this specific case, the Auditor General's investigation found that approximately $250 million was mixed up in conflicts of interest.
Through the Auditor General's investigation, we also learned that the current Minister of Environment and Climate Change was once a lobbyist for that company, which in and of itself is completely fine. I have absolutely no problem with people working as lobbyists, as long as they do it right. Today, this man is the Minister of Environment and Climate Change. We are talking about nearly $250 million here. That is quite a lot of money, especially since the current minister consulted for the government 47 times a lobbyist. That casts doubt on the situation.
Then, there was a change of governance at the department when Mr. Bains announced that he was stepping down. As is his prerogative, the Prime Minister shuffled his cabinet and appointed the member for Saint-Maurice—Champlain, who, as we know, is an especially active guy for whom I have a lot of respect. Time will tell whether he makes any changes to his career. Let us say that a lot of people are watching him, myself included. This member became the minister responsible for the SDTC fund.
The first alarm bells went off publicly in September 2023. In a situation similar to that of “MaChouette”, who alerted journalist Daniel Leblanc to the sponsorship scandal, a whistle-blower decided to go public and tell the media how this fund was being mismanaged.
When he testified later, as part of the Auditor General's investigation, this whistle-blower said the following:
Again, if you bring in the RCMP and they do their investigation and they find something or they don't, I think the public would be happy with that. I don't think we should leave it to the current federal government or the ruling party to make those decisions. Let the public see what's there.
He also said the following:
Just as I was always confident that the Auditor General would confirm the financial mismanagement at SDTC, I remain equally confident that the RCMP will substantiate the criminal activities that occurred within the organization.
...
I think the current government is more interested in protecting themselves and protecting the situation from being a public nightmare. They would rather protect wrongdoers and financial mismanagement than have to deal with a situation like SDTC in the public sphere.
It was a whistle-blower who said these things in his testimony. This had a direct impact on why we are currently debating this question of privilege.
The first reports were made public and the whistle-blowers were there. In November 2023 the Auditor General launched an investigation. In June 2024, the report was tabled. It is a scathing report on the mismanagement of this fund. Over the five years that were reviewed by the Auditor General, which cover the partisan appointment of Navdeep Bains, a total of 82% of the contracts were illegitimately awarded. This is not some minor oversight, where a few things here and there fell through the cracks. No, it was 82% of the time. Things were done improperly four out of five times. It was either a conflict of interest, or people circumvented the rules of governance, or money was sent directly to the individual's own company. It does not work like that. This happened four out of five times, in 82% of the cases.
Here is a breakdown of what we are talking about. Ten ineligible projects received $58,784,613. In 96 cases that added up to $259 million, conflict of interest policies were not followed. In 90 cases, conflict of interest policies were not followed, and there was no assurance that the terms and conditions of contribution agreements were respected. That is a total of $390,072,774. There are no cents in that total, and I have to say there is no sense in any of this. We are talking about $390 million, 82% of cases, mismanagement in four out of five projects, and conflicts of interest.
The report also makes the current minister look very bad. The Auditor General concluded that he did not engage in enough oversight over what was going on in the fund. The minister, the member for Saint-Maurice—Champlain, keeps saying that he intervened as soon as he found out. I, a Conservative MP, am not the one saying that he did not do his job properly. The Auditor General is the one who found that he did not keep a close enough eye on what was going on. We are talking about $390 million. The sponsorship scandal was $42 million. That is a snapshot of the report's harsh condemnation of how poorly the fund was managed to the benefit of Liberal government cronies.
The Auditor General's investigation focused on management, not on potential criminal activity. As I referenced earlier, the whistle-blower was very clear during the meeting with the Auditor General. The Auditor General's job is to investigate management. It is up to the RCMP to determine whether criminal activities were involved. These are two completely different things. The whistle-blower was very clear that if the RCMP poked around a little, they would uncover criminal situations.
On June 10, the House adopted a motion so that documents could be sent to the RCMP. That is what we asked for and, unfortunately, that did not happen. Accordingly, when the House resumed its work, an order of the House was issued by the Chair requiring the government to produce the documents. That is what we want and that is why we need to get to the bottom of things.
A fund to protect the environment worked for 15-or-so years without any problem. When a new government arrived under the partisan auspices of the Liberal Party, things went off the rails. Four out of five projects were not processed correctly. What is more, $390 million of taxpayers' money was mismanaged. What is the result? The big losers are the companies that were counting on this money to do their work and truly serve this country by making investments in sustainable development technologies, as the name of this fund suggests. Ill-intentioned people across the way made sure this went completely off the rails. The first victims are the companies that want to invest in sustainable development technologies, in the environment.
In that regard, I would like to remind the House that, unlike what the Liberals have been saying ad nauseam, we, the Conservatives, are determined to tackle the challenges of climate change, which we recognize is real.
Just over a year ago, at the much-talked-about Conservative national convention in Quebec City, our leader, the member for Carleton, gave an important speech that is going to go down in Canadian history. In what we call the Quebec City speech, the member for Carleton described our vision for the environment, while recognizing that climate change is real and that we need to adapt to the effects of climate change. The ultimate objective is to reduce greenhouse gas emissions and pollution. This government believes that it can achieve that objective by imposing taxes. We will achieve that objective by taking direct and meaningful action to reduce pollution and create a better environment. That is the Conservative approach. It has four pillars.
The first pillar involves tax incentives for new technologies to reduce greenhouse gas emissions. Companies emit greenhouse gases. They know why they are doing that, how they are doing it and how to reduce those emissions. The government will give them tax incentives to invest where they need to and where the problem is so that they can reduce their greenhouse gas emissions.
The second pillar is giving a green light to green energy. Now more than ever, Canada needs wind, hydroelectric, geothermal, nuclear and solar power. We need to give these projects the green light, not put the brakes on them, which is exactly what Bill C‑69 does by requiring hydroelectric projects to undergo two environmental assessments. With us, it will be one project, one assessment. We need to speed up the process of implementing green energies.
The third pillar is the Canadian advantage. In Canada, we have all kinds of energy and all kinds of natural resources. To tackle climate change, we need to develop our Canadian potential. As long as we need fossil fuels, we will fight for Canadian fossil fuels. Some spout the fantasy that Canada will no longer produce oil; however, that will not reduce consumption, it will simply transfer production. Therefore, the big winner, if by some misfortune we stop producing oil in Canada, will not be Canada or the environment, it will be Qatar and Saudi Arabia.
The fourth pillar is obviously working hand in hand with first nations for development.
In closing, we are here today because the government refuses to comply with an order of the House. We are calling on the government to do the right thing, which is to comply with the House's order. Then we can find out what really went on. I began my remarks by talking about the $42-million sponsorship scandal. I would remind the House that we are now talking about a $390-million scandal. Speaking of the sponsorship scandal, we are still waiting for the Liberal Party to reimburse its dirty money.