Information & Ethics Committee on March 15th, 2021

[Marc Kielburger]

Mr. Fortin, that request was made because at the last minute during the contract negotiations we were requested to take full liability for 40,000 young people as part of the program, during a pandemic. The Government of Canada asked us to take full liability for that program.

We expressed our concern, which was a last-minute negotiation piece that had not been brought up previously, and as a result we worked with our board of directors and our counsel to suggest that WE Charity Foundation—which is a foundation, to be really clear—take on the project. We explained that clearly to ESDC, the government agency, and they accepted.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

To your knowledge, did the federal government make any inquiries into the WE foundation's financial situation?

[Marc Kielburger]

You'd have to ask that question, sir, to ESDC. We were very clear with ESDC why we felt it was necessary to put the contract in that foundation body because of the request to take on the liability for 40,000 young people during the pandemic, and it was a last-moment request during the contract negotiations.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Is it fair to say that the WE foundation had no financial history when it signed the contract with the federal government?

[Marc Kielburger]

The contract was with the WE Charity Foundation specifically because of liability, but it was going to be WE Charity that was going to implement the program and of course had very significant—

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Sorry, Mr. Kielburger. I don't mean to cut you off, but I have a limited amount of time.

I asked whether it was fair to say that the WE foundation had no financial history when it signed the contract with the federal government.

[Marc Kielburger]

Sir, that's correct, but the reason—again—we signed the contract with that entity is because of the request from ESDC to take on liability, but—

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

I see. Thank you. You explained that, and I understood.

Did the WE foundation go on to have contracts or dealings with any organization other than the federal government for the purposes of the Canada student service grant program?

[Marc Kielburger]

Yes, we ensured that there was proper insurance that would be part of the program, of course, as we shared in our FINA testimony, and I believe you were part of that FINA conversation that we had back in July. In addition, of course, we were also working in partnership, before the politics ended this amazing initiative, with about 80 non-profits.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

All right.

What is the WE foundation's financial situation today?

[Marc Kielburger]

Are you inquiring about WE Charity or the WE Charity Foundation?

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

I'm talking about the WE foundation.

[Marc Kielburger]

Sir, there seems to be a problem with the translation. Are you requesting this regarding the WE Charity or the WE Charity Foundation?

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Mr. Chair, I can't be any clearer. I am talking about the WE foundation. Is there an issue with the interpretation?

[Craig Kielburger]

My apologies. We can hear you clearly now. Thank you.

The WE Charity Foundation returned in total all the funds transferred to it from the federal government, and WE Charity absorbed the $5-million loss—

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Thank you, Mr. Kielburger, but that wasn't my question.

Is the WE foundation still operating today? Where do things stand with the foundation?

[Craig Kielburger]

It is in the process of closing down in Canada, but it is still legally operational until it's closed.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Thank you.

I gather, then, that no member of the federal public service did any due diligence on the WE foundation's financial situation before the contract was signed, to your knowledge.

[Marc Kielburger]

Again, I understand your question. Please feel free to ask ESDC that question. We were very transparent with them.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

All right, but in your opinion, to your knowledge, were any inquiries made? Did they ask you any questions about it?

[Marc Kielburger]

To my knowledge [Technical difficulty—Editor].

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

To your knowledge, “no”...?

Is that correct?

[Craig Kielburger]

All that we know is we answered every question asked of us by ESDC, and it depends on your definition, because we don't know what they did on their own, separately, what research or background researching was done.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Did they ask you any questions about the WE foundation's financial situation?

Did anyone in the federal government, either an official or an employee, ask you how much the WE foundation had in funding and what its financial history was?

[Marc Kielburger]

We created proper insurance and we were very clear with that, for ESDC. It was in the tens of millions of dollars.