Public Accounts Committee on Oct. 9th, 2024

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

Did Mr. Noseworthy sit on the panel or help choose the panel members?

[Navdeep Bains]

It was led by the Privy Council Office and included the relevant departments.

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

All right. Again, did Mr. Noseworthy sit on the panel or help choose the panel members?

[Navdeep Bains]

I don't recall the specific members of the panel. I know the Privy Council Office led the panel.

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

Is there a way to get that information? If so, can you please send it to the committee?

[Navdeep Bains]

Are you asking about the panel composition?

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

Yes, please.

[Navdeep Bains]

My understanding is that the Privy Council office will be speaking on this matter, and I believe they will have the relevant information you have requested.

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

I'm sure it's not news to you that Mr. Noseworthy was personally involved in a conflict of interest by virtue of his friendship with Ms. Verschuren. Consequently, favouritism may have played a part in her selection and the selection of the board of directors. As the minister in charge, you normally would see that and take steps accordingly.

[The Chair, Conservative, John Williamson]

Ask your question, please.

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

Here's my question.

You announced with great fanfare in January 2020 that you were investing $46.3 million in 14 start-up companies. If you can't recall things that happened eight years ago, perhaps you'll recall things that happened four years ago. Five of those 14 start-ups received pandemic support without being individually assessed. That funding wasn't part of the contribution agreement, and one company was not eligible for it. Actually, nearly half of the start-ups you were so proud to fund were not eligible.

Does knowing that today bother you, or do you have absolutely no regrets about everything you did while you were the minister responsible for a situation like that?

[Navdeep Bains]

Thank you for your question.

The decisions that were made by the management and the board were independent. As I have mentioned, it's an arm's-length organization, and there are clear rules in place to determine how these funds should be disbursed. Those rules needed to be followed.

[The Chair, Conservative, John Williamson]

Thank you very much.

Mr. Desjarlais, you have the floor for six minutes, please.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you very much, Mr. Chair.

Thank you very much, Mr. Bains, for being present for this important work.

As you're likely aware, the work of public accounts is to look at Auditor General's reports. The Office of the Auditor General is an independent office that has found a way to verify specific instances of very serious issues related to public trust and related to the accountability that's needed for Canadians in regard to potential breaches of the act, which I hope you can help clarify.

The overall message in the Auditor General's report, on page six, is that they “found significant lapses in Sustainable Development Technology Canada’s governance and stewardship of public funds”.

It goes on to suggest, “The board of directors of Sustainable Development Technology Canada did not ensure that the foundation complied with its enabling legislation.”

Mr. Bains, are you aware of the enabling legislation of SDTC?

[Navdeep Bains]

Are you referring to the legislation that was passed by the House of Commons?

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Yes.

[Navdeep Bains]

That is the act that ultimately determines the role of the minister to appoint members to Sustainable Development Technology Canada.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Who was the minister between 2015 and 2021?

[Navdeep Bains]

As I stated in my opening remarks, in November 2015, I took on the role at ISED, and I left on January 12, 2021.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you for that, Mr. Bains.

Would you agree that you were the minister responsible for compliance with the act during that period of time?

[Navdeep Bains]

As I indicated in my opening remarks, the role of the minister is to appoint seven of the 15 board members to this organization, which is independent and at arm's length.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Just so that people are aware, did you, in fact, appoint those members? Did you appoint the satisfactory number required by the board?

[Navdeep Bains]

I believe that there were a number of appointments that were made during my tenure.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Were you aware that the board had supported reducing that number to two?

[Navdeep Bains]

Could you repeat that in terms of the board—