Evidence of meeting #152 for Public Accounts in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was sdtc.
A video is available from Parliament.
As an Individual
I helped work on an industry committee with.... God, I forget the name of the minister in the Wynne government here in Ontario a number of years ago.
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
What did you do with the Wynne government? What was your role and your capacity?
As an Individual
I was advising on the economy and finding ways to increase productivity and employment.
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
Now, multiple witnesses, including officials in the former ministry of industry, have stated it is customary for departments to send out mass emails to stakeholders once the PCO posts appointment openings. The department stated that it likely sent out such an email.
Given your history working with the Government of Canada, as you previously stated, and even serving more recently on the clean-tech strategy table, do you remember receiving an email once the position was posted online, around September 2018?
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
You don't recall whether you had such an email.
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
Okay. If you don't recall, could you come back to the committee in writing with a response, maybe check your notes and see?
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
Okay.
The Ethics Commissioner has made it clear that this was a technical violation of the act. How much would you have personally benefited from any of the funding that was approved by the board in which you had a conflict and did not recuse yourself? What was your total stake in those approved projects?
As an Individual
Other than the project that I declared at the time of my chairmanship, I was not involved. I had no financial involvement in any project that came before SDTC.
Conservative
The Chair Conservative John Williamson
That is the time, Ms. Bradford.
Ms. Sinclair‑Desgagné will have the floor next.
Ms. Verschuren, I don't know if you speak both languages, but the next member is going to speak in French, so just be sure your translation is on, if necessary.
Ms. Sinclair‑Desgagné, the floor is yours for six minutes.
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
Thank you, Mr. Chair.
Ms. Verschuren, thank you for being with us. You have testified before other parliamentary committees but this is your first time testifying at this committee regarding the important study on SDTC.
Throughout your career, you have devoted a great deal of time to helping companies grow, whether in the field of sustainable development or in other areas. In SDTC's case, we think it's a shame that the foundation is disappearing, because it funded sustainable development and green technology projects that are very useful for the future of Quebec and Canada.
Having said that, I'd like to ask you a few questions in quick succession, and I'd be grateful if you could give me some brief answers.
Are you an investor in Sandpiper's venture capital fund?
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
Sandpiper invests in companies such as DeNova and Coloursmith.
Is that correct?
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
These companies are part of the Verschuren Centre, and they also receive funding from the Verschuren Centre.
Is that correct?
As an Individual
The Verschuren Centre is a not-for-profit organization through which SDTC provided funds to entrepreneurs or companies associated with it. I don't recall these organizations from my tenure.
As a matter of fact, I think I can check—
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
Apologies for interrupting.
I will ask my question again.
DeNova needed a bioreactor. In fact, it contributed $500,000 to the bioreactor development project. This company is therefore linked to the Verschuren Centre.
Is that correct?
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
Ms. Verschuren, I'll summarize. If I understand correctly, you have personal interests in a venture capital investment fund that invests in growing companies, which also receive public funding from the government.You also have private interests in the Sandpiper investment fund.
When you said you had no financial ties to companies that could receive funding through the Verschuren Centre, did you disregard the possibility that it could simply be done indirectly, through the Sandpiper fund?
As an Individual
I would have to go and take a look back at the timing of when I invested in that Sandpiper fund, but I checked at the time and there were no conflicts in the Sandpiper fund that SDTC funded.
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
I meant more generally, not just in the case of SDTC. A conflict of interest can also arise from exercising a power, for example when becoming chair of a board of directors.
Excuse me, Ms. Verschuren, but there are people speaking behind me.
Mr. Chair, could you please intervene?
Conservative
Bloc
Nathalie Sinclair-Desgagné Bloc Terrebonne, QC
When you assumed the presidency of the board of directors, you were able to indirectly obtain funds for various projects. You invested in companies that were in your investment portfolio, such as DeNova. You invest in the Sandpiper fund, and these companies are part of Sandpiper's portfolio. That means that these companies are indirectly part of your personal portfolio. I'll come back to that.
While you were president of the board of directors, there was one bioreactor development project in particular. If I understand correctly, the project was needed to ensure growth at DeNova, which is part of the Sandpiper portfolio. You submitted an application for the bioreactor project to SDTC. Based on the documents I have here, the application for funding was for $2.5 million.
The application was obviously deemed to be inadmissible, because there was a huge conflict of interest. However, Mr. Rahme, for his part, asked all his teams to make every effort to secure you funding anyway. The amount you received for this project at the Verschuren Centre was practically $11 million.
I can give you the details. Nova Scotia granted you $2.5 million in funding. The Atlantic Canada Opportunities Agency, or ACOA, whose senior advisor was Andrew Noseworthy, awarded you $2 million. NGen gave you $2.3 million, which was subsidized by Innovation, Science and Economic Development Canada. That's nearly $7 million.
In 2023, the Forestry Innovation Transition Trust, which was subsidized by the government of Nova Scotia, gave you $925,000. ACOA gave you another million dollars. Finally, the Canadian Food Innovation Network gave you $1.1 million, which was subsidized by the Strategic Innovation Fund. This fund was created by Innovation, Science and Economic Development Canada.