Annette Verschuren, former Chairperson of Sustainable Development Technology Canada (SDTC), a foundation that provides funding for clean technology projects, has been found to have contravened the Conflict of Interest Act, according to a report released by Canada’s Conflict of Interest and Ethics Commissioner on July 24, 2024. The report, prepared by Commissioner Konrad von Finckenstein, determined that Ms. Verschuren’s participation in SDTC board decisions related to funding for companies she was affiliated with constituted a conflict of interest.
The examination focused on Ms. Verschuren’s conduct while serving as SDTC’s Chairperson from June 2019 to November 2023. During this period, she also held positions on the boards of two non-profit business accelerators, the Verschuren Centre and MaRS Discovery District, and served as Chair, CEO, and majority shareholder of NRStor Inc., a company specializing in energy storage projects.
The report highlighted two specific instances of conflict of interest:
- Seed Funding Decisions: The SDTC Seed funding program, launched in 2019, relied on nominations from approved accelerators like the Verschuren Centre and MaRS. Ms. Verschuren abstained from voting on projects nominated by these organizations but did not fully recuse herself from the decision-making process, as required by the Act and SDTC’s own conflict of interest policy. Although she declared her potential conflicts and abstained from voting, the report found that her abstention was insufficient, as she should have recused herself entirely from these discussions.
- COVID-19 Emergency Relief Payments: In March 2020 and 2021, the SDTC board approved emergency funding for companies, including NRStor. Ms. Verschuren participated in these decisions, despite her financial interest in NRStor. The report determined that these payments directly benefited NRStor and, therefore, constituted a private interest for Ms. Verschuren. Despite relying on legal advice that suggested her actions were acceptable, the report concluded that Ms. Verschuren should have recused herself from these decisions.
The Commissioner acknowledged that Ms. Verschuren often went beyond the Act’s requirements by disclosing and recusing herself from perceived conflicts. However, the report emphasized that the inconsistencies in SDTC’s decision-making processes, coupled with flawed legal advice, led to the violations.
The findings of the report raise concerns about the governance and transparency of public funding decisions. SDTC’s mission to support sustainable development technologies is crucial for Canada’s economic and environmental future. The public has a vested interest in ensuring that funding decisions are made fairly and without undue influence from individuals with personal stakes in the outcomes.
A separate report published by the Auditor General of Canada on June 4, 2024, also identified issues related to SDTC’s management of public funds and conflicts of interest. The audit found instances where SDTC approved funding for ineligible projects and failed to adhere to conflict of interest policies.
These reports, taken together, point to systemic problems within SDTC that require immediate attention to restore public trust and ensure responsible stewardship of taxpayer dollars.
Timeline of events:
