National
Liberal Patronage: $330 Million in Questionable Allocations at Canada’s Green Tech Agency
What we learned from the committee is as clear as it is disturbing: Liberal ministers and appointees at SDTC have been funneling taxpayer dollars to friends under the guise of green technology funding.
In a damning House of Commons Public Accounts Committee (PACP) meeting, details emerged that Canada’s flagship “green” agency, Sustainable Development Technology Canada (SDTC), funneled hundreds of millions of taxpayer dollars into companies connected to Liberal insiders. An Auditor General’s report shed light on the staggering scale of this apparent Liberal patronage scheme, revealing that $330 million was awarded to projects with board members tied to the SDTC itself. Another $59 million found its way into initiatives that didn’t even meet SDTC’s green-tech mandate, fueling accusations of political favoritism and cronyism within Prime Minister Trudeau’s government.
Opposition MPs, led by Conservatives Rick Perkins and Michael Cooper, along with Bloc MP Nathalie Sinclair-Desgagné and NDP MP Richard Cannings, took turns dissecting former Liberal Minister Navdeep Bains’ role in appointing Annette Verschuren as SDTC’s board chair. Testimony from the hearing, corroborated by statements from SDTC’s CEO, revealed that Bains reached out to Verschuren multiple times about her appointment, despite his claims of following an “open, transparent, and arm’s-length” process. Yet, when grilled by the opposition, Bains repeatedly invoked “process” and shifted blame onto the Privy Council Office (PCO), claiming he merely encouraged a diverse pool of applicants.
But the evidence doesn’t line up with the former minister’s narrative. Witnesses testified that Assistant Deputy Minister Noseworthy had informed SDTC CEO Leah Lawrence of Verschuren’s appointment even before it was finalized, indicating a behind-the-scenes process driven by Liberal influence. These revelations throw the credibility of the appointment process into question, suggesting it may have been less about selecting qualified candidates and more about ensuring loyal Liberal allies held key positions.
The committee’s findings, sparked by the Auditor General’s investigation, expose a serious issue of conflicts of interest within SDTC’s funding operations. This is a public agency with a mission to advance sustainable development, yet the Liberal government’s management seems to have turned it into a cash machine for insiders. The Auditor General’s report has revealed a troubling pattern of funding allocations going to companies with board connections, undercutting the government’s credibility on environmental stewardship and transparency.
What we learned from the committee is as clear as it is disturbing: Liberal ministers and appointees at SDTC have been funneling taxpayer dollars to friends under the guise of green technology funding. This isn’t just a lapse in oversight; it’s a systematic approach that prioritizes insider deals over real environmental progress, putting the Trudeau government’s commitment to transparency and sustainability squarely in doubt.
Opposition MPs Call Out Lack of Accountability
During this pivotal Public Accounts Committee meeting, opposition MPs went on the offensive, exposing a deep pattern of evasion and mismanagement in how taxpayer dollars were funneled into the hands of Liberal insiders under former Liberal Minister Navdeep Bains. Conservative MPs Rick Perkins and Michael Cooper led the charge, calling out Bains’ deflections and demanding straight answers. They pointed to the $330 million awarded by Sustainable Development Technology Canada (SDTC) to projects connected to its own board members, questioning why this blatant conflict of interest was permitted under Bains’ watch.
Perkins and Cooper’s approach was blunt. They challenged Bains on his repeated reliance on vague, bureaucratic defenses, pointing out that as minister, he had a duty to exercise oversight on SDTC’s operations. Perkins in particular questioned Bains about his involvement in appointing Annette Verschuren as chair of SDTC’s board. Despite Bains’ claims that he couldn’t “recall” specific discussions with Verschuren, evidence surfaced that he contacted her multiple times prior to her appointment. For Perkins and Cooper, this level of involvement, coupled with Bains’ repeated refusal to acknowledge conflicts of interest within SDTC, painted a damning picture of a Liberal minister who prioritized insider appointments over accountability to Canadian taxpayers.
Bloc MP Nathalie Sinclair-Desgagné and NDP MP Richard Cannings focused their questioning on the government’s failure to ensure responsible oversight of SDTC’s environmental funds. Sinclair-Desgagné highlighted Bains’ “arm’s-length” defense as an excuse, given the testimony indicating that senior officials had preemptively informed SDTC’s CEO about Verschuren’s appointment, suggesting an internal network of influence rather than a transparent, merit-based process. She called out the apparent detachment of Bains from SDTC’s operations, underscoring how his office either ignored or bypassed red flags.
NDP MP Cannings raised critical points about the hypocrisy of a government that claims to champion green innovation while allowing SDTC to devolve into a taxpayer-funded favor bank. Cannings pointed out that SDTC’s funds, meant for real environmental progress, were instead granted to projects with questionable ties and little sustainability impact. For Canadians concerned with climate action, Cannings’ questions laid bare the truth: the Liberal government’s commitment to “green” initiatives is far weaker than their dedication to keeping insiders funded.
This unified front by Conservative, Bloc, and NDP MPs highlighted the same disturbing trend: a Liberal government that talks about accountability and climate action but delivers neither, choosing instead to use taxpayer funds to benefit those closest to the party.
Bains’ Defense: Hiding Behind “Process” and Arm’s-Length Excuses
When faced with tough questions on SDTC’s mismanagement, former Liberal Minister Navdeep Bains clung tightly to procedural defenses, repeatedly deflecting responsibility to the Privy Council Office (PCO) and downplaying his role as minister. Bains insisted that the PCO alone was responsible for vetting board members, suggesting his involvement was “hands-off” and strictly procedural. Yet, opposition MPs saw right through this tactic, viewing it as a clear attempt to dodge accountability.
Throughout the hearing, Bains deflected pointed questions by portraying SDTC’s oversight as out of his hands, claiming his office only followed standard processes. He avoided addressing why his appointee, Annette Verschuren, landed the SDTC board chair role despite potential conflicts of interest, with millions later flowing to companies linked to board members. By painting himself as a mere bystander to PCO’s vetting process, Bains sidestepped responsibility for ensuring taxpayer funds went to projects with genuine environmental merit, rather than those benefiting Liberal insiders.
When pressed about specific discussions surrounding Verschuren’s appointment, Bains leaned on what can only be described as selective memory. Asked about his personal involvement, he claimed he “couldn’t recall” multiple key conversations — a response that only raised eyebrows among committee members. Testimonies from SDTC’s CEO and other witnesses indicated Bains contacted Verschuren several times, yet his failure to acknowledge this directly cast doubt on his narrative of impartial oversight.
Opposition MPs argued that Bains’ procedural evasions were thinly veiled attempts to cover for what looks like a Liberal patronage pipeline. His refusal to answer clearly and his dependence on “I don’t recall” responses drew sharp criticism, with opposition leaders labeling it as a standard Liberal tactic to avoid admitting responsibility. The result? A testimony that shed little light on how SDTC was run but spoke volumes about the government’s willingness to dodge accountability whenever insiders are involved.
Inclusion and “Transparency” Won’t Save Liberals from Accountability
Throughout the Public Accounts Committee hearing, Liberal MPs Jean Yip and Francis Drouin took on a clear mission: protect Navdeep Bains at all costs. Instead of addressing the mountain of allegations around SDTC’s blatant cronyism and taxpayer waste, Yip and Drouin turned the hearing into a platform for Liberal talking points, spinning tales of “transparency” and “diversity” that conveniently dodged the actual corruption in front of them. Let’s be clear: hiding behind “inclusivity” doesn’t make the Liberals less corrupt, nor does it absolve them of responsibility when taxpayer money is at stake.
Jean Yip’s questioning gave Bains endless opportunities to recite the “open and competitive” process that supposedly led to Annette Verschuren’s appointment as SDTC board chair. Yet she never asked about Verschuren’s Liberal ties, or why so many millions were awarded to companies connected to SDTC board members. Yip’s focus on “inclusion” and “diverse voices” on the board was a distraction — a slick attempt to shift attention away from the Auditor General’s findings and avoid the reality that those “diverse voices” are well-connected Liberal insiders benefiting from your money.
Francis Drouin was right there to keep the narrative going, pivoting to SDTC’s supposed “green mandate” and giving Bains a platform to tout his government’s commitment to sustainability. But let’s call it what it is: a cover. By talking up sustainability and diversity, Drouin helped Bains avoid explaining why SDTC mismanaged $330 million on projects tied to its own board members, and why an additional $59 million went to ineligible initiatives. This wasn’t accountability — it was damage control, plain and simple.
Yip and Drouin’s interventions were textbook Liberal tactics: deflect, divert, and dilute the discussion. They may have repeated “transparency” and “inclusivity” all they wanted, but these buzzwords are nothing more than a smokescreen for taxpayer-funded favoritism. For Canadians watching, it was an unmistakable display of damage control — the Liberals doing everything they can to dodge real accountability while your tax dollars keep flowing to their inner circle.
Broader Implications: A Systemic Liberal Culture of Avoiding Accountability
The revelations from this Public Accounts Committee meeting show us something far darker than the mismanagement of a single agency. They expose a deeply entrenched system where Trudeau’s Liberal government doesn’t just waste taxpayer money — they use it to reward political cronies and shield insiders from accountability. This isn’t just negligence; it’s the Trudeau Swamp in action, a well-oiled machine funneling your money to friends and allies under the thin cover of bureaucratic “process.”
At the center of this scandal is a strategy the Liberals have perfected: hide behind procedural jargon and “arm’s-length” defenses to dodge any responsibility. The moment former Minister Navdeep Bains took the stand, you could see the tactics at work. Facing questions on how Sustainable Development Technology Canada (SDTC) turned into a cash cow for Liberal insiders, Bains and his fellow Liberal MPs defaulted to the same tired script — insisting every questionable allocation, every insider appointment, was just “routine process.” They claim “independence,” they claim “transparency,” but the evidence paints a different picture: Liberal insiders filling key roles and pulling the strings to channel your money into their pockets.
This scandal isn’t an isolated incident. It’s a glimpse into a troubling pattern, where taxpayer funds — meant for genuine public service — have become Trudeau’s political currency, up for grabs to those with the right connections. And make no mistake: Navdeep Bains’ refusal to answer real questions isn’t just about protecting himself. It’s about preserving a whole Liberal network that thrives on government patronage, hidden behind bureaucratic red tape. The Liberals have turned “process” into a shield, protecting ministers from facing the consequences of their actions.
The stakes couldn’t be higher for Canadians. This isn’t just about misusing a few dollars — it’s about a government prioritizing loyalty over public good, rewarding insiders while millions of Canadians wonder where their taxes are actually going. Under Trudeau’s watch, the promise of accountability has become a punchline, replaced with cronyism and evasion. So here’s the real question: Is Canada governed for its citizens, or for an elite network of well-connected Liberal insiders? Because after this committee meeting, the answer seems painfully clear.
Energy
Mistakes and misinformation by experts cloud discussions on energy
From the Fraser Institute
By Jason Clemens and Elmira Aliakbari
The new agreement (MOU) between the Carney and Alberta governments sets the foundation for a pipeline from Alberta to the British Columbia coast, at least conceptually. Unfortunately, many politicians and commentators, including the bureau chiefs for the Globe and Mail and Toronto Star, continue to get many energy facts wrong, which impairs the discussions of how best the country can and should move forward to capitalize on our natural resources.
For example, commentors often wrongly describe the tanker ban on the west coast (C-48) as a general ban on oil tankers. But in reality, the law only applies to tankers docking at Canadian ports. It does not and cannot prevent tankers from travelling the west coast so long as they’re not stationing at Canadian ports. This explains the continued oil tanker traffic in the northwest region for tankers docking in U.S. ports in Alaska. Simply put, there is not a general tanker ban on the west coast.
Commentators also continue to misrepresent the current capacity on the expanded Trans Mountain pipeline (TMX). According to the Canada Energy Regulator (CER), the average utilization of the TMX since it came online in June 2024 is 82 per cent (reaching as high as 89 per cent in March 2025). So, while there’s some room for additional oil transportation via TMX, it’s nowhere close to the “doubling” being discussed in central Canada. Critically, though, according to the CER, from “June 2024 to June 2025, committed capacity was effectively fully utilized each month, averaging 99% utilization.”
Similarly, there’s a misunderstanding by many in central Canada regarding the potential restart of the Keystone XL pipeline, which apparently President Trump is keen on. Keystone would not diversify Canada’s exports because while oil does make its way down to the southern U.S. where it can be exported, the actual sale of Canadian oil is to U.S. refineries, so our reliance on the U.S. as our near-sole export market would continue unless a west and/or east coast pipeline is developed.
There also continues to be an artificial and costly connection made between Ottawa removing the arbitrary emissions cap on greenhouse gases by the oil and gas sector and the approval of a new pipeline with the proposed Pathways carbon capture project, which is a collaboration between five of Canada’s largest oil producers. This connection was galvanized in the MOU.
The idea behind the project is to reduce (conceptually) the amount of greenhouse gas (GHG) emitted from oil extraction and transportation projects linked with Pathways. The Pathways project produces no economic value or product—it simply collects and stores GHG emissions—and reports suggest the total cost for the first phase of the project will reach $16.5 billion.
Should Canadians care about adding costs related to GHG mitigation? There are several factors to consider. First, Canada is already a low-GHG emitting producer of oil. According to the Carney government’s first budget (page 105, chart 1.5 which ranks the world’s 20 top oil producers based on their GHG emissions per unit of output), Canada already ranks 7th-lowest in terms of emissions. And more importantly, it’s lower than every country—Venezuela, Russia, Iraq and Mexico—that produces a similar type of oil as Canada. Any resources spent further reducing GHG emissions via carbon capture will result in small incremental gains contrasted with large costs (again, at least $16.5 billion). A number of analysts have already raised concerns about the investment and competitiveness implications of increasing the cost structures for Alberta producers.
Second, according to the federal government, in 2022 Canada produced 1.4 per cent of global GHG emissions, and the oil and gas sector produced roughly one-quarter of those emissions. In other words, if Canada eliminated all GHG emissions from the oil sector via carbon capture, the process would consume vast amounts of scarce resources (i.e. money) and result in a nearly undetectable change in global GHG emissions. One can only conclude that this is much more about international virtue-signalling than the actual economics and environmental implications of Canada’s potential energy projects.
At a time when Canada is struggling with crisis levels of private business investment, falling living standards and as the Bank of Canada described, a break-the-glass crisis in productivity growth, it’s clearly not wise to spend tens of billions of dollars on projects that might make politicians and bureaucrats feel better and enable them to use near Orwellian language like “zero-emissions oil” but that actually deliver almost no detectable environmental benefits.
To borrow our prime minister’s favourite phrase, kickstarting Canada’s oil and gas sector is the easiest way to catalyze economic growth given our vast energy reserves, know-how in the sector, and high productivity. To do so, we need a national dialogue rooted in facts.
Energy
Ottawa and Alberta’s “MOU” a step in the right direction—but energy sector still faces high costs and weakened competitiveness
From the Fraser Institute
By Tegan Hill and Elmira Aliakbari
The Memorandum of Understanding (MOU) between Alberta Premier Danielle Smith and Prime Minister Mark Carney, which includes a new oil pipeline to BC’s northwest coast, offers some hope for Canada’s energy future. While this agreement is a step in the right direction, it puts Alberta’s energy sector on the hook to secure access to new markets while facing higher costs and reduced competitiveness.
Earlier this year, Smith demanded then-newly elected Prime Minister Carney repeal nine “bad laws” stifling oil and gas investment, which has collapsed by nearly 61 per cent in the province since 2014, falling from $64.7 billion to $25.4 billion in 2024 (inflation-adjusted).
One key policy on the list was the proposed federal emissions cap, which would have applied exclusively to the oil and gas sector. According to the MOU, Canada will not move forward with the cap, which is a welcome change. Indeed, multiple analyses showed that the cap would have inevitably resulted in a production cut, costing the economy billions and resulting in tens of thousands of job losses. And, with oil and gas demand continuing to climb, the cap would have shifted production to other countries with lower environmental and human rights standards such as Iran, Russia and Venezuela.
Scrapping the Clean Electricity Regulations (CER) was also one of Smith’s demands. While the MOU states that “Canada and Alberta remain committed to achieving net zero greenhouse gas emissions by 2050”, the CER as it applies to the province will be suspended for the time being. Again, this is a critical and positive change for a province where 85 per cent of its electricity comes from fossil fuels—a larger share than nearly any other province. (For perspective, in Quebec, over 85 per cent of its electricity comes from hydro.) The Alberta Electric System Operator (AESO) estimates it would cost $44 to $54 billion to decarbonize Alberta’s grid by 2041—a 30 to 36 per cent spending increase—costs that ultimately fall on consumers.
A third key policy on Smith’s list of nine bad laws was repealing Bill C-48, which banned large oil tankers off BC’s northern coast from docking in Canadian ports. According to the MOU, there may be a limited exemption to the ban. Specifically, it states that to enable the export of bitumen there may be an “appropriate adjustment.” The law effectively prevents Canadian producers from accessing Asia and other international markets. Crucially, the legislation applies only to tankers docking in Canadian ports—U.S. and foreign tankers continue to operate freely in the same waters accessing U.S. ports. In other words, the law exclusively hinders Canada’s competitiveness—creating a carve out for one pipeline will not fix this problem.
All of these policy changes or exemptions are conditional on stronger industrial carbon pricing and support for the massive multibillion-dollar Pathways project–a 400-kilometer pipeline transporting carbon trapped at oil facilities to an underground storage facility near Cold lake Alberta and led by a group of Canada’s five largest oil companies. Earlier this year, Alberta froze its industrial carbon tax at $95 per tonne through 2026, but the MOU states that the system will ramp up to a minimum price of $130/tonne. This will increase the cost of producing, processing and transporting oil, at a time when a surge in global oil production and downward pressure on oil prices is expected. Ultimately, this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States, that do not have comparable carbon pricing in place.
The agreement is also conditional on the $16.5 billion (minimum estimate) Pathways project to capture, sequester and store carbon underground. Adding carbon capture technology would increase production costs by roughly US $1.2-$3 per barrel for oil sands mining operations and US $3.6-$4.8 for oil sands facilities that use steam. These higher costs further erode the province’s competitiveness and won’t help in attracting private sector investment.
The memorandum of understanding makes some important strides for Canada’s energy future and is certainly an improvement on the status quo, but it still leaves Alberta’s energy sector facing higher costs and weakened competitiveness, and more broadly doesn’t remove the many impediments to large-scale development of our oil sector.
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