A report from B.C.'s Auditor-General has cleared the accounting company administrating public funds of conflict-of-interest allegations.
Michael Pickup said the review found no evidence that MNP influenced two grant programs in the Ministry of Energy, Mines and Low Carbon Innovation in favour of clients for which it was also writing grant applications.
"MNP was the program administrator," Pickup said. "They didn't score proposals or make funding decisions. We confirmed that all decision points in the award process required and received ministry approval."
B.C.'s provincial legislature in April unanimously tasked Pickup to review MNP's role in the administration of the Advanced Research and Commercialization and the Commercial Vehicle Innovation Challenge programs, funded through the carbon tax. The review came after Merritt-based Edison Motors — B.C.’s only company manufacturing electric semi-trucks — had first raised concerns about MNP’s role in the process.
The company said that MNP had requested a 20 per cent "success fee" to help them write grant applications for grant programs it administers. According to Pickup's report, the company "implied MNP was running a kickback scheme by approving grant funding for its clients in exchange for the success fee while rejecting applications from those who refused to participate."
The allegation also raised questions about MNP's general role in writing for companies applying for those funds, how it came to contact potential clients and the ministry's role in identifying and managing conflict of interests.
Pickup said MNP did not write grant applications for any of the 71 companies that had responded to his office's outreach, including Edison Motors. MNP did not write or offer to write Edison's applications, he added.
Pickup also said that his investigation found no evidence that MNP used ARC program information to contact the company.
"We reviewed more than 5,200 emails and found no evidence that MNP's grant administration staff attempted to solicit business. We did learn that MNP offered grant writing services to three (program) applicants including the company that raised the allegation. However, the offer was for grant programs that MNP did not administer and we found no evidence that MNP used ARC or CVIC information to contact these applicants."
Pickup also said that the ministry addressed conflict-of-interest allegations once they had arisen.
Chace Barber, co-founder of Edison Motors, expressed frustration with the report's findings. He said it did not look into MNP's internal conflict-of-interest management, or its administration of non-government grant.
He added that the report's focus was too narrow in focusing on the ARC and CVIC programs.
"I never said they (MNP) wanted to write that grant," Barber said. "My whole point was that they (MNP) reached out to us after we applied and asked to write grants. They said how they administer the government grants and we would likely be more successful with our grants if they hired us."
"Our main complaint was that we felt pressured into signing up because of how much power they had in the program and that wasn't even talked about," Barber said. "They (MNP) control absolutely everything and told us we would have better chances of receiving funding if we were with them."
B.C.'s Energy Minister Josie Osborne said she welcomed the auditor's findings. She needs British Columbians need to be able to have confidence that public funds are being administered appropriately and that grant programs are fair for everyone. "(That) is exactly what the auditor general found," she said.
When asked whether she feels the auditor-general exonerated her ministry, Osborne said the auditor-general did a lot of work in a short amount of time.
"It's very re-assuring that the integrity of the program is re-affirmed, that MNP had no role in evaluating grant applications, that the funding decisions were made by the ministry, all based on recommendations from an independent technical review panel."
The report, however, points out that instructions for applicants — drafted by MNP and approved by the ministry — provided inaccurate information about who was responsible for funding decisions.
"I'm very glad that the (auditor-general) and his office caught that," Osborne said, adding that her ministry will fix the language as quickly as possible. She promised that applicants will have the clearest information possible.
Of course, this catch also means that any concerns about MNP's involvement might ultimately boil down to a communication failure.
While Barber acknowledged this possibility, he nonetheless questioned MNP's involvement in the grant administration process.
Osborne's ministry had halted MNP's administrative involvement during the review. Osborne said she expects MNP's role to resume "very shortly" in noting that she looks forward to seeing innovative companies come forward with their ideas.
Since 2018 through to-date, 32 applicants received a grant total of $29.3 million through both programs with government having budgeted some 35.5 million. The total budget for both programs will hit $50 million by 2025.
Black Press Media reached out to MNP for comment, but did not receive a reply.
