The B.C. government has ordered the auditor general to investigate MNP, a private accounting company it hired to administer clean technology grants on its behalf.
The investigation follows allegations of a conflict of interest with MNP allegedly acting as both grant writer and administrator for a grant program.
Along with the review, Minister of Energy, Mines and Low Carbon Innovation Josie Osborne has paused MNP’s involvement in the advanced research and commercialization (ARC) and commercial vehicle innovation challenge (CVIC) grant programs.
The investigation is a sharp turn from the government’s position last week when it twice declined to investigate the company in the legislature despite calls from opposing parties.
Osborne says her government was provided new information over the weekend about MNP’s involvement.
“It begged serious questions and we want answers to these questions,” said Osborne.
The minister also directed the comptroller general to undertake a review to ensure fairness in the grant process.
Opposition parties have said the episode has undermined public trust in the government, and that the grant process in B.C. needs reform.
Allegations of conflict of interest
Osborne was tight-lipped about what new information led the government to order the investigation, but said it centred around a conversation MNP was involved in with B.C.-based clean technology company Edison Motors.
Edison Motors CEO Chace Barber told CBC News his company had applied for several B.C. grants but was never successful.
He says his company built the world’s first plug-in hybrid semi-truck focused on the logging, mining and heavy vocation industries.
Before he applied for the CVIC grant, Barber says he was contacted by an MNP employee who offered the company’s grant-writing services. He alleges the company said it charges a 20 per cent success fee, with its payment coming from the grant.
Barber declined due to the high cost but later discovered that MNP also administers grants for the province, with the CEO saying he felt like it was a “shakedown.”
“Companies that write grants should not be allowed to administer grants,” said Barber. “That causes some natural conflict of interest.”
Osborne says provincially awarded grant dollars are not allowed to be used for success fees.
Following the failed grant application, Barber says he was again contacted by MNP who again offered its services.
He says he felt pressured to sign with MNP, adding that he believes he didn’t get the grant because he said no to the company.
In a statement, MNP said it cannot comment on specific applications to grant programs it administers due to privacy reasons.
However, it said the allegations that one of its teams acted as both administrator and grant application consultant are false and misleading.
“MNP’s policies and procedures prohibit team members from providing grant writing services for the programs we administer. Our program administration work on behalf of CleanBC is no different,” it said.
“MNP is committed to full transparency and accountability for every public program we administer, and we welcome a government-initiated program review.”
Osborne says the province’s contract with MNP is clear that it isn’t allowed to be involved in any lobbying or consulting services.
‘Additional information … deepened the concern’
Last week, opposition parties pushed for an investigation into MNP. At the time, the B.C. NDP declined to initiate a formal review.
Osborne said it was because her office spoke with MNP and was under the impression that MNP was in discussion with Edison Motors around services for a grant program that it does not administer.
However, according to Osborne, the new information her office received this weekend raised too many questions.
At an unrelated news conference, Premier David Eby said a TikTok video from Edison Motors that surfaced late last week provided “additional information” that “deepened the concern.”
“There are a huge number of applicants for these grants,” Eby says. “People will be successful and they will not be successful. We want especially the unsuccessful applicants to know that the process was fair, and have confidence that although they didn’t get the grant that the process was fair.
“And I think it’s safe to say that right now Edison has raised some serious questions that need to be fairly and independently investigated.”
B.C. United MLA Peter Milobar says British Columbians deserve clarity and answers regarding the MNP episode.
“Did the government fail to do their duty to make sure that there were safeguards in the contract?” he asked.
Milobar also said the episode may have undermined the public’s trust in the province’s clean energy programs at a time when questions are being raised about the provincial carbon tax.
Meanwhile, B.C. Green Party Leader Sonia Furstenau said the province has a responsibility to ensure that its programs aren’t pay-for-play.
“When there’s smoke, we have to ask if there’s fire,” she said. “And the government’s job is to look at if there’s fire in this case.”