Investigation ordered into B.C. clean energy grant process - Action News
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British Columbia

Investigation ordered into B.C. clean energy grant process

The investigation follows allegations of conflict of interest with MNP allegedly acting as both grant writer and administrator for a grant program.

Company CEO alleges accounting firm MNP acted as both grant writer and administrator

A woman with short hair speaks at an outdoor event.
Josie Osborne, minister of energy, mines and low carbon innovation, has said the government will launch an investigation into an accounting firm it hired to administer some clean energy grants as part of the CleanBC program. (Darryl Dyck/The Canadian Press)

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.

WATCH | Electric truck company CEO raises concerns about B.C. grant process:

B.C. orders investigation into clean energy grant process

5 months ago
Duration 11:19
Chace Barber, CEO and Founder of Merritt-based Edison Motors, raised concerns after his electric truck company was unsuccessful in receiving a provincial clean energy grant. The company's allegations sparked an auditor general investigation into how grants are awarded.

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.

A picture of an office building with the words 'MNP' on it during a rainy day.
The province has now suspended MNP's involvement in two clean energy programs. (Ben Nelms/CBC)

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.

A white man wearing a black hat speaks in front of a sofa.
Chace Barber, the CEO of Merritt-based Edison Motors, says he felt there was a conflict of interest after he was approached by MNP following his grant application. (CBC)

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."

Reproduction of Edison Motors Hybrid Logging Truck
A photographic reproduction of Edison Motors' hybrid logging truck. (Submitted by Chace Barber)

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.

A photo of an office building window, with text reading 'MNP Tower'.
The MNP offices are pictured in downtown Vancouver on Monday. (Ben Nelms/CBC)

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 aTikTok video from Edison Motors that surfaced late last weekprovided "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."

A white man wearing a blue shirt and a patterned black tie speaks in front of a B.C. flag.
B.C. United finance critic Peter Milobar says the MNP episode has undermined public trust in the province's clean energy programs. (Chad Hipolito/The Canadian Press)

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 programsat a time when questions are being raised about the provincial carbon tax.

A white woman with black hair and glasses atop her head speaks.
B.C. Green Party Leader Sonia Furstenau says the province's grant process needs reform to ensure it isn't benefiting those with deep pockets. (Ben Nelms/CBC)

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."

With files from Akshay Kulkarni, Joel Ballard and The Canadian Press