The federal government has ordered Sustainable Development Technologies Canada (SDTC) to temporarily suspend its funding for green technology projects, following a months-long investigation that cited conflicts of interest and governance challenges.

Raymond Chabot Grant Thornton unveiled findings from its investigation to Innovation, Science and Economic Development Canada last week.

“The fact-finding report identified a number of instances in which SDTC was not in full compliance with the contribution agreement made with [Innovation, Science and Economic Development Canada],” Minister of Innovation, Science and Industry Francois-Philippe Champagne said in a statement.

“It also identified opportunities for improvement in other areas not covered by the contribution agreement, and outside of the scope of intervention for ISED, including human resources, governance, and oversight.” 

The foundation allocates funds to small- and medium-sized enterprises to help advance pre-commercial technologies. Since 2001 it has allocated $1.71 billion – including $219 million for transportation projects and $81 for next-generation biofuels.

Trucking-related projects to benefit from past funding have included those developed by Loop Energy, Routific Solutions, Vicinity Motor Corp., and FleetOps.

SDTC is to implement a “management response and action plan” by the end of the year. All new projects are temporarily suspended until corrective measures are in place.