No conflict in handling of B.C. clean-energy grants: auditor general

B.C.'s auditor general says he found no evidence of conflict of interest was found in the handling of provincial grants for the zero-emission vehicle sector by accounting firm MNP.

Auditor general Michael Pickup said Wednesday that he and his team investigated after conflict of interest allegations arose earlier this year around MNP's handling of Advanced Research and Commercialization (ARC) grants, which also includes the Commercial Vehicle Innovation Challenge (CVIC). 

"Our examination was guided by three questions about MNP's actions. After extensive work, we found no evidence of a conflict of interest in any of the areas that we examined," Pickup said in a statement. 

Pickup says the results show no evidence MNP wrote grant applications for clients, influenced the evaluation process to benefit clients or used its administering of the program to "recruit" clients for the company's other services. 

CBC News reported in April that allegations over grant money mismanagement originated with the Official Opposition, B.C. United, but gained more attention after CEO of Edison Motors, Chace Barber, shared his experience trying to get funds under the CVIC program. 

In April, the provincial legislature unanimously directed Pickup's office to examine allegations by Edison Motors that MNP was both administering the grants and offering services to help businesses with applications.

Barber says he is disappointed by the result of the audit, which has left him with more questions than answers. 

The company said the auditor general's probe did not look at MNP's administration of other government grant programs or the firm's management of conflicts of interest.

"That was 90 per cent of the issue was their conflict of interest," Barber said. "And they did not investigate the management of the conflict of interest, so I'm very disappointed in that."  

MNP did not immediately respond to a request for comment on the report, but previously said the allegations were "false and misleading."

B.C.'s Minister of Energy, Mines and Low Carbon Innovation Josie Osborne said in a statement there are no recommendations from the Office of the Auditor General, and the province is "moving forward" with the grant program. 

"The ministry will work to improve the information provided to applicants to ensure it's clearer that MNP's role is limited to day-to-day program administration," Osborne said. 

"British Columbians need to be able to have confidence that public funds are being administered appropriately and that grant programs are fair for everyone," Osborne said. "And that is exactly what the auditor general found."

Premier David Eby said Wednesday that it was reassuring to know the investigation found the grant program had been handled properly in this case. 

But he said it is a "good reminder" to the provincial government to have clearer communication in explaining grant processes.

The province has committed about $50 million to the ARC grant program under its CleanBC plan to "reduce transportation-related greenhouse gas emissions."

The report can be found on the Office of the Auditor General of British Columbia's website.