Edison Motors CEO Chase Barber has raised conflict of interest concerns regarding the Clean BC grant program, which is currently under review by BC’s auditor general.
Should a company that administers state grants also offer and solicit grant application services to grant applicants?
That’s the root of the concerns raised by a start-up electric truck company in Merritt that is at the center of a controversy over how to administer low-carbon innovation grants.
“It’s definitely a conflict of interest when the company that issues the grant is the company that administers the grant,” said Theron Groff, chief marketing officer at Edison Motors. Edison Motors wants to expand production of electric heavy-duty trucks and has applied for a grant from B.C.’s Ministry of Energy, Mines and Low Carbon Innovation through accounting and business services firm MNP.
In response to these concerns, the government on Monday requested an investigation into CleanBC subsidy management, including a review of MNP, which administers certain grants and provides subsidy application preparation services to businesses. Announced.
B.C. Premier David Eby said Monday he generally agrees with Groff’s claims.
“So, in general, grants administrators and companies supporting grant applications should be separated,” Eby told Glacier Media.
The issue first surfaced at the B.C. Legislature’s public accounts committee on April 3. Opposition MLA Jackie Teggart of BC United (supported by Fraser-Nicola) told the auditors that the CleanBC electrification subsidy program would require program administrators to charge success fees to successful applicants who used advisory services. “Related potential conflicts of interest.” ”
In response to this, the Ministry announced on April 5th, reportedly There was “no technical violation” from MNP because the subsidy application service provided by MNP did not cover grants administered by MNP. As a result, the BC NDP initially rejected Teggart’s request for a commission.
In response to the government’s explanation, Edison founder and CEO Chase Barber said: The video was posted on social media on April 6th. He shares his experience applying for grants.
Barber claims Edison is the only company manufacturing heavy-duty electric trucks in B.C., and his company applied for a Commercial Vehicle Innovation Challenge (CVIC) grant.
Barber said Edison was turned down by MNP, which had contracted to manage the grant. MNP identifies one of several other CleanBC subsidy programs on a website maintained by MNP.
Barber said MNP also sought other grant application services from Edison and offered Edison a “success fee” of 20 percent of the grant amount.
Mr Barber raised concerns directly with the department about possible “corruption” in late February, after Energy Minister Josie Osborne told opposition MLAs last week that she would seek evidence of problems with the plan. Personally, it’s upsetting,” he said.
“We were in her office to talk about these things,” Barber said.
Barber said Edison was subsequently disinvited from a promotional event by Plug-in BC, a government-funded vehicle electrification lobby group.
What was not clear to Mr. Barber was whether the grant application services provided were for grants administered by MNP.
Groff clarified in an email to Glacier Media that he “cannot speak with certainty on the record as to whether MNP has offered to apply for grants they administer (for a fee on behalf of Edison).” .
Mr. Groff further revealed that while applying for the MNP Management grant, Edison also used the MNP application service for another grant.
Regardless of how direct the perceived conflict of interest is, the system is flawed, Groff says.
“Can we say, ‘If you scratch my back, I’ll scratch yours’ with other companies that manage and apply for grants?” Groff asked. .
“And how is it fair that a company that receives money from the government to manage subsidies can also receive 20 percent of the subsidies?” Groff said. “Is his 20% of the carbon tax-funded subsidy going to line the subsidy companies’ pockets?” he asked.
Eby asserted Monday that he strives to ensure the grant program is administered fairly.
“For me, and for all applicants, and for everyone in British Columbia, when people apply for government funding, they receive a fair review and are selected because it is the best offer. We know that it is very important that the proposed proposal is selected.
“So, to give all British Columbians certainty based on the information that has been submitted to the provincial government, we have confirmed that the Auditor General will independently investigate this and not only this, but specific programs. In general, we take every safeguard to ensure that we achieve our goal of fairness for all applicants,” Eby said.
on monday, MNP also responds to these movements He said he could not comment on specific applications for grant programs run by the company, such as Edison, although it is based in Victoria.
“We are aware of allegations that one of the teams working in our Grant Management Services division in British Columbia was acting as an administrator and grant application consultant for the CleanBC grant program. The allegations are false and misleading,” MNP said.
“Many firms provide grant management and grant writing services to assist their clients. Professional services firms that provide these services, including MNP, have policies and policies that address potential conflicts of interest. We have procedures in place,” MNP said regarding administration and services related to the same grant.
“When it comes to grant application services, small businesses that do not have the in-house resources to complete applications often turn to third parties to assist them with their applications.Professional services firms, including MNP, offer If a non-administrator program is requested, we can assist you in pursuing federal, state, and other grant programs,” MNP added.
gwood@glaciermedia.ca
