WE Charity scandal information

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A political scandal took place in Canada in 2020 regarding the awarding of a federal contract to WE Charity to administer the $912 million Canada Student Service Grant program (CSSG). The controversy arose when it was revealed that the WE charity had previously paid close family of Prime Minister Justin Trudeau to appear at its events,^[1][2] despite making claims to the contrary.^[3] In total, Craig Kielburger confirmed at a parliamentary committee, WE Charity paid approximately $425,000 to Trudeau's family including expenses.^[4] WE Charity also used pictures of Trudeau's family members as celebrity endorsements in their application.^[5] Trudeau stated that WE Charity had been uniquely capable of administering the program as "the only possible option", and that it was the civil service, not him, who decided that WE Charity was the best option.^[6] It was noted that not only had the charity employed a daughter of former Finance Minister Bill Morneau but a close relationship existed between the minister and members of its staff.^[7][8]

Other organizations, such as the Public Service Alliance of Canada and YMCA Canada, expressed skepticism at the claim that WE Charity was the only organization in Canada capable of administering the contract.^[9][10] Evidence discovered by parliamentary committees investigating the scandal suggested a significant degree of preferential treatment given to WE Charity by the civil service, as, while WE Charity was allowed to repeatedly revise its proposals for the program (a common occurrence in sole-source contracts), no call for proposals was ever issued, nor were any received from any other organization.^[11][12] Reports also indicated that this was further amplified by pressure from Morneau to make the selection.^[13][14]

Ethics Commissioner Mario Dion's report on the involvement of Trudeau, entitled The Trudeau III Report, confirmed his assertion that Canada's civil service had recommended WE Charity to manage the Canada Student Service Grant program.^[15][16] Dion found that on 22 May 2020 Trudeau agreed to their recommendation following a briefing on the previous day in which they conveyed their determination that WE was the only existing organization capable of managing the nationwide program upon short notice.^[15][16] The report exonerated Trudeau in the scandal, commenting: "In light of the evidence gathered in this examination and for the reasons outlined above, I find that Mr. Trudeau did not contravene subsection 6(1), section 7 or section 21 of the Act."^[17] He added: "In my view, the creation and eventual ratification of the (Canada Student Services Grant) was not done improperly."

In his final report entitled The Morneau II Report, Dion ruled that Morneau had contravened sections 6(1), 7, and 21 of the Federal Conflict of Interest Act.^[18][19] In the ruling, Dion stated: "The examination found the relationship between Mr. Morneau and WE included an unusually high degree of involvement between their representatives and afforded WE unfettered access to the Office of the Minister of Finance, which amounted to preferential treatment."^[20][21] Dion also ruled that this preferential treatment was a result of the close friendship between Bill Morneau and members of WE Charity.^[20] Dion added that "this unfettered access to the Office of the Minister of Finance was based on the identity of WE’s representative, Mr. Craig Kielburger", who was both a constituent and close friend of Bill Morneau.^[15]

In a piece authored for the editorial board of The Cornwall Seeker, forensic accountant, professor and Founding President of the Canadian Academic Accounting Association L.S. Rosen examined allegations of impropriety surrounding the Canadian Student Service Grant program and determined them to be unfounded, writing that "several seemed launched to support attacks on other politicians" and that "WE became "collateral damage" in a battle for political power."^[22][23] Writing for Education Canada, Professors Karen Mundy of the Ontario Institute for Studies in Education and Kelly Gallagher-Mackay of Wilfrid Laurier University lamented that, amidst a crisis in Canadian education, WE Charity was prevented from fulfilling its commission, with thousands of youth volunteer tutors sidelined due to the appearance of scandal.^[24] Rosen summarized, "A generation of young people lost the opportunity to volunteer and help their country in a time of need."