Prime Minister Justin Trudeau appears as a witness via videoconference during a House of Commons finance committee in the Wellington Building on Thursday, July 30, 2020. The demise of WE’s Canadian operations won’t take the heat off Prime Minister Justin Trudeau over his government’s decision to hire the charity to run a now-defunct student volunteer program. THE CANADIAN PRESS/Sean Kilpatrick

Prime Minister Justin Trudeau appears as a witness via videoconference during a House of Commons finance committee in the Wellington Building on Thursday, July 30, 2020. The demise of WE’s Canadian operations won’t take the heat off Prime Minister Justin Trudeau over his government’s decision to hire the charity to run a now-defunct student volunteer program. THE CANADIAN PRESS/Sean Kilpatrick

Political fallout continues despite shuttering of WE’s Canadian operations

Trudeau and Morneau have apologized for not recusing themselves from the decision to pay WE up to $43.5 million

The demise of WE’s Canadian operations won’t take the heat off Prime Minister Justin Trudeau over his government’s decision to hire the charity to run a now-defunct student volunteer program.

NDP MP Charlie Angus says WE’s announcement Wednesday that it is shuttering its Canadian operations only underscores the lack of due diligence done by the government before handing administration of the program over to an organization that was evidently in financial distress.

Two months before the government gave the contract to WE in late June, Angus notes that the organization had laid off hundreds of staff and replaced almost its entire board of directors, which had been denied access to the charity’s financial reports.

Angus says WE was “desperate” and cashed in on its connections to Trudeau, his family and his former finance minister, Bill Morneau, in order to persuade them to pay the organization to run the student service grant program.

Trudeau himself has been a featured speaker at half a dozen WE events and his wife, mother and brother have been paid hundreds of thousands of dollars over the years in expenses and speaking fees.

Trudeau and Morneau have apologized for not recusing themselves from the decision to pay WE up to $43.5 million to administer the program and are both under investigation by the federal ethics watchdog for possible breaches of the Conflict of Interest Act.

“WE shutting down doesn’t make the Liberals’ scandal go away,” said Angus.

The government insists it was bureaucrats who recommended that WE was the only organization capable of administering the massive national program. However, thousands of documents released by the government suggest public servants may have been nudged to look at WE by their political masters.

Two House of Commons committees were in the midst of investigating the deal and another two committees were preparing to launch separate investigations when Trudeau prorogued Parliament last month, putting an end to the committees’ work.

However, the WE affair is likely to continue dogging the government when Parliament reopens on Sept. 23 with the demise of the organization’s Canadian operations only adding fuel to the fire.

Conservative Leader Erin O’Toole said Wednesday that WE must hand over all the documents requested by the finance committee about the student service grant program.

The program was supposed to cover up to $5,000 in education costs for students who volunteered during the COVID-19 pandemic. The government initially pegged the cost of the program at $912 million but the sole-source deal with WE put the cost at $543 million.

The deal stipulated that WE was not to make money on the program. The charity has repaid the full $30 million the government gave it to launch the program and has said it will not seek reimbursement for some $5 million in expenses incurred before WE withdrew from the deal in early July amid political controversy.

The organization had already been struggling due to the pandemic-related shutdown but the questions about the student volunteer program prompted many of its corporate sponsors to cut their ties with the charity.

WE said Wednesday it plans to lay off 115 Canadian staff and sell all its property in Canada in the coming months, including its landmark $15-million Global Learning Centre in downtown Toronto, which opened in 2017.

It follows news last month that WE would be laying off dozens of employees in Canada and the United Kingdom.

The net profits will be put in an endowment fund that will be overseen by a new board of governors and used to complete several projects in communities in Latin America, Asia and Africa that were started by WE but remain unfinished.

The fund will also cover the operating costs of several large-scale infrastructure projects, such as a hospital and college in Kenya and an agricultural centre in Ecuador. However, no new projects or programs will be launched.

READ MORE: WE Charity closing operations in Canada, Kielburgers plan to step down

All future WE Day events are also being cancelled. The organization says it will no longer have staff to work with teachers, though existing resources will be digitized and available online. WE says it was active in 7,000 schools across Canada.

Shutting down its Canadian operations ”shows just how much trouble WE was in and how badly they needed this bailout from their Liberal friends,” Angus said.

“They’ve have been in economic freefall for months. This was a group that fired its board of directors for asking too many questions about its finances. The question is why didn’t the government see this before handing them over a contract worth millions?”

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusLiberals

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rose Sawka, a 91-year old Acropolis Manor resident received her COVID-19 vaccination on Jan. 20, one day after an outbreak was declared at the long-term care facility. Her son Terry Sawka visited with her through the window, like she is seen in an Oct. 2020 photo. (Photo: K-J Millar/The Northern View)
Acropolis Manor COVID-19 cases jump to 20 confirmed

Prince Rupert long term care facility received vaccinations

Illicit drug use has spread in the Northern Health region and overdose emergency calls increased in Prince Rupert by 29.5 per cent from 2019 to 2020. (Photo:THE NEWS/files)
Overdose emergency calls in Prince Rupert spikes by 43.6 % in five years

Northern Health issues illicit drug use warnings

Glenn Hall, resident at Yellowhead Pioneer Residence Assisted Living in Barrierem B.C. received their first COVID-19 vaccinations on Jan. 19. (Pam Simpson photo)
Acropolis residents and staff to receive COVID-19 vaccine

Prince Rupert long term care residents will receive the vaccine on Jan. 20

An outbreak of COVID-19 was declared on Jan. 19 at Acropolis Manor. The long-term care home also had an influenza outbreak nearly two years ago.
COVID-19 outbreak declared at Acropolis Manor

Prince Rupert long-term care home has four resident, three staff cases

Lax Kxeen Elementary School has two different active notices for potential COVID-19 exposure after three adult lab-confirmed cases of the virus were identified in Prince Rupert schools, School District 52 released in a statement on Jan. 18. (Photo K-J Millar/The Northern View)
Three adult COVID-19 cases result in four potential exposures in city schools

Prince Rupert School District 52 calls special open meeting

Maj.-Gen. Dany Fortin, vice-president of logistics and operations at the Public Health Agency of Canada, speaks at a news conference on the COVID-19 pandemic in Ottawa, on Friday, Jan. 15, 2021. THE CANADIAN PRESS/Justin Tang
B.C. records 500 new COVID-19 cases Wednesday, 14 deaths

Outbreak at Surrey Pretrial jail, two more in health care

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Eighteen-year-old Aidan Webber died in a marine accident in 2019. He was a Canadian Junior BMX champion from Nanaimo. (Submitted)
Inadequate safety training a factor in teen BMX star’s workplace death in 2019

Aidan Webber was crushed by a barge at a fish farm near Port Hardy

Southern resident killer whales in B.C. waters. Research shows the population’s females are more negatively influenced by vessel traffic than males. (Photo supplied by Ocean Wise Conservation Association)
Female orcas less likely to feed in presence of vessel traffic: study

Research the southern resident population raises concerns over reproduction capacity

(Black Press Media files)
Transport Canada not budging on enclosed deck rules, despite calls from BC Ferries union

There have been at least 23 cases of the U.K. variant detected in Canada, four of which are in B.C.

The Elk Valley Hospital is adapting to meet the needs of patients in the Elk Valley.
1-in-5 COVID tests coming back positive in and around Fernie, sparking concern

Dr Ron Clark of Elk Valley Hospital said one in five tests was returning positive for COVID-19

Throughout December, RCMP conducted CounterAttack road checks as police worked to keep roads free of impaired drivers. (BLACK PRESS file photo)
‘You can’t make this stuff up’: Stories from the B.C. CounterAttack campaign

Amusing, yes, but a reminder impaired driving affects ability to drive and to make good decisions

(Thesendboys/Instagram)
Video of man doing backflip off Vancouver bridge draws police condemnation

Group says in Instagram story that they ‘don’t do it for the clout’

Inspection of bridge crossing on a B.C. forest service road. (B.C. Forest Practices Board)
B.C. falling behind in maintenance of forest service roads

Auditor finds nearly half of bridges overdue for repair

Most Read