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Summary
- Justin Trudeau-led government’s decision to award a contract of over C$ 900 million to WE charity his family members are associated with has stirred up a political controversy.
- The charity admitted paying the Prime Minister’s mother and brother over C$ 280,000 for speaking at its events.
- This is the third conflict-of-interest probe during Trudeau’s tenure as the Prime Minister, a fact that threatens to tarnish his public image.
- Trudeau government is also under focus over deteriorating Sino-Canadian relations and C$ 343.2 billion-budget deficit accrued over pandemic-support programs.
Canadian Prime Minister Justin Trudeau has again landed into a full-blown political controversy over his government’s decision to award a contract of more than C$ 900 million to a charity his family members are associated with. This is the third conflict-of-interest probe during Trudeau’s tenure as the Prime Minister.
WE Charity, the organization at the heart of the conflict-of-interest probe, received the federal government’s Canada Student Service Grant (CSSG) to fund students’ tuition and other expenses during the coronavirus pandemic. The program aimed to pay a one-time grant of between C$ 1,000 and C$ 5,000 to students for participating in service activities as the country grapples with low employment levels due to the pandemic.
The international charity, earlier known as Free the Children, admitted paying Prime Minister’s mother Margaret Trudeau and brother Alexandre Trudeau over C$ 280,000 for speaking at events between 2016 and 2020.
Prime Minister’s wife Sophie Gregoire Trudeau also hosts a WE Charity's podcast, while the couple regularly participate in organization’s events.
The federal government and WE Charity ended their partnership amid the growing controversy, with the later announcing in a media statement that all funds earmarked for its staff and administration “will be returned in full.”
WE Charity operates in over 130 school districts and agencies in Canada and was approached by the Employment and Social Development Canada (ESDC) in late April for possible collaboration to help post-secondary students impacted by the pandemic situation. Over than 35,000 students had applied for the program, with an average of 3,000 new applications per day, the charity said in a media statement on July 3.
Following requests from two lawmakers – New Democratic Party MP Charlie Angus and Conservative MP Michael Barrett – the Office of the Conflict of Interest and Ethics Commissioner has launched a probe into the matter.
The lawmakers alleged that the Prime Minister breached three sections of the Conflict of Interest Act. The law forbids elected representative from extending preferential treatments, taking decisions on matters related to conflict of interest, or requires them to recuse themselves from votes or decisions if one is found.
As reports of the federal watchdog’s probe came forward, Conservative MP Pierre Poilievre demanded an emergency session of Parliament to address “to get answers” and “bring accountability.” He further questioned the PM’s personal intervention “to direct a billion-dollar program” to WE Charity that has admitted to paying Justin Trudeau’s family.
Mounting Pressure on Trudeau
The latest conflict of interest revelation has stirred up a hornet’s nest and threatens to tarnish Justin Trudeau’s public image again, who narrowly won the re-election in 2019 on the heels of two political controversies.
In the first case, Trudeau was reprimanded by Canada’s ethics watchdog for a vacation on a private island owned by Aga Khan, an Ismaili Muslim spiritual leader and billionaire philanthropist.
A 66-page report by former Ethics Commissioner Mary Dawson stated that the trip broke four subsections of Canada’s conflict-of-interest law and is “incompatible” with Trudeau’s public duties.
The second conflict-of-interest arose after reports surfaced of the Prime Minister improperly influencing a high-profile corporate legal case by pressuring his former attorney general for an out-of-court settlement in corruption charges against engineering firm SNC-Lavalin Group Inc.
The WE Charity case also comes in the backdrop of mounting pressure on the Trudeau government over Canada’s deteriorating ties with China. Tensions between the two nations heightened after the Canadian law enforcement agencies arrested Huawei Technologies’ Chief Financial Officer Meng Wanzhou in Vancouver on an US extradition request in December 2018.
In retaliation, Beijing arrested two Canadian citizens – former diplomat Michael Kovrig and businessman Michael Spavor. A trade war eventually ensued between the two nations with billions of dollars’ worth of imports and exports being held up.
Though recent polls show that the public opinion against China is shifting, several eminent Canadian personalities wrote to the PM in June to end the captivity of the two fellow countrymen in Chinese gallows.
The Trudeau government is also under focus over C$ 343.2 billion fiscal deficit – massive debt levels unseen since the second world war. The budget deficit, accrued over the government’s expenditure on coronavirus-related support programs, is nearly 16 percent of economic output. This expense will be financed through a new bond program of C$409 billion, which was up from C$ 124 billion in 2019-20.
