Question Period Note: ALLEGATIONS OF FINANCIAL MISCONDUCT BY BLACK BUSINESS AND PROFESSIONAL ASSOCIATION BOARD OF DIRECTORS

Members of the Black Business and Professional Association have called for the Board of Directors to be removed and replaced, amid allegations of financial misappropriation of funds

• The Government of Canada is committed to empowering Black communities in Canada by investing in the Black-led organizations that serve them.
• We are aware of the call from members of the Black Business and Professional Association to replace the Board of Directors.
• The Government of Canada monitors each funding agreement to ensure adherence to the Transfer Payment Policy. The department is following up with the organisation as part of its robust integrity measures to ensure that grants and contributions funds are used appropriately.

Black Business and Professional Association Allegations
• Founded in 1983, the Black Business and Professional Association (BBPA) is a Canadian non-profit organization that seeks to promote equity and opportunities for the Black community, particularly in the areas of business, employment, and education.
• On April 24, 2024, Toronto-based entrepreneur Chandran Fernando called for the immediate resignation of the BBPA's current board of directors, accusing them of financial misconduct.
• The board of directors is alleged to have used government grants and sponsorship donations to award contracts to companies linked to former president and CEO Nadine Spencer, without following proper procurement and conflict of interest procedures. These contracts were also allegedly awarded to former board members.
• BBPA members are demanding the disclosure of all relevant documents to facilitate an independent financial and operational audit.
• While the Board of Directors has not yet publicly responded to these allegations, the CBC reports that board chair Ross Cadastre denied the allegations “regarding misappropriation of funds” in an email sent to members on March 21.
• The CBC also reports that the daughter of Harry Jerome, a Canadian sprinter and the namesake of the annual award ceremony hosted by the BBPA, has sent a cease-and-desist letter to remove his name and likeness from the award ceremony until the organization is cleared of the allegations.
• In a statement to CBC in May 2024, a lawyer for the BBPA said that the board has launched an independent review and forensic audit by an independent third-party.
• The BBPA also stated that board chair Ross Cadastre and director Rustum Southwell are temporarily stepping down while the external review and forensic audit take place to prevent any potential conflict of interest as they were the only directors on the board during the period in question. Janelle St. Omer has been appointed as the Interim-Chair of the BBPA.
Funding History for Black Business and Professional Association
• In 2020, the Supporting Black Canadian Communities Initiative established a group of National Funders to support capacity-building in Black-led and Black-serving community organizations.
• The National Funders are four high-capacity organizations, which employ their on-the-ground expertise to distribute funding to community-based organizations through open and transparent calls.
o In 2022, the BBPA received a total of $81,875 from Tropicana Community Services during the National Funders’ first call for proposals, to support efforts to build the sustainability of BBPA’s governance structure.
• The calls for proposals are independently developed and assessed by the National Funders to ensure that investment decisions are made by Black-led organizations in a manner that best serves and empowers Black communities.
• Through the Capital Assistance stream, the SBCCI provided Black-led organizations with up to $100,000 to support capital projects such as purchasing work-related equipment; and/or undertaking renovations and retrofits of existing community and workspaces. This investment was to help organizations more effectively deliver programs and services to the communities they serve.
o The BBPA also received $94,250 in 2022 through the SBCCI Capital Assist to fund the purchase of equipment. Information regarding completed capital assist projects is provided to the public online via the Open Government Portal.
Departmental Integrity Measures
• The Department employs different integrity measures for the streams under the Supporting Black Canadian Communities Initiative, customized to each funding arrangement.
• As per the Capital Assistance Agreement and other grant agreement managed by ESDC, recipients must maintain accurate records of grant expenditures and retain them for three years post-project.
o They must allow Canada access to these records for verification purposes. The Auditor General of Canada can request project-related information within three years for inquiries.
o Recipients must submit progress reports during the project and a final report within 60 days post-project, with the obligation to revise if deemed unsatisfactory. Recipients must cooperate with Canada in project evaluations, including participating in surveys and providing contact information of involved parties with their consent.
• The National Funders’ agreement outlines procedures to ensure compliance by third parties with their obligations under agreements, including monitoring sub-projects, auditing financial records, providing support to third parties, resolving breaches, and recovering overpayments.
o The National Funders must provide reports of monitoring and audits to Canada upon request. If Canada wishes to audit a third party's financial records, the Recipient must cooperate and take necessary steps to enforce access to records, including legal action if required.
o Additionally, the National Funders must conduct periodic visits and audits to verify claimed costs by Third Parties to ensure that claims incurred were in accordance with their agreement.

Permanent Forum on People of African Descent
• In 2018, Canada endorsed the UN International Decade for People of African Descent, which runs from 2015 to 2024. This initiative, centred on recognition, justice, development, and fighting discrimination, helps the Government build frameworks to empower Black communities and advance our work to combat racism, discrimination, and xenophobia faced by those of African descent. In February 2024, the Government of Canada extended the federal Government’s commitments under the United Nations International Decade for People of African Descent (UN Decade) until 2028.
• During the third session of the Permanent Forum on People of African Descent, held in Geneva from April 16 to April 19, 2024, Minister Khera attended and provided remarks at a side-event, organized by Dr. Jean Augustine, former Minister of Parliament, entitled “Glass Ceiling and Glass Cliffs: Advancing employment, leadership and entrepreneurship for Black women.
• The event discussed the intersectional experiences of Black women in the workplace in Canada, and featured a panel of speakers which included Nadine Spencer, the former CEO of the Black Business and Professional Network.
• As the Government of Canada remains committed to remove barriers resulting from systemic and anti-Black racism, the Minister noted in her remarks, her appreciation for the knowledge and experiences shared by all the panel members during this event.

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