After being involved in a series of scandals, WE Charity says it has sent home many contractors. This includes the cancellation of a $900-million COVID-19 student grant project with the federal government. WE Charity stated that extra staff had been hired “specifically to support the administration of the CSSG program and are not part of WE Charity’s permanent staff.”
The charity indicated that they had to make the incredibly difficult decision to end the contracts for those hired to deliver the CSSG program with the Government funding no longer available. WE Charity has been under increased scrutiny since the end of June when the federal government announced that they were partnering with WE to create the Canadian Student Services Grant. However, the charity has been in the hot seat before. The Canadian Student Services Grant was aimed at helping tens of thousands of Canadian students who can’t find summer work during the pandemic.
Depending on the number of students who were recruited to participate, WE itself was promised up to $19 million in payment.
However, following the allegations of a conflict of interest came up over connections between the charity and Prime Minister Justin Trudeau and his family, the deal was terminated on July 3. WE Charity confirmed that contractors had been compensated for the time that they had worked, and additional pay had been provided “based on tenure.”
They added that they had initially recommended to the government that their contractors’ contracts be continued since they had received 35,000 applicants for the program early on. The statement indicated that WE Charity decided not to take any of the funds that were allocated to pay for the work delivered for the CSSG program. WE Charity is paying all sunk costs and remaining payments to contractors and vendors.