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Two directors at Sustainable Development Technology Canada have stepped down, further depleting a board that has come under scrutiny after an investigation that showed evidence of lax governance at Ottawa’s main funding agency for green technology.

Judith Athaide and Jill Earthy have left the organization, after the departures of fellow directors Annette Verschuren, Leah Lawrence and Jessica McDonald late last year.

Ms. Athaide, who serves on a number of boards including Canada Pension Plan Investments, had been an SDTC director since 2018. Ms. Earthy, who is chief executive officer of InBC Investment Corp., had been on the board since 2019.

Jessica Conlin, an SDTC spokesperson, said their terms had initially expired in June, 2022, but they had stayed on “for board continuity.” The agency thanked them for their service and dedication, Ms. Conlin said in an e-mail.

The federally funded non-profit is seen as key to Canada’s cleantech industry, having invested $1.7-billion in environmental ventures since its establishment in 2001. But last year it became enveloped in controversy.

In early October, an investigation into SDTC ordered by the federal department in charge, Innovation, Science and Economic Development Canada, produced a report that showed evidence of inappropriate funding, conflict-of-interest breaches and human resources shortcomings. The probe was triggered by allegations made by a whistle-blower group that consisted of current and former employees of the organization.

Industry Minister François-Philippe Champagne has suspended the agency’s ability to provide funding to cleantech entrepreneurs. He has said the freeze will remain in place until he is satisfied that the board has instituted a series of corrective measures he ordered, and that a separate investigation into workplace practices is completed to his satisfaction.

Both Ms. Lawrence, who was SDTC’s CEO, and Ms. Verschuren, who was chair of the board, disputed the findings of the investigation, which was conducted for the federal department by Ottawa accounting firm Raymond Chabot Grant Thornton. When she resigned, Ms. Lawrence said she had been subjected to “a sustained and malicious campaign to undermine” her leadership.

Industry officials have said the funding suspension, now in its fourth month, has upended the financing plans of numerous startups developing environmental technology.

With the latest departures, SDTC has 11 directors, some appointed by the government and others by the agency itself. Audrey Champoux, spokesperson for Mr. Champagne, told The Globe and Mail this week that the minister had yet to appoint a new chair.

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