The Trudeau government spent over $100 billion on its wage subsidy program to assist companies throughout COVID-19.
On average, companies received $218,562 in subsidies to finance their payroll.
At least 787 companies successfully received wage subsidies despite being insolvent, an Inquiry of Ministry tabled in the Commons showed.
425 of the 787 insolvent firms were from Quebec, Blacklocks reported, representing over half of the ‘zombie’ firms which received federal funding.
204 of the firms were from Ontario, 79 were from Alberta, 45 were from British Columbia.
Revenue Minister Diane Lebouthillier refused to disclose the total amount in subsidies that were given to insolvent firms, citing “confidentiality provisions of the Income Tax Act”.
Insolvency occurs when an individual or a company cannot meet its financial obligations anymore.