KENORA, Ont. — Kenora MP Eric Melillo is criticizing the Trudeau government for approving a FedNor investment of $800,000 in a company which he says operates out of southern Ontario.
A government spokesperson says FedNor has been in contact with the company, and is monitoring the situation.
FedNor is the federal economic development agency responsible for northern Ontario.
Melillo – the Conservative shadow minister for FedNor – wants to know why it funded tech company Skritswap Inc. in 2019.
Founded in 2015 by Melissa Kargiannakis of Sault Ste. Marie, Skritswap uses artificial intelligence to make complex online documents easier to understand by changing the reading level.
A month after the funding announcement was made, questions were raised about the number of jobs the company was providing in northern Ontario.
In a statement Monday, Melillo said he raised the issue last week during Question Period in the House of Commons, but Economic Development Minister Melanie Joly "dodged the question" of whether Skritswap has created a single job in Sault Ste. Marie.
He said local media reports suggest the company has a single employee in Sudbury but no jobs in the Soo, where it nonetheless lists its corporate address as the city's innovation centre.
"We know that this company forwards their mail from Sault Ste. Marie, but that they're actually located in southern Ontario," Melillo said.
He added that it also has job opportunities and employees in B.C. and California.
"So what's missing here is anything to justify them receiving funding which is designated for northern Ontario."
Melillo said the situation calls the fairness of FedNor into question.
"I can't help but wonder how many small businesses in northern Ontario may have been passed over for FedNor funding in favour of less deserving companies that may not even operate here," he said.
Tbnewswatch reached out to Skritswap and to Joly's office for comment.
In a statement, the press secretary for the minister said the funding for the company was given "to support a woman entrepreneur in growing her business in Northern Ontario."
Catherine Mounier-Desrochers added that "FedNor is aware of this situation, is in contact with the company and will continue to monitor the situation closely."
She said "They are fully aware that if they fail to meet the parameters set by their contribution agreement, it will need to immediately pay back the funds it received."
Skritswap has not provided a response as yet.
