I will preface this by saying that my experience is with the PhD level business award. The SSHRC Master's competition usually works differently but, I'll post what I know in case it is helpful for you or others.
Last year, my application was forwarded from my school to SSHRC. I found out in June (it was really late last year) that I was not awarded a CSG/SSHRC in the general competition. In late July I got a letter saying that my application had been sent to the Business Competition and was funded (I couldn't accept this award because I'm studying in the United States...this goes to your point about the "politics" of the initiatives). My application was only tangentially related to business, and I had not specifically applied to this category. My personal guess is that they are having a tough time finding applications that are specifically related to business and are pulling from other elsewhere to insure that the money is going to well-qualified candidates.
My experience last year was that, because of the novelty of this scholarship initiative, helpful bloggers and my school's administration did not have a lot of advice for me. I ended up having a couple of helpful (if ultimately disappointing) email exchanges with SSHRC. If you have specific questions, I would not hesitate to contact them.
Best of luck!