Atira Women's Resource Society returns $2M to province, launches review after damning B.C. Housing audit

The largest housing operator in B.C. has returned millions to the province and announceda third-party review of its policies and practices particularly around potential conflicts of interest after a damning audit of B.C. Housing this week revealed financial mismanagement at the organization's highest level.

Atira Women's Resource Society on Friday said it had returned nearly $2 million in surplus funds from the 2020 and 2021 fiscal years in the wake of the audit, which it said it took with the "utmost seriousness."

In addition to looking at broad policy, Atira says thenew reviewwill also examine how the organization"makes decisions on real estate matters," though it did not offer further specifics.

"This independent review, in addition to the B.C. Housing investigation will help ensure we can continue to do the work that serves this community," board chair Elva Kim wrote in a statement.

B.C. Housing Minister Ravi Kahlon said in a statement he welcomed the return of the money but not Atira's review.

"We already have the results of an independent third-party investigation done by experts in the field. Atira needs to take action to address the findings of the investigation instead of delaying and distracting."

The province froze funding to Atirathis week after the forensic auditrevealed mismanagement related to a conflict of interest at the upper echelon of the Crown agency. The report said B.C. Housing CEO Shayne Ramsay directed funds to Atira, despite being married to the non-profit'sCEO.

Also, on Friday, the federal government announced it will be launching its own review in the wake of the audit.

"We know that the recently released forensic audit of the practices of B.C. Housing has produced deeply concerning findings," read a statement from the Ministryof Housing and Diversity and Inclusion.

"We are carefully reviewing the findings of the audit to determine if there are any implications requiring action on the part of CMHC, and, as a precautionary measure, Minister Hussen has already directed CMHC to review Atira."

The review found Ramsay repeatedly influenced decisions that benefitedAtira, and a lack of oversight by the agency's board "resulted in a culture whereby it was deemed acceptable to tolerate non-compliance with (conflict of interest) policies.''

The probe foundAtirabypassed traditional communication channels and went straight to senior members of the Crown corporation for funding requests.

Atirawas also awarded contracts directly, "without transparent, competitive processes designed to ensure the proper use of public funds,'' the report says.