Financial questions about housing agency prompt audit and police investigation - Action News
Home WebMail Tuesday, November 26, 2024, 08:38 PM | Calgary | -7.7°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Manitoba

Financial questions about housing agency prompt audit and police investigation

Allegations of financial irregularities have prompted a police investigation and a provincial government audit of a non-profit housing agency in Dauphin, Man.

Provincial government audit underway into Anicinabe Housing in Dauphin, Man.

There has been controversy surrounding the construction of Anicinabe Housing Corp.s office building in Dauphin, Man. (Google Street View)

Allegations of financial irregularities have prompted a police investigation and a provincial government audit of a non-profit housing agency in Dauphin, Man.

Dauphin RCMP Const. Rob Tuff says a fraud investigation is underway following a complaint about activities relating to the Anicinabe Housing Corp.(AHC), a government-funded agency that provides affordable housing for Indigenous people in Dauphin.

Billyjo DeLaRonde, acting chair of the agency's board, told CBC News he went to RCMP with allegations of financial impropriety. He said he has also asked Manitoba Housing to intervene and appoint interim management for the agency until the financial issues are resolved.

A provincial government spokesperson said the AHC board has not formally approached the province regarding any management changes.

Manitoba Housing took over responsibility for AHC from the federal government in 1999. The provincial spokesperson said the agency owns and operates 58 housing units in Dauphin.

The internal audit branch of Manitoba Finance began auditing the books of Anicinabe Housing Corp. in January, as a result of consulting fees disclosed in 2014 that were paid to a board member who is also a tenant. The audit is not yet completed.

DeLaRonde, who has been a member of the AHC board since 2013, admits there has been controversy around a $15,000 payment he received as a consulting fee for finding a building to house the agency's office in Dauphin. He was a board member at the time, but he said the fee was approved by others in the organization.

Meanwhile, the person serving as AHC board president, Lee Heroux, told CBC News he has been dismissed from the board by other members after a meeting in June.

"It'll all come out. I don't think anybody is going to hide behind anything. It's there, black and white. We've seen the audit," Heroux said.

"If there's an investigation going on, let them proceed and start interviewing us."

Heroux added, "It's going to be a public issue anyway because of the audit."

Heroux said he doesn't agree with DeLaRonde on asking the province to appoint interim management while the financial issues are investigated.

Questionable costs exceeded $93K

In the 2015 audited financial statements, AHC's auditor wrote that "a significant number of receipts could not be provided for construction costs" to build the agency's office in Dauphin.

The auditor tallied the questionable costs at $93,762. In a June 22 letter to the the agency's board of directors, the auditor said the costs included payments to AHC officials and should not have been included in the capital cost of the building.

DeLaRonde said the agency needs money for renovations to housing units, including repairs to windows, doors, and bathrooms, based on concerns from tenants.

"Instead of having a very reasonable type of accommodation for Aboriginal people, we're going to become slum landlords. And that's just not acceptable," DeLaRonde said.

DeLaRonde has served in the past as president of the Manitoba Mtis Federation, as chief of Pine Creek First Nation and as chair of the Frontier School Division.

The province subsidizes agencies that provide housing for low-income households.

Funding to AHC was $282,462 in 2015-16 and $458,673 the year before.The funding goes toward operating costs and the amount decreases as mortgages are paid off, the province said.