Manitoba flood victims paid double at restaurant, audit finds

New allegations about an aboriginal aid agency in charge of 2011 flood evacuees in Manitoba have been revealed in a leaked letter obtained by CBC News.

The letter shows independent investigators confirmed many allegations against the Manitoba Association of Native Firefighters (MANFF).

• Manitoba lodge-owner owed $3M from MANFF for housing evacuees
• MANFF used Misty Lake Lodge like a 'party house,' says manager
• Manitoba lodge housing flood evacuees to shut down

A leaked confidential document that Aboriginal Affairs and Northern Development Canada (AANDC) sent to MANFF in Januarydetailed the findings of theKPMG investigation into the agencys conduct.

The letter saidthe report is based on the most current information as of January, and that a full accounting has not yet occurred.

KPMG investigators found MANFFboard members took more than $60,000 worth of points from a Canad Inns loyalty program for their personal use.

The investigation also found a Winnipeg restaurant, initially thought to have billedmore than $1 million in late-night snacks to flood evacuees last year, actually made more than $2 million and upped some prices 100 per cent for feeding evacuees in hotels.

CBC news requested an interview with Mona Lisa Ristorante but haven't heard back.

The letter states the restaurant was contracted to provide "night time snacks" in hotels where kitchens were closed.

In less than two years, MANFF racked up $2.1 million with a per-person cost increasing from $24.44 to $49.01 per day over the year. That's almost the entire allowance per day for three meals that evacuees were allowed.

Auditors discussed the findings with Mona Lisa Ristorante who say in the letter, "While working for MANFF, they provided services as requested, under a system managed by MANFF."

They told auditors at no point did MANFF complain about the services or the amounts being charged.

KPMG observed MANFFs management of the supplier seems to have had little consideration of value for money, the document reads.

The report also found one MANFF employee took home $42,000 in overtime pay.

AANDC hired KPMG to audit MANFF after allegations of misspending surfaced in 2013.

MANFF handled more than $100 million in funds earmarked for flood aid.

Misty Lake Lodge owner Mike Bruneau recently took out ads accusing the federal government of stonewalling the report.

CBC has contacted the federal government, MANFF and the restaurant mentioned in the audit for comment, but has not heard back.