Sunday, September 21, 2014
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Manitoba flood victims paid double at restaurant, audit finds

KPMG audit confirms whistleblower complaints in 2013 against Manitoba Association of Native Firefighters

CBC News

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).

A leaked confidential document that Aboriginal Affairs and Northern Development Canada (AANDC) sent to MANFF in January detailed the findings of the KPMG investigation into the agency’s conduct.

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

KPMG investigators found MANFF board 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, accused of charging more 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.

“KPMG observed MANFF’s 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.

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