GP Municipality dealing with misappropriation of more than $500,000

Published on Tuesday, 22 November 2022 07:40

A criminal investigation is underway after money was discovered missing from the Gilbert Plains Municipality account.

Reeve Jim Manchur said details of how the $514,571.86 was transfered out of the municipality’s account without council’s authorization are still being determined.

“It happened over a series of time. We’re still getting the final results back from the forensic accounting people that did the investigation for us,” Manchur said, adding the municipality was alerted to the situation by its financial institution and engaged Meyers Norris Penny to conduct a third party investigation.

“There was a number of things happening there and we haven’t got all the details. And a lot of the information from the forensic report has been submitted to the RCMP, so they’re going to be continuing the investigation, as well.”

The employee at the centre of the issue has been terminated for just cause, Manchur said.

In a letter to residents of the municipality, Manchur said councillors take their stewardship of municipal resources seriously and have been making changes to financial controls and procedures to better protect municipal funds.

Those changes include eliminating the ability to etransfer from municipal accounts without dual authorization and requiring council approval on all financial reports.

There have also been increased controls put in place to ensure bank statements are reconciled on a regular basis, as well as requirements for regular and up-to-date audits.

“For a number of months now we’ve changed what we’re doing with our reporting and no single person can now have control of any e-transfer payments out of our accounts,” Manchur said. “And our financial reporting has been vastly improved.”

While the amount of money missing is substantial, the municipality is working on getting reimbursed.

“We’re co-operating with our insurance company. There is, I guess, clauses within our policy that allow us to collect the money from an insurance standpoint,” Manchur said.

Read 471 times Last modified on Tuesday, 22 November 2022 07:42
Published in Dauphin Herald News