Suspicious financial activity under investigation

Amisk Housing Association is the subject of an RCMP investigation, and Umisk Housing Association could soon find itself following in Amisk’s footsteps. While the two associations share some directors, they are separate organizations.

Concerns with Amisk date back to 2008 and the way the organization managed its 96-unit urban Native housing projects.

“Irregularities” in Amisk’s financial statement forced Canada Housing and Mortgage Corporation’s hand, said Charles Sauriol, CMHC senior media relations officer. Financial discrepancies had also been noted in 2005, but were dealt with at that time.

But the 2008 issues resulted in taking the matter to the RCMP for investigation early in 2010.

“CMHC takes these matters very seriously, including the recovery of funds. That is why we have referred this to the police,” said CMHC media relations officer Kate Munroe.

The financial concerns had CMHC petition the court to force Amisk into receivership. In November 2008, Price Waterhouse Coopers was granted receivership/management of Amisk and the company continues to manage Amisk’s nine projects.

Sauriol would not elaborate on what the 2008 irregularities were “because of the (RCMP) investigation.”

However, CBC News is reporting that Amisk Housing Association directors Mel Buffalo, Lawrence Willier and Geordy Saulteaux allegedly wrote cheques of nearly $700,000 of public funds to themselves.

When Price Waterhouse Coopers took over, any immediate health and safety concerns regarding the Amisk units were addressed.

“CMHC also restricted the disbursement of the federal subsidy to essential project expenses, such as mortgage payments, taxes, utilities and salaries,” said Munroe.

And a group called Homeward Trust is in the process of completing a financial audit to determine if criminal charges should be brought against a second housing association, Umisk.

In July 2009, a subsidiary of Homeward Trust took over management of Umisk’s Aboriginal housing, which ran over 60 units in Edmonton. As part of the audit, said Homeward Trust chair Susan McGee, primary information is being obtained from banks.

“We don’t expect (the audit) to take much longer, but it’s really dependent on things that are not in our control,” said McGee.

Until the audit is completed it is impossible to say how much money was misdirected, said McGee.

“Part of the responsibility of our organization is oversight and to make sure money is used for the intended purpose,” said McGee. In this case, that purpose was to provide housing for disadvantaged people in Edmonton.
When Homeward Trust took over management of the Umisk units it immediately took action, which included assuming the mortgage on one property, which was in the process of being foreclosed upon, dealing with city ordinances, and paying outstanding bills.

“There was a lot of tenant anxiety about being evicted,” said McGee.

McGee noted that action taken against the two housing associations was done separately by CHMC and Homeward Trust.

McGee also noted that this is the first time in Homeward Trust’s history, in which the organization has funded 70 projects and 1,900 units in Edmonton, that it has had to take such steps. While other problems have occurred, it has never been to this extent.

“This is certainly a new circumstance, but we have to be prepared to go to this length to ensure the organizations are doing what they’re committed to doing,” McGee said.