Province pulls funding for Lethbridge consumption site

LETHBRIDGE (660 NEWS) — Due to the results of an audit investigation, the Alberta Government is rescinding grant funding to the ARCHES supervised consumption site in Lethbridge.

Earlier this year, when the province released a report on the sites, they also mentioned an investigation was looking into financial issues surrounding the organization but did not provide further details.

But now some of these details are being released, as Associate Minister of Mental Health and Addictions Jason Luan said he is disturbed and extremely disappointed in what was discovered.

However, it is noted in a press release from the province that “the auditors were unable to complete the grant expenditure review in respect to all allegations received or provide a complete financial value attributable to each allegation” because of problems with ARCHES’ financial records and various documents.

The government will be consulting with law enforcement to determine whether more investigation is needed here.

What they did find is millions of dollars being unaccounted for and tens of thousands of dollars being used for improper purposes.

That includes more than $1.6 million unaccounted for due to missing documentation for expenditures from 2017 to 2018.

It is alleged that $13,000 of interest off ARCHES bank accounts was used to fund things such as parties, staff retreats, entertainment, and gift cards.

This involved management retreats where documentation for spending was unclear, trip costs not being recorded in ledgers, gift cards being purchased for board members — including from one company owned by a senior executive’s spouse — and money spent on a television with no receipt documentation.

Other alleged issues include a senior executive’s family member being hired without any record of a resume or qualifications, an executive being paid over $340,000 dollars in 2019 when the grant agreement only allows for a salary of up to $80,000, and vendors being “secured in secrecy” with a lack of transparency.

In a statement released Thursday morning, ARCHES said the findings are concerning to them too and it is still working to understand all the details. The board of directors is planning to hold a press conference to discuss it later in the day.

ARCHES received more than $14 million in public funding over the past two years, but the province appears to be moving away from the harm reduction model with millions of dollars being spent solely on treatment beds and centres.

On Wednesday, the province committed to building five “recovery communities” that will add hundreds of beds.

Last month, the government also announced an additional $4 million over four years to expand a virtual opioid dependency program.