Several members of the Portland Hotel Society board and executive director Mark Townsend will likely have to be replaced if the non-profit organization is to avoid receivership, sources have told Global News.
The society, which had $34.6 million in revenue last fiscal year, was subject to an independent audit by Deloitte after BC Housing noticed several discrepancies in expenses.
After receiving the audit, BC Housing had a number of concerns, according to people with knowledge of the investigation. These include:
- Whether there were discrepancies with holiday pay, in which members of the administration may have taken out holiday pay before going on to claim them.
- Whether or not certain expensed trips, including a trip to Disneyland and a canal cruise, were for business purposes.
- Whether contracts were not awarded at arms length.
Housing Minister Rich Coleman said there were questionable spending decisions within the eight million dollars being investigated on the organization’s housing side, and “substantial other millions” on the health side.
Earlier this month, Portland Hotel Executive Director Mark Townsend told Global News they were surprised at the controversy.
“We had no idea they were dissatisfied by the way we were working with them or the efforts we are making to address those concerns,” he said.
However, Townsend’s removal, along with three or four others, is one of the conditions of the society avoiding receivership.
The Portland Hotel Society was established in 1993, and oversees a vast number of services for residents of the Downtown Eastside.
Their principal work involves housing, as they oversee 950 units at 16 locations. Among its other programs are the supervised-injection program Insite (which they co-operate with Vancouver Coastal Health), a program that allows alcoholics to make their own beer, and a crack pipe dispensary. They operate more basic services including banking, dental care and a coffee shop.
– With files from Brian Coxford
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