A forensic investigation into BC Housing has found a significant conflict of interest but no material benefit for individuals in conflict.
The investigation focused on the relationship between the former CEO of BC Housing Shayne Ramsay and the CEO of Atira Women’s Resource Society Janice Abbott.
Abbott and Ramsey are married and were a couple when both served in their senior roles in creating and placing people in housing.
Atira Women’s Resource Society is BC Housing’s largest housing provider.
The independent investigation identified 20 recommendations to improve financial oversight, prevent conflicts of interest and ensure accountability for public funding being used to provide housing.
The audit found Ramsay repeatedly involved himself in matters related to Atira and interfered in decision-making.
Ramsay retired from his job in August 2022 and until now it was framed as voluntarily leaving the organization.
Premier David Eby told the legislature on Monday, while that when he was housing minister, he encouraged the board to fire Ramsay due to the concerns found in this audit.
“We expect the rules to be followed. There must be strong safeguards in place to preserve the public’s trust,” Eby said.
“In 2021, I ordered a review into concerns at BC Housing – which ultimately led to today’s findings.”
The conflict of interest guidelines were designed, in theory, to prevent any unfair advantage to Atira in contracts awarded by BC Housing.
In addition to the conflict allegations there was a printout Eby says he was shown of what appeared to be text messages.
Eby was told the messages were allegedly from the CEO of BC Housing directing a staff member of BC Housing to award funding to Atira, and also directing Ramsay’s name not be used.
“I was told they were part of a larger set of concerning messages,” Eby told the legislature.
Vincent Tong has been serving as the BC Housing CEO since September 2022 and was recently named the permanent CEO.
BC Housing is now implementing recommendations associated with the forensic audit, including strengthening conflict policies and considering implementing an anonymous whistleblower hotline.
Eby says while BC Housing has moved to address conflict concerns, Atira has not.
Abbott is still the housing provider’s CEO.
“We are not satisfied with the organization’s response to this point,” Eby said.
The forensic audit put record-keeping and financial transactions over the past seven fiscal years under the microscope.
The audit examining the Crown corporation’s decision-making and procedures for funding its housing providers has been underway for some time, Eby revealed in November 2022, as the BC Liberals accused him of allowing “mismanagement” to thrive there under his watch.
The audit was conducted by Ernst & Young and overseen by B.C.’s Office of the Comptroller General, which is responsible for the overall quality and integrity of the provincial government’s financial management systems.
A redacted copy of the audit’s terms of reference, shared with Global News last year, instructs auditors to conduct a risk-based analysis of cash outflow to “selected housing providers,” and perform limited data analysis on the payments made by BC Housing with an eye for potential fraud risks.
With the comptroller general’s approval, it authorizes the auditors to interview “any person who, in their professional opinion, could contribute to information related to the issues.” The terms of reference also state records may be requested from ministries, Crown agencies and certain service providers.
Eby said the forensic audit was ordered as a result of the May 2022 report on BC Housing by Ernst & Young, which made 26 findings and 44 recommendations. That report found that the Crown corporation’s organizational structure had resulted in siloed service delivery, that its systems were not meeting the needs of “functional areas,” and with 80 to 85 per cent of its services delivered through non-profit providers, that its manual oversight process was limited.
-with files from Elizabeth McSheffrey