by Provincial Auditor General Kim Adair says what she calls the gross mismanagement of public funds at the now shutdown Island Employment Association exceeded a million dollars.
Adair says certain managers and staff at the Cape Breton employment services agency engaged in unethical and unprofessional behaviour and she says the Association’s board exercised poor governance.
She says some Island Employment senior managers approved payments for extra compensation, overtime, employee bonuses, and travel claims that violated employment contracts and policies.
Adair says her office’s audit uncovered numerous financial transactions to fund education and employment programs for family and friends and unreasonable purchases of furniture, equipment and computers.
She says there was also an alleged kickback arrangement involving the agency’s Executive Director.