A forensic audit into a gift card scandal at the City of Richmond is currently underway, with the RCMP stating that their investigation is "active and ongoing." The city’s Chief Administrative Officer (CAO), Serena Lusk, has attempted to downplay the issue.
Key Findings
- The city has confirmed that $295,000 worth of gift cards purchased in 2022, 2023, and 2024 are unaccounted for.
- This information emerged after Global News interviewed whistleblowers and examined nearly 500 pages of documents obtained under freedom of information laws.
Official Responses
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CAO Serena Lusk has emailed staff claiming that "this matter appears at this time to be an isolated incident." However, some officials disagree. Richmond City Councillor Carol Day stated, "I think meddling in this is just muddying the waters. Better off to just everybody keep your opinions to yourself."
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One employee who was fired worked in Lusk’s office and sent numerous questionable emails regarding large purchases made without proper approval or documentation. For example, one email stated:
"We need to order more. We need 75 keg asap (as soon as possible). $50 value, bonuses on top. We also need 50 white spot asap (as soon as possible) $50 value, bonuses on top."
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Former Vancouver city councillor George Affleck commented on the situation, suggesting that there may have been internal mishandling, but he cautioned against jumping to conclusions.
Employee Responsibility
Lusk emphasized the responsibility of employees in reporting concerns, stating:
"We all have a responsibility to identify and bring forward serious concerns about anything you see or hear that occurs in the workplace."
Ongoing Investigation
The RCMP has stated they will not comment further until their investigation is complete. In an email sent last week, Lusk mentioned that she had spoken with police about the situation but did not disclose whether she provided any evidence related to her own role or actions during her tenure under Mayor Malcolm Brodie.
Lusk noted:
"I spoke directly with them last week regarding my knowledge of these matters."
She also advised that no one else involved should speak publicly about the investigation until it is concluded, to avoid interfering with the probe.
Conclusion
It remains unclear how many individuals were aware of the situation at City Hall during the months when significant amounts of gift cards were purchased without prior approval.
Current Understanding
For now, we know two critical points:
- Significant purchases of gift cards were made without prior permission.
- Lack of transparency: There seems to be a reluctance among officials to discuss the matter openly.
The situation continues to develop as the investigation unfolds.
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