Photo by Emily Chatwood / MBC News
A forensic review has revealed serious weaknesses in Greater Napanee’s purchasing policies, leaving the town vulnerable to fraud and misuse.
The audit by KPMG Forensic Inc. focused on a $200,000 emergency purchase of a sidewalk snow-clearing machine in August 2022.
Mayor Terry Richardson shared during press conference with local media on Thursday that this was first brought to his attention in late March 2023.
Town Council then requested the audit. It found that the purchase did not violate the town’s procurement by-law, but the by-law was unclear and lacked safeguards.
The purchase occurred two days before the “lame duck” period before an election, which limits Council’s authority. A senior staff member approved the purchase under emergency provisions, despite their normal $50,000 spending limit.
Richardson shared that he and council have a responsibility to ensure that the taxpayers’ dollars are used responsibly, and that good judgment is used in how that money is spent.
He continued in saying it’s even more challenging to accept that it would take 7-months to inform council of the purchase to this magnitude.
KPMG flagged issues including poor record-keeping, incomplete processes, no conflict-of-interest policy for staff, and insufficient training on procurement and fraud awareness. The town also lacks a whistleblower mechanism for reporting concerns.
Council has directed the new senior leadership team to complete the procurement work as outlined in the 15 recommendations contained within the KPMG Report.
Mayor Richardson encourages everyone to read through the reports to form your own opinions. You can find the reports here.
This report will go before Town Council during their next meeting on Tuesday, December 10,2024, where further discussions are expected to be had.
Written by Emily Chatwood
