Prominent charity serving Black business community paid $1.5M to 2 board members' companies, records show
CBC
Some members of a prominent charity for the Canadian Black business community are calling for its board of directors to resign and for a third-party audit after discovering the non-profit paid two former board members' companies at least $1.5 million for services while they were on the board or CEO of the charity.
CBC Toronto obtained dozens of pages of internal records concerning the Black Business and Professional Association (BBPA) — including invoices and transaction records — which show the non-profit did not disclose more than $800,000 of that spending as related party transactions to the Canada Revenue Agency (CRA).
Any payments made to directors, staff or others who are not at arm's length from a charity (other than salary) are considered related party transactions, and must be disclosed to an auditor and also the CRA, according to a charity watchdog.
"We demand an immediate independent audit of the awarding and use of government, sponsorship, and all other funds," said Chandran Fernando, one of the BBPA members raising concerns, in a statement.
"The BBPA was established to empower Black entrepreneurs and professionals, and it must return to that vital mission through principled leadership and sound governance."
Fernando and a group of other members hired a lawyer to send their demands to the current board of directors in March. The group's lawyer, Kate Genest, sent a second letter last month alleging the BBPA submitted inaccurate financial filings to the CRA.
Denham Jolly founded the BBPA more than 40 years ago. He told CBC Toronto in a statement he supports the call for an independent audit and for the current board to step down.
"It is a critical first step to restoring transparency and accountability within the BBPA," said Jolly.
"Moving forward with good governance, leadership and service to the Black community a special election must happen immediately following the above process."
In response to questions from CBC Toronto last week, a lawyer for the BBPA said the board has recently become aware of these allegations and is taking them seriously.
"[The board] has launched an independent review, which is aligned with the BBPA's commitment to transparency, accountability and good governance," said lawyer Mariam Moktar in an emailed letter on behalf of her client.
"The independent review will be completed by a forensic auditor and an independent third-party firm with expertise in charity and non-profit law and governance."
In a second statement to CBC Toronto last Thursday, the BBPA board said board chair Ross Cadastre and director Rustum Southwell are temporarily stepping down while the external review and forensic audit take place to prevent any potential conflict of interest. The statement said both directors were on the board "at the time in question." In the meantime, the statement said the board will be led by an interim chair.
CBC Toronto previously reported on how the group's allegations of financial mismanagement led the daughter of renowned Canadian sprinter Harry Jerome to demand the BBPA stop using her father's name for its annual awards until the charity was cleared of the allegations.
Members of CUPE Local 456, which represents city workers in Melville, Sask., have voted in favour of job action due to wage disputes and high employee turnover.
Some schools in Queens and Prince counties are starting one hour later Wednesday due to road conditions following yesterday's storm.
Edmonton's city auditor has made eight recommendations to improve the effectiveness of the city's paratransit service, saying clients who rely on the service will benefit from the changes.
Electric bus manufacturers hit hard by pandemic-era supply chain chaos could soon find themselves pummelled by a trade war.
A workshop will be held Wednesday evening to help give Windsor residents the necessary tools on how to interact with people experiencing homelessness.
Buy Canadian — that's the message being pushed across the country. But on the other end of the movement, some small business owners in Calgary who feel the pressure to pivot to Canadian products say that isn't as easy as it sounds.
Inside a community centre in Nova Scotia's Annapolis Valley, poster board collages display photos of a young woman with a big smile on her face. She's shown with her arms wrapped around family members, being silly in selfies with friends, standing proud in a high school graduation gown.
As an outreach worker helping people with life-limiting illnesses in Thunder Bay, Ont., Julie Diner says she doesn't spend much time in the office.
A swift response by flight attendants, crews and emergency workers was among the key reasons why no one died in Monday's plane crash at Toronto's Pearson International Airport, an expert and officials say.
Health care, homelessness and the threat of U.S. tariffs were among the top issues addressed by Cambridge candidates as part of a panel discussion on CBC Kitchener-Waterloo's The Morning Edition on Tuesday.
U.S. president Donald Trump's tariff threats and digs at Canadian sovereignty are forcing Canadian politicians of all stripes to adapt, and in Quebec, the opposition Parti Québécois is facing a particularly tough challenge.
Rough weather on Tuesday forced salvage specialists to abandon their inspection of a cargo ship that ran aground in a rocky cove along Newfoundland's west coast over the weekend.
Premier Tim Houston's government is using its supermajority in the legislature to give itself the power to fire the auditor general without cause and make reports from the office private.