Fallout of Lac du Bonnet forensic audit continues as Mounties lay fraud charges

WINNIPEG — The fallout from a forensic audit in the RM of Lac du Bonnet continues as Mounties charge a man with theft and fraud.

The RM of Lac du Bonnet Council ordered an audit after a new CAO, hired in 2018, reported deficiencies and financial irregularities. In June, it was announced some staff had been given hundreds of extra vacation hours over the last six years.

“I think anytime something like this is uncovered it’s shocking,” said Loren Schinkel, reeve of Lac du Bonnet.

He said RCMP officers have been working with the auditors for months. As a result, Schinkel said an employee with the RM has resigned.

The resignation is not the only result. Now another issue has been uncovered, and it has the RCMP’s attention.

Schinkel alleges a number of items were being ordered, billed to the RM, and being used for personal needs.

“Some misappropriation of parts that were being ordered through the public works department, basically a theft allegation that resulted from that.”

WATCH MORE: The latest on a forensic audit in Lac du Bonnet

The reeve said the RM might be out in excess of $5,000.

On Nov. 7, Mounties arrested a man and charged him with theft over $5,000 and fraud over $5,000.

None of the charges have been proven in court.

The audit is ongoing, and it may yet uncover other red flags in the RM’s recent history.

“It’s certainly possible, I won’t know until those details become available,” Schinkel said.

The RM is expecting an update on the audit on Friday. 

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