SASKATCHEWAN HEALTH SENDS FORENSIC AUDIT RESULTS TO RCMP

Released on September 1, 2004

Based upon recommendations contained in a preliminary report from the forensic auditor engaged to investigate the Metis Addictions Council of Saskatchewan Inc.'s (MACSI) financial records, Saskatchewan Health has turned the file over to0 the Royal Canadian Mounted Police's Commercial Crime Unit. This is being done with the full support and co-operation of the MACSI interim board of directors.

"The forensic auditor questioned the propriety of financial transactions spanning roughly a two-year period and totalling over 500 thousand dollars. The auditor also recommended that some of the transactions be referred to the police for investigation of possible criminal charges. Rather than wait for the final report due September 15th, we have decided to act on this recommendation sooner. Beyond this information, no further comment on the forensic audit report is possible as we do not want to do anything to jeopardize the police investigation now underway," Community Resources & Employment Minister Joanne Crofford said on behalf of Health Minister John Nilson.

"MACSI will co-operate fully. We will give the RCMP full and immediate access to our office and any files and records they need," said Don Axtell, Co-chair of the MACSI interim board of directors and member of the forensic audit reference group.

After receiving a report Saskatchewan Health commissioned last year on MACSI's governance, management and administration, Nilson directed that MACSI's continued funding would depend upon the following conditions being met:

· resignation of the Board of Directors and the appointment of an interim board;
· a forensic audit of the non-profit organization; and
· the appointment of a professional manager to implement the report's recommendations.

At the Government of Saskatchewan's request, the Provincial Auditor agreed to undertake a special assignment to oversee the forensic audit. Saskatchewan Health and MACSI contracted the independent company of Kalesnikoff, Kingdon and Associates to perform the audit for the period of April 1st, 1998 to February 18th, 2004.

MACSI's new interim board, co-chaired by Ray Laliberte and Don Axtell, immediately hired a professional manager and have made solid progress improving MACSI's governance, financial management and administrative procedures and have collaborated on, and co-operated with, the forensic audit.

MACSI provides drug and alcohol addictions counselling, treatment and education programs in centres throughout the province. Saskatchewan Health will provide almost $2.4 million to MACSI this year for these services.

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For More Information, Contact:

Mark Rathwell Health Regina Phone: (306) 787-4083