HALIFAX — Nova Scotia’s auditor general says a Cape Breton-based employment services organization mismanaged $1 million in government funds.

Kim Adair’s audit of the Island Employment Association found numerous instances of alleged mismanagement, including about $340,000 in transactions that involved conflicts of interest.

Adair says her office discovered $162,000 in unapproved salary payments and bonuses, $20,000 in unauthorized travel expenses, and $150,000 in unused and unapproved vacation time.

Her report released today confirms findings that had been revealed by the Nova Scotia Ombudsman, and the matter is now being investigated by the Cape Breton Regional Police Service.

The province’s Labour Department provided $9.84 million to the organization via Nova Scotia Works between 2016 and 2021, the year Island Employment Association’s contract was terminated.

Adair is scheduled to hold a news conference on her findings later today.

This report by The Canadian Press was first published June 20, 2023.

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This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.

The Canadian Press