City of Richmond has disclosed that it has nearly $295,000 in unaccounted gift

The City of Richmond in British Columbia, Canada, is facing a financial scandal involving approximately $295,000 in unaccounted-for gift cards.

This issue came to light during an internal review that led to the termination of a city employee and the reporting of the matter to the Royal Canadian Mounted Police (RCMP) for investigation. The city had been using gift cards as part of its employee recognition program, but the review revealed significant inconsistencies in the distribution and usage of these cards.

The city's records show that between January 1, 2022, and December 31, 2024, a total of $446,000 worth of gift cards were purchased. Of this amount, $120,000 was allocated for legitimate purposes such as staff recognition, volunteer appreciation, and employee fundraising for organizations like the United Way. However, $295,000 remains unreconciled, indicating that these cards are either missing or were used without proper documentation.

The discrepancy in the figures was brought to light when Global News obtained 493 pages of records through a freedom of information request, which showed that the city had spent significantly more on gift cards than it had initially reported. The documents revealed that the city had spent $156,000 in 2022, $218,000 in 2023, and $124,000 in 2024, which is substantially higher than the amounts previously reported for those years.

Mayor Malcolm Brodie admitted that there seems to have been a breakdown in the city's internal controls, which allowed this issue to persist undetected for an extended period. Following the scandal, the city has decided to end the practice of awarding gift cards and is restructuring its recognition programs to avoid similar situations in the future.

The RCMP has launched an investigation into the missing funds, which is currently ongoing, and no charges have been laid as of yet. The case highlights the importance of rigorous financial oversight and the potential for mismanagement and fraud within government institutions.