Manitoba flood victims paid double at restaurants, audit finds

New allegations about the Aboriginal aid agency responsible for evacuees from the 2011 Manitoba floods have been revealed in an open letter obtained by CBC News.

The letter reveals that independent investigators have confirmed numerous allegations against the Manitoba Local Association of Firefighters (MANFF).

A confidential document sent to MANFF in January by Aboriginal Affairs and Northern Development Canada (AANDC) detailed the findings of a KPMG investigation into the agency's conduct.

The letter said the report was based on the most recent information in January and that a full report had not yet been completed.

KPMG investigators found that MANFF board members collected more than $60,000 in points from the Canad Inns loyalty program for their personal use.

The investigation also found that a Winnipeg restaurant believed to have paid more than $1 million for late-night meals to flood evacuees last year actually made more than $2 million in profits and raised some hotel evacuee meals by 100 percent.

CBC News reached out to Mona Lisa Ristorante for an interview, but did not respond.

The letter states that a contract has been made to provide “night meals” in hotels where restaurants and kitchens are closed.

In less than two years, MANFF has raised $2.1 million, an increase from $24.44 to $49.01 per person over the year. This is almost all of the three meals a day allowance allowed to evacuees.

Auditors discussed the findings with Mona Lisa Ristorante, who said in the letter: “While working for MANFF, they provided services as requested under the system managed by MANFF.”

They told the auditors that MANFF never complained about the services or the amounts charged.

“As KPMG observed, MANFF's supplier management did not seem to care much about value for money,” the document said.

The report also found that one MANFF employee took home $42,000 in overtime pay.

AANDC hired KPMG to audit MANFF in 2013 after allegations of mismanagement emerged.

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MANFF has processed more than $100 million in flood relief funds.

Misty Lake Lodge owner Mike Bruno recently ran ads accusing the federal government of stonewalling the report.

CBC contacted the federal government, MANFF and the restaurant named in the audit for comment, but did not receive a response.