Saskatoon Mayor Charlie Clark is concerned about the future of the Lighthouse and its effects on the city's homeless community as court documents suggest there are "irreparable cracks" in the board's ability to function.
Two members of the board, Jerome Hepfner and Twila Reddekopp, are requesting the Lighthouse be put into receivership because, they claim, the board is unable to make decisions in the best interest of the corporation. A judge will make a decision on Thursday at Court of Kings Bench.
"It is clear that the Lighthouse is facing ongoing significant governance and financial issues," Clark said in a statement. "This is very concerning and I hope that there will be a process in place to confirm accountability and transparency in their operations."
The Ministry of Social Services withheld more than $100,000 of funding on Jan. 26 because the Lighthouse wasn't able to provide financial reporting to the ministry, a requirement of the contract, according to an affidavit filed by Reddekopp.
Hepfner's affidavit suggests the inability to access the Lighthouse's financial records is just one of the many ways the board is unable to function properly, with multiple board members seemingly having personal or financial benefits tied to the non-profit.
Hepfner was a co-managing director of the Lighthouse with Reddekopp until they were voted out of the roles last month.
In mid-January, Hepfner became aware that no one at the Lighthouse had access to the company’s accounting software accounts.
Hepfner says that he believes Salman’s business partner at Anyon — Salman’s IT company that provides service to the Lighthouse — was the last to access the accounts in October based on the phone number connected to the two-factor verifications.
He says he can't determine why anyone outside of the Lighthouse would need to access its financial records.
He also says that he believes someone installed software to monitor the internal email system and was leaking the information to Windels.
At the Dec. 15 board meeting, Windels said he heard the ministry was pulling the Lighthouse’ funding.
“This notification, at the time, had been received that same date by email and could be accessed only in Ms. Reddekopp’s Lighthouse email inbox,” Hepfner’s affidavit says.
“In follow up, she and I contacted Social Services and confirmed that Mr. Windels was not on any of its distribution lists at that time. We have been unable to determine how this information could have been received by him otherwise.”
Another board member, Lisa McCallum, who forms the non-profit's audit committee alongside Salman, declined to participate in MNP's investigation last year and had a daughter living as a tenant at the Lighthouse even though she wouldn't be a person to normally qualify for its programming, according to Hepfner.
Hepfner says McCallum's daughter had to be removed "at a significant expense to the Lighthouse."
Last June, CTV News learned MNP investigators were concerned about a transaction that effectively amounted to a $60,000 loan from the non-profit to executive director Don Windels so he could purchase a home.
With the Ministry of Social Services cutting all funding and the Ministry of Health set to discontinue funding by March 31, Clark is worried about the people that could be left it out if the Lighthouse goes into receivership and is liquidated.
"I am also worried about the well-being of the people who are living in the towers and rely on Lighthouse Services, especially given the escalating number of people in our community struggling with homelessness, addictions, mental health and trauma," he said.
"It is critical that all orders of government and community partners work together to reduce the impact on our community."
Clark said The Saskatoon Fire Department has remained "engaged" with the Lighthouse to ensure ongoing health and safety needs are being met.
