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Staff at the Thompson Nicola Regional District were pressured into evading internal spending controls in what auditors describe as a "culture of intimidation."

Auditors found that excessive food and alcohol spending was sometimes split between corporate credit cards, and staff were pressured by a senior employee to take part.

"We understand that staff would be scolded and treated poorly if they refused to comply with the request," the BDO Canada LLP forensic audit report reads.

BDO Canada's forensic audit found evidence of bullying and harassment at the regional district, along with the "inappropriate culture of spending" that was previously stated.

The forensic audit at the regional district was requested by the board of the directors in an attempt to offer transparency to the public and taxpayers. The board sought auditors to investigate five years of spending between 2014 and 2019 after concerns were raised about the former chief administrative officer, Sukh Gill.

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In the partially redacted report, the authors explain someone within the regional district expressed their concerns about "individual 29," as named in the report, which included multiple allegations related to taxpayer funded expenses.

The audit was initially budgeted for $75,000, but its scope expanded as auditors uncovered more information, which included thousands of expense reports and documents, along with a review of email records between 2001 and 2020.

The long-awaited report shows frequent and high amounts of spending on meals and entertainment, which was sometimes was split between employees. Other expense claims lacked detail or had misstated information.

In one instance, investigators found an employee was pressured to pay a $700 bill at Nandi's Flavours of India with their corporate credit card.

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A witness interviewed by investigators recalled a senior employee saying, "(The employee's) credit card was going to lose its virginity that night."

According to the witness, pressure to use the corporate card for the dinner bill was a tactic used to make the individual "more complicit."

Taxpayers also funded a dinner at Whistler restaurant Bearfoot Bistro, which totalled $8,600, on Sept. 13, 2018, during a Union of B.C. Municipalities convention. This bill was split into two payments between two different people, but no itemized receipt was provided.

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"(The regional district) explained that itemized receipts not being attached to expense reimbursement reports was a common practice and attendees were instructed not to provide itemized receipts by Individual 29," the report reads.

The forensic audit report reveals a culture of spending where expenses, conflicts of interest and bullying of employees was found at the regional district, while RCMP is continuing a fraud investigation at the regional district.

The investigation is headed by the financial integrity unit of the RCMP's Federal Serious and Organized Crime branch in B.C.

Kamloops RCMP was handed information about the potential for fraud at the regional district in March 2021, but later "E" Division team in Surrey took the lead on the investigation in May.

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