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(DARREN RATHWELL / iNFOnews.ca)

Police will not be forwarding charges to the B.C. Prosecution Service after a months-long fraud investigation at the Thompson Nicola Regional District.

While a recently published forensic audit into financial policies and practices at the regional district revealed various gaps in procedure, and even instances where rules were evaded, a B.C. RCMP spokesperson said the police investigation did not reach the threshold needed for criminal charges.

"Financial investigations are very complex and in order to meet the threshold for a charge to be recommended, all elements of an offence must be satisfied," Sgt. Kris Clark of the federal serious and organized crime unit said.

A criminal investigation began on March 23 at the Kamloops RCMP detachment, but it was later forwarded to the E Division headquarters in Surrey in May.

READ MORE: Forensic audit questions favoured vendors at TNRD

The investigation began after "members representing the interest of the (regional district)" approached police with information, RCMP said in the spring.

The current investigation has ended, but Clark said it's possible to reopen the investigation if more information was brought forward by the regional district.

"If anything new comes to light, it would be on them with whether they want to bring that forward," Clark said.

BDO Canada LLP was contracted to conduct the forensic audit, which revealed gaps in financial procedures at the regional district. It also revealed potentially favoured vendors and conflicts of interest.

Those gaps allowed for the regional district, and therefore the taxpayer, to pay for various things that would typically not be expected at a municipal government. Auditors revealed a corporate phone was given to a contractor and paid for through the regional district, and suspicions surrounding why certain contractors or vendors were chosen over others.

READ MORE: Forensic audit uncovers 'culture of intimidation' at TNRD

No matter what financial procedures or bylaws may be in place at a regional district, Clark said the criminal code will always "trump" those policies. However, Clark said the investigation did not meet "all elements" of an offence required before evidence is forwarded to the prosecution service.

"If we were to forward that to Crown prosecutors, it wouldn't be entertained. Of course they would do their own assessment after that," Clark said. "Just like the audit report, our investigation found there were not best practices followed."

Part of the goal of the forensic audit was to ensure safeguards were in place to prevent unnecessary spending, and the regional district is in the process of acting on recommendations from the auditors.

The investigation was initiated after the sudden departure of former chief administrative officer Sukh Gill. The top employee had worked with the regional district for about 20 years and auditors began by investigating allegations of the misuse of Gill's corporate credit card. 

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What began as an investigation into spending at the regional district spread to a larger investigation into contractors, family and friend connections and a culture of bullying.

The audit was initially approved to cost up to $75,000, but after multiple delays, it nearly cost the regional district $500,000.

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