| Jayx1 |
OTTAWA (CP) - An accountant at Canada's Embassy in Venezuela was fired and arrested after $2 million went missing from federal coffers, The Canadian Press has learned.
The events in Caracas have prompted an internal probe by the Foreign Affairs Department that may result in disciplinary action against other staff.
"Our investigations have revealed room for improvement in the mission's hiring and accounting practices," said Kimberly Phillips, a department spokeswoman.
The former employee was one of two arrested by Venezuelan authorities in the case, though neither has been charged with any offence. The prosecutor has until July 11 to decide whether to proceed with charges.
The discovery of misappropriated funds at the mission in Venezuela, a country beset by political and economic instability, came as Canadian officials tried to sort out numerous banking and bookkeeping errors.
An examination of accounts during the winter of 2002-03 revealed "several financial transactions of a suspicious nature," Phillips said.
Further investigation turned up "fraudulent transactions"totalling $2 million between January 2000 and April 2003, she added.
"The department is committed to the full recovery of the money and vigorous prosecution of the perpetrators through the justice system in Venezuela," Phillips said.
"Consultation in this regard is underway with the Department of Justice (news - web sites), RCMP and local authorities."
The locally hired accountant was dismissed from the embassy in early April last year. Foreign Affairs would not identify the man, citing the privacy law covering federal employees.
"To our knowledge, the names of the (arrested individuals) have not been made public in Caracas and, in Canada, based on Privacy Act provisions, we cannot provide that information," Phillips said.
While Venezuelan officials contemplate charges, the two arrested are forbidden from leaving Venezuela and their assets have been frozen, Phillips said. Foreign Affairs has provided full co-operation to authorities in the case, she added.
The alleged fraud was uncovered after department auditors visited the Caracas mission to conduct a wide-ranging review.
The auditors discovered problems with banking practices at the embassy dating to 1998, when a fire destroyed financial records.
In their report, completed last November and only recently released, the reviewers made several recommendations, including close supervision of the accountant hired to replace the fired man.
In a written response included in the audit report, the department noted the dismissed accountant "had always been closely supervised and required (an) unacceptable amount of monitoring."
The department also acknowledged that as late as March 2003, "serious financial irregularities" existed within mission accounts.
The embassy accepted improvements suggested by the auditors and established new banking arrangements in Venezuela.
"Like any other institution managing funds, embassies are vulnerable to fraud and theft," Phillips said. "The lessons learned in Caracas are shared with all missions so that they may protect themselves."
A "full review" of the circumstances surrounding the incident, including the role of Canadian supervisors, is ongoing, Phillips said. "Appropriate disciplinary action will be taken if warranted."
Where does it end?? TIME TO CHANGE GOVERNMENTS NOW! At least the venezuelans have the balls to arrest people even when its not their scandal unlike us. |
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