Ousted women's shelter keeps 'half million dollar' bank account
Province allowed Osborne House Inc. to keep funds, despite fact they don't have a shelter anymore
Osborne House Inc. continues to control hundreds of thousands of dollars in past government funding and donations, the CBC has learned — even though the women's emergency shelter has been closed for more than a year.
That's because the board of the shelter kept its bank account after the province closed the shelter's doors.
Furthermore, the province let them keep the money. The decision, according to a national charity watchdog, was legal but also ill-advised.
'Total bungling'
"Manitoba taxpayers saw [money] slip away to Osborne House," said Kate Bahan, of Charity Intelligence, in a written statement. "A total bungling."
In April 2015, the province severed ties with Osborne House after a prolonged investigation raised concerns about its operations and financial records. The investigation at one point got so ugly, the province took over operations of the shelter and its funds and Barbara Judt, its chief executive officer, went on medical leave.
Once the provincial funding ended, the shelter closed its doors. The board, however, was allowed to keep the name, the non-profit number, donations and the bank account. All of it, Barbara Judt said, was rightfully theirs.
It belongs to the corporation called Osborne House.… It was just under half a million.- Barbara Judt, chief executive officer, Osborne House
"It belongs to the corporation called Osborne House," Judt told the CBC. "We got back the money that we had the day [the government] took over. It was just under half a million."
Osborne House still has not physically opened up a new shelter. Instead, It runs a phone line in Judt's home.
"The phones are answered at my home here. I answer the phone," Judt said. "We still continue to offer supports and services to women who call us.… We're still helping families."
Judt is currently the only employee of Osborne House Inc. Asked what kind of salary she was drawing for it:
A provincial spokesperson confirmed they allowed Osborne House Inc. to keep the money, but would not elaborate on the reasons. Board chair Ken Lee, however, told the CBC the province returned the money to them, because they should never have seized the funds to begin with.
"(The province) illegally confiscated our money from the bank account when they took over the shelter," Lee said, in a written statement. "This amounted to theft."
He went on to say the province "eventually returned the funds via five money orders, in an unmarked envelope, with no cover letter or explanation."
He said most of that money came from prior donations to help run the shelter. While the shelter no longer exists, he said Osborne House Inc. "never stopped our operation" and they "continue to offer services to victims of domestic violence."
According to the Corporations Branch, in cases where non-profit agencies fold, they're expected to take any donations and assets they have and donate them in kind to a similar agency. Judt told the CBC they didn't do that because they haven't folded.
Power in brand name
Bahan told the CBC she believes the province should have held back the money. She said they also should have held on to the Osborne House name.
"Brands are the most powerful asset in the charity sector. It's the 'name' donors recognize and trust," Bahan said.
In fact, Osborne House Inc. is still soliciting donations.
Judt set up a Paypal account for those who want to donate ([email protected]).The Osborne House Inc. Facebook page now says it's "a Winnipeg non-profit shelter currently searching for a new building."
The CBC has requested further comment from the province.