Surrey mayor claims public deposits safe despite alleged $2.5-million fraud

Surrey Mayor Brenda Locke reassured developers and the public on Friday that the city’s financial safeguards remain intact, despite recent revelations of a former city finance clerk allegedly defrauding taxpayers of over $2.5 million. The alleged fraud was uncovered through the diligence of city staff, with irregularities being addressed promptly.

Locke emphasized the importance of transparency in the city’s financial management, stating, “We are very, very concerned and that’s why we put all these processes in place so we could make sure that the public purse is managed with care.” She expressed confidence in the processes put in place to prevent such incidents and urged the public to have faith in the city’s financial integrity.

The investigation into the missing funds revealed that a former city finance clerk, who resigned in January 2024, is suspected of funneling hundreds of cheques to herself by manipulating the system used to take deposits from developers. The woman, who had worked for the city for two decades, allegedly diverted funds to accounts under various names, including her former legal name, her mother’s name, and the name of her cake baking business.

The search warrant obtained by CBC detailed how the woman allegedly appropriated funds from accounts containing deposits made to the city over the past 40 years. The cheques, totaling more than $2.5 million and written between 2017 and 2024, were primarily made out to her business. It was revealed that the woman had a side business as a cake baker and was known to be an avid gambler, according to co-workers.

The city filed a lawsuit against the woman and her mother in February 2024, alleging fraud, conversion, conspiracy, and breach of fiduciary duty. The woman denied the allegations, as did her mother, who claimed she was unaware of the misappropriation of funds.

Locke confirmed that the woman’s husband, who was also a City of Surrey employee, is no longer employed by the city. There were no longer any employees with connections to the investigation, she stated. The search warrant also raised concerns about the woman’s access to computer files following her suspension, as several files related to the cheques had been deleted and later restored.

While the allegations against the woman and her mother have not been proven in court, the city continues to work diligently to address the situation and uphold its financial safeguards. Locke reiterated the city’s commitment to transparency and accountability, urging the public to have confidence in the city’s financial management processes.