Widespread mismanagement revealed in Lethbridge & District Exhibition report

Brierley told media that these presentations often missed critical context.

“For example, LDE did not communicate a $27 million increase in the total expected project cost until financial difficulties required emergency funding, despite the significant impact this would have on the city and its taxpayers.”

@lethbridgenewsnow Widespead mismanagement revealed in Lethbridge & District Exhibition’s former leadership. Learn more at LethbridgeNewsNow.com #YQL #LNN #Lethbridge #News ♬ original sound – Lethbridge News Now

The investigation looked into a series of purchases made by former LDE CEO Mike Warkentin and the Board of Governors.

“100 per cent of the CEO expenses and 50 per cent of the board expenses tested were not in compliance with LDE policy,” says Brierley. “Expenses filed by both the CEO and board members indicated that money was spent on items such as gifts, luxury hotels, event tickets, alcohol at private functions, car washes, televisions, and other various forms of entertainment.”

The CEO expenses that were deemed non-compliant totalled $32,270 while non-compliant purchases by the Board equaled $15,895.

Brierley described some of the expenses for the Agri-food Hub and Trade Centre as “lavish,” including over $331,000 on custom-made reclaimed furniture and fixtures.

There were also a series of issues related to insufficient policies and oversight, and not opening up the construction of the new facility to multiple bidders.

The report has been forwarded to the Lethbridge Police Service Economic Crimes Unit. LPS confirmed to LNN that they are investigating the matter but they are not able to comment any further at this time.

Lethbridge Mayor Blaine Hyggen says he was “alarmed” and “incredibly concerned” to learn about what appears to him to be a “significant level of mismanagement.”

“Given this was primarily a taxpayer-funded project, we expect and I think the public expects that organizations who receive public funds exercise high standards in managing those funds,” says Hyggen.

When the issues at LDE became apparent, Warkentin and the entire Board of Governors mutually agreed to part ways in December 2023.

A new board, consisting of members of the City of Lethbridge and Lethbridge County, was installed in February 2024.

In the months since the new leadership took over, the Deloitte report notes that some progress has been made but more work needs to be done.

The budget deficit at LDE has been reduced from $5.4 million to $3 million.

Some of the positive initiatives that have already been taken that are in line with Deloitte’s recommendations include:

Addressing staffing and operational gaps
Renegotiating and/or terminating problematic vendor contracts
Enhancing food and beverage services
Obtaining new quotes to understand the future cost of deferred maintenance and other projects such as parking lot renovations
Better utilizing and monetizing revenue-generating spaces

The report notes, however, that LDE generates lower revenue per square foot than other peer facilities and relies heavily on third-party service providers.

It makes a series of recommendations that Brierley says will be discussed in more detail at Wednesday’s Economic and Finance Standing Policy Committee meeting.

The full report from Deloitte can be read on the City of Lethbridge website. A summarized version can be found in this news release from the City.

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by David Opinko

Widespread mismanagement revealed in Lethbridge & District Exhibition report

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