Ousted women's shelter continues to collect donations as taxman investigates

Osborne House Inc. had more than $500,000 in assets, according to its latest tax returns; and continues to accept donations, despite the fact the former women's shelter does not physically exist anymore — and that's caught the attention of the Canada Revenue Agency.

"I am so upset," said Melissa Cook Crate, who works with women in crisis. "There are Aboriginal women at risk who really need these services, these resources. I have a lot of questions and [Osborne House] won't give me the answers."

The Canada Revenue Agency has opened an investigation into the former shelter, which closed its doors in April 2015.

The CBC approached Osborne House executive director Barbara Judt in the spring to ask why she was still accepting donations despite the fact the shelter had closed its doors one year earlier.

The province had severed ties with Osborne House after a prolonged investigation raised concerns about its operations and financial records. 

But while the province shut their doors, they allowed the board to walk away with the money — half a million dollars — that had previously been granted to them when they were actually running the shelter. At the time, critics said it was legal, but they called it a "total bungling" and said "Manitoba taxpayers" saw that money slip away.

By law, charities that fold have to donate any monies to a similar charity. But Osborne House's executive director said while the province closed their doors, Osborne House didn't fold.  They therefore kept the money.

Provincial funding ended, but the board was allowed to keep the name, the non-profit number, donations and the bank account.

• Ousted women's shelter keeps 'half million dollar' bank account
• Manitoba government says Osborne House will remain open

At the time, Judt told the CBC the organization had plans to reopen in a new location. Until then, she said, Osborne House was still in operation, though that consisted only of a phone line, where women in crisis could leave a message.

"The phones are answered at my home here. I answer the phones," Judt said. "We still continue to offer supports and services to women who call us."

At the time she confirmed she was the only employee but would not disclose her salary.

But the 2016 tax returns filed to Canada Revenue Agency by Osborne House tell a different story. The returns cover the time frame from April 2015 — the same month the province halted funding — to March, 2016.

They state that Osborne House Inc. still provided "emergency accommodation" to women in crisis. They listed 42 full-time staff, each of whom made $39,999 or less. It also listed 42 part-time or part year staff, who made a total of $61,175. 

Osborne House still has not reopened in a new facility. The phone line remains. Judt's voice message advises callers in crisis to call a different number (Willow Place, the provincially funded shelter that replaced Osborne House). All others can leave Judt a message.

That alone disturbs Melissa Cook Crate. Women in crisis call Osborne House seeking immediate shelter, she said.

"If it was a woman being abused looking for help — I mean, I can't imagine what that must feel like," Cook Crate said. "That level of hopelessness when they say they're there, but they're not there."

Osborne House is also still accepting donations.

A storage facility holds everything from clothing to diapers. In April, Osborne House board chair Ken Lee said these were being used to help other charities.

"We have been assisting other charities. We have made significant donations to help women on northern reserves," Lee wrote in an email. He would not reveal which charities.

The 2016 tax returns also list assets and donations collected in the year after the province shut Osborne House's doors.

It lists total assets of $514,794, which includes the more than $400,000 the organization was allowed to hold on to when it severed ties with the province. It also states that it spent more than $90,000 on "charitable activities."

Then there are the cash donations; it states other registered charities donated more than $38,000.

Canada Revenue Agency confirmed it is now investigating, through the National Leads Centre, an arm of CRS.

The CBC has made repeated requests for comment from both Barbara Judt and Ken Lee. They had not responded by publishing time.