A new federal audit is raising red flags over poor record-keeping and weak financial controls within Canada’s foreign affairs department, warning that missing paperwork has made it difficult to track how taxpayer funds are spent at diplomatic missions abroad.Blacklock's Reporter says the review of real property projects under Anita Anand’s department found widespread gaps in documentation, with auditors reporting there is no clear guidance on retaining records and no centralized system accessible to staff. The findings were detailed in the Audit of Real Property: Service Line Projects, which examined smaller-scale projects valued between $25,000 and $2.5 million.In random checks, auditors found documentation for 7 out of 10 projects was so incomplete that it was “nearly impossible” to determine whether timelines were being met or whether proper oversight was in place. The report identified property management as one of the department’s top five risk areas.The concerns come despite the department overseeing a vast global real estate portfolio, with more than 2,400 properties abroad valued at over $3 billion.The latest findings follow a series of past scandals uncovered at Canadian missions overseas. A 2017 investigation revealed a $1.7 million fraud scheme at the embassy in Haiti, where 13 employees were dismissed for misconduct including falsifying invoices, forging receipts and bid-rigging..Subsequent probes uncovered additional irregularities, including theft of alcohol supplies at the embassy in Guatemala City, misuse of government vehicles by local staff in Pretoria, and a 193% budget overrun at the mission in Bogotá. Auditors said some purchased appliances could not be accounted for, with no evidence showing where they were delivered.One of the most serious cases involved the Canadian Embassy in Addis Ababa, where diplomats diverted $145,000 to construct a pavilion for events and receptions without authorization. According to a previous audit, the project was never disclosed in planning documents and proceeded without approval from headquarters.Auditors found staff deliberately bypassed oversight to avoid rejection, later disguising construction costs as routine maintenance in official budgets. In some cases, invoices were falsified, including one instance where a $6,000 contract was used to justify payments exceeding $20,000.Additional discrepancies in Addis Ababa included $18,000 in missing fuel, partly attributed to a “mystery fuel card,” along with $3,000 in unaccounted cash and a shipping invoice worth more than US$84,000 paid without proper documentation.The audit concludes that despite years of scrutiny and previous reforms, significant weaknesses remain in financial controls and accountability across Canada’s foreign missions, raising ongoing concerns about transparency and stewardship of public funds.
