Social Justice Co-op says former board member stole $60K in funds

The St. John's-based non-profit organization has had to lay off staff and suspend vital community programming in the wake of the theft.

Loss affects multiple programs and funds administered by the group

Andrew Hawthorn CBC News Posted: Mar 06, 2023 2:23 PM EST | Last Updated: March 6, 2023

A large group of people are gathered in a green room filled with tables and chairs. A woman is speaking at a microphone. — Members of the Social Justice Co-operative of Newfoundland and Labrador gather in St. John's at the Rights of the Atlantic Ocean fundraiser in August. Members of the board say while they remain committed, the theft puts their organization in 'a precarious position.' (Social Justice Co-op N.L./Facebook)

The Social Justice Co-operative of Newfoundland and Labrador says a former board member has misappropriated $60,000 from their collective funds.

The theft, largely of donated funds, has forcedthe non-profit organization to lay off staff and suspendfunding and activities provided by the group, including a fund that helps provide essentials like food and clothing to members of the LGBTQ community.

The group plans to hold a series of meetings beginning this week with members and community partners to address concerns and discuss next steps.

'A precarious position'

Inan internal memo obtained by CBC News, the board said the loss places the organization "in a precarious position."

The Social Justice Co-operative was founded in 2013 in reaction to the closure of the Oxfam Canada office in downtown St. John's.

Their work has focused on addressing climate change, racism and colonialism in the province.

Last month the group championed 82-year-old Shirley Cox, following her eviction by the City of St. John's, drawing attention to the danger of no-fault evictions.

According to the memo, the board of directorsbecame aware of the issue on Feb. 13.

The memo accuses an unnamed board member of the theft, saying they have since resigned.

In addition, the memo says the board hassecured the organization's bank account and strengthened its security protocols and isfinalizing an incident report.

N.L.'s social justice co-op calls on provincial government to end no-fault evictions

St. John's group startled by how much plastic goes to the dump

The loss affects multiple programs and funds administered by the group.

The board has announced a spending freeze to "ensure the SJCNL's ongoing sustainability." Monthly and quarterly activity funds have been suspended, as have all events requiring funding.

This includes the2SLGBTQ+ mutual aid fund, designed "by trans, two-spiritand queer people in Newfoundland and Labradorwanting to help one another duringthe pandemic" toprovide emergency aid, such as money, food, clothing and gender-affirming products.

As well, the group's sole employee, a volunteer co-ordinator position, has been laid off.

CBC News has asked the board for comment. They say they are holding off on speaking to the matter until they have filed an incident report and completed consultations with members.

CBC's Journalistic Standards and Practices|About CBC News

Corrections and clarifications|Submit a news tip|