The Village of Canal Flats has implemented mandatory safeguards, following a legal review of the childcare and affordable housing initiatives with the Arvora Housing and Childcare Society.
Back in 2020, the village accepted a donation of 0.25 hectares for daycare construction.
A condition of the donation was awarding the construction contract to a specific developer and village council waived the standard public tender process.
Following the 2022 municipal election, council recommended the forming of an independent non-profit housing society.
The society received over $4 million in grant money for housing project adjacent to the daycare, but issues were raised over potential conflicts of interest.
In 2025, council instructed external legal council to conduct an independent review of the village’s operational, procurement and governance agreements with the society.
That review is now done and it identified significant governance vulnerabilities. Specifically regarding actual and perceived conflicts of interest, arising from overlapping roles among municipal staff, board governance and contract awards to external vendors.
The village had concluded its formal operation with the society back in 2024 following legal advice.
The village now has implemented three new mandatory, enforceable safeguards to rebuild public trust.
There is now an overhauled procurement framework to be approved by the new council.
Another safeguards is mandatory conflict disclosure, which will require all staff engaged in procurement to declare any real, potential or perceived conflict of interests.
The last safeguard is balanced local purchasing.
Village officials said all future contracting must occur within a rigorous, objective framework that withstands public scrutiny.
The new council may determine that additional actions should be taken.
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