Clashes with board members behind Main Street Project director’s removal, sources say By: Ryan Thorpe Posted: 7:00 PM CDT Monday, Jul. 20, 2020

Hey there, time traveller!
This article was published 19/07/2020 (1623 days ago), so information in it may no longer be current.

Recently ousted Main Street Project executive director Rick Lees was equal parts ambitious, determined and polarizing during his four-year stint as head of the local social service agency, say people familiar with the decision to part ways.

While Lees successfully courted massive capital investments into the charity and launched major projects aimed at improving Main Street Project facilities, tensions at times flared between him and some members of the agency’s board of directors, which ultimately led to his removal, sources said.

News broke late last week the Main Street Project board of directors voted to replace Lees with a new executive director July 16. His departure from the agency was effective July 17 and some staff members were informed of the decision that day.

But the decision to part ways was leaked to the press before Main Street Project could put out an official statement announcing the change.

While some reports have linked Lees departure to an ongoing audit of the agency’s books by the province’s auditor general — launched in the wake of accusations of financial impropriety at the charity — multiple sources insist that isn’t the case.

Instead, the situation had been coming to a head for months, with tensions between Lees and some members of the board ratcheting up, sources said.

“The parting of ways with Rick, I’d like to think, is a mutual agreement that we’ve come to. It is in no way connected with the (audit). It was a decision by the board that we wanted to move in a new direction,” said Vince Warden, chair of the Main Street Project board of directors.

It appears the situation had become increasingly polarized, with Lees at times pushing the agency in directions that weren’t consistent with what a majority of the board wanted.

Under Lees’ tenure, the Main Street Project attracted significant government funding and embarked upon a major project to improve and expand the shelter’s facilities. He also guided the agency through its response to the COVID-19 pandemic, which included rapidly establishing a new emergency shelter and isolation complex.

The audit into the agency’s books stems from June 2019, after a former Main Street Project accountant approached the Winnipeg Regional Health Authority to complain about funds being misused. The matter was referred to the auditor general.

The audit is ongoing and it’s not clear when it is expected to be finished, Warden said.

“The parting of ways with Rick, I’d like to think, is a mutual agreement that we’ve come to. It is in no way connected with the (audit). It was a decision by the board that we wanted to move in a new direction.”
– Vince Warden, chair of the Main Street Project board of directors

“It’s taking longer than normal because of COVID. Everyone is working remotely and there are a number of files back at the office that they haven’t been able to access. The last time I spoke to the (auditor), about six weeks ago, he didn’t commit to any date when it might be completed,” Warden said.

However, as soon as the Main Street Project was made aware of the allegations — which included both claims of financial mismanagement and human resources complaints — Warden said it hired two external firms to investigate.

“One of them was an accounting firm. We wanted them to investigate the allegations quickly. They did a special audit and they assured us there was no substance to the allegations,” he said.

When reached for comment, Lees, who is currently on vacation, said he would address the situation in the near future.

In 2006, Lees was dismissed from his job as vice-president of the Burntwood Regional Health Authority — with two other employees — following a management audit that found financial irregularities, according to a report from the Thompson Citizen.

“It’s taking longer than normal because of COVID. Everyone is working remotely and there are a number of files back at the office that they haven’t been able to access. The last time I spoke to the (auditor), about six weeks ago, he didn’t commit to any date when it might be completed.”
– Vince Warden on the ongoing audit

The Burntwood and NOR-MAN health authorities were amalgamated to create the Northern Regional Health Authority in 2012.

Lees was also terminated from a consultant role with the Sudbury Regional Hospital in Ontario in 2001 after questions were raised about his educational credentials, according to a local news report. Lees reportedly later filed a lawsuit for breach of contract, although it’s unclear what the outcome of the suit was.

The Main Street Project board of directors was aware of both situations when Lees was hired as executive director, Warden said.

“They were aware of those situations. They did their due diligence and found there was not sufficient reason not to hire Rick. He was the best qualified person available for the position,” Warden said.

The Main Street Project board of directors has scheduled a meeting Tuesday to discuss naming an interim executive director.

— With files from Niigaan Sinclair

ryan.thorpe@freepress.mb.ca

Twitter: @rk_thorpe