Auditor General Tyson Shtykalo has released a report examining allegations of wrongdoing in several Manitoba municipalities along with the province’s oversight of local operations.
Shtykalo notes that municipalities rely heavily on provincial funding to maintain governance, infrastructure, and services.
“The Province of Manitoba provides significant funding to municipalities to support local governance, infrastructure, and services,” Shtykalo says. “With this funding comes a responsibility—both for municipalities and the Department of Municipal and Northern Relations—to ensure effective stewardship of public resources.”
Westlake-Gladstone cyber breach sparks probe
The report was launched after a request from the Minister of Finance under Section 16 of The Auditor General Act, following a major cybersecurity breach at the Municipality of Westlake-Gladstone.
Between December 19, 2019, and January 5, 2020, more than $472,000 was withdrawn without authorization from a municipal account. The audit found the municipality failed to conduct a root cause investigation, leaving it without clear knowledge of how the breach happened or how to prevent another.
“This highlights the need for all municipalities to implement controls based on a recognized cybersecurity framework, to protect them from cybersecurity threats,” Shtykalo adds.
Local governments under scrutiny
The report also examined allegations raised through public tips and information shared by the Department of Municipal and Northern Relations. Of six municipalities reviewed, three had allegations at least partially substantiated.
In Swan Valley West, two fire trucks were purchased without tendering, a violation of the municipality’s own purchasing policy. In Springfield, councillors submitted about $3,000 in ineligible travel claims over nine months, violating a municipal bylaw. In Ethelbert, a former head of council acted unilaterally, breaking governance rules and conflict-of-interest standards.
Calls for stronger oversight
The audit further found that the Department of Municipal and Northern Relations lacks a complete oversight system to follow up on complaints, track provincial grants, and review financial submissions from municipalities.
Shtykalo continues that five recommendations have been made to improve municipal cybersecurity practices and to strengthen provincial oversight of public funds distributed to local governments.