Kerry McCluskey
Northern News Services

Spence Bay (Feb 04/02) - The hamlet of Taloyoak will undergo a financial audit to determine if its former senior administrator is responsible for its deficit.

Cecil Matthews is no longer in charge of the hamlet's business. He pleaded guilty Jan. 23 to 20 fraud-related charges in an Alberta courtroom and is serving a nine-month sentence.

Mike Rafter, the director of finance for the Department of Community Government and Transportation, said last week several people from the department planned to fly to Taloyoak today, Feb. 4.

In question is the audited financial statement for fiscal 2001, which put the hamlet $478,129 into the red. Rafter also said the current financial statements will be looked over.

"We felt it was prudent in light of the recent charges to go in and have a look and evaluate the situation and see if there are any financial improprieties," said Rafter.

"The prior year's financial statements are being scrutinized at this point and the current year's financial statements are being reviewed."

Rafter said the length of the audit will depend on what department staff find. He said an audit report would be compiled by the end of fiscal 2002.

Matthews, 54, is said to have committed the crimes between June and September of 1998 while he worked at a construction company in Fort McMurray, Alta.

"In September (of 1998), personnel of the company reported to the RCMP some missing cheques and money and that's how everything started," said Vanessa Gurski, an RCMP spokesperson in Fort McMurray.

A police investigation resulted in numerous charges against Matthews, including 10 counts of forgery, 10 counts of uttering forged documents and one count of theft under $5,000.

Matthews was assigned a court date, but failed to show up. An additional charge of failure to appear was added to his record.

Hiding in Nunavut?

Matthews surfaced in Taloyoak in 2000, but left for a brief stint to work for the Department of Community Government and Transportation in Iqaluit.

He returned to Taloyoak a few months later to work as a comptroller and senior administrator at the hamlet. Matthews then resigned from the hamlet Jan. 11 to resume employment with CG&T as a senior municipal officer in Cambridge Bay

However, prior to leaving Taloyoak, RCMP picked Matthews up for impaired driving on Jan. 11. It was that charge that alerted Nunavut police to the Alberta warrant.

Matthews was sent to Fort McMurray Jan. 19. Gurski said after Matthews pleaded guilty to the charges, he was sentenced to prison and ordered to pay $25,000 in restitution.

Elwood Johnson, a Cambridge Bay resident and a longtime colleague of Matthews, had no idea the man was wanted for fraud.

"He had the reputation of being a good accountant," said Johnson, the senior administrator in Cambridge Bay. "I wasn't dealing with him on a day-to-day basis so I had no reason to (suspect him)," he said.

Matthews is scheduled to appear in court in Taloyoak March 7 to answer to the single charge of impaired driving. Taloyoak RCMP Const. Phil Reddy said the courts have yet to decide how to proceed given that Matthews is currently serving a prison sentence in Alberta.