More than $100K missing from SJSE 'definitely theft,' city councillor says

More than $100,000 is missing from St. John's Sports and Entertainment, says city councillor Art Puddister — and according to him, it's not the first time money has disappeared.

Puddister said he's been informed the missing money is "definitely theft," and suspects it could be linked to $10,000 he said disappeared from petty cash in 2009.

• Missing money at Mile One Centre: Forensic auditor conducting review

The councillor at large says the suspect pool is limited.

"Are these two incidents linked? I don't know," Puddister said. "The amount of people who could be involved in this — one, two, three — you can count on one hand."

St. John's Sports and Entertainment is responsible for Mile One Centre and the St. John's Convention Centre.

Discrepancies were found in SJSE's financial books earlier this year, Coun. Sandy Hickman told CBC News last week.

Hickman, who is the council representative on the board, was adamant it's too early to know if the missing money is theft, or merely an accounting error.

Details should not be discussed and police should not be involved until a forensic audit is completed, Hickman said.

Sitting two seats to Hickman's right in the council chamber, Art Puddister held different views.

"I believe the RNC has something to add to this," Puddister said. "They have trained investigators and people who can go out and interview people. The amount of money here is substantial."

Puddister said the money was taken over time and that the auditor is looking back at deposits and journal entries from three or four years ago.

He said the deputy city manager of finance informed him the money was definitely stolen.

"If the deputy city manager says the money is definitely missing, there's definitely a theft, definitely fraud … the RNC should be brought into this," he said.

According the Puddister, the amount is more than $100,000 but less than $125,000.

He also told the media of an incident in 2009 in which $10,000 was stolen from a cash box.

Puddister said when SJSE staff checked an envelope thought to hold the money, all they found was newspaper clippings.

On Tuesday night, sitting council members voted unanimously to extend the appointment of SJSE chairman Robert Verge for one more year.

In messages to CBC News moments after the vote, Coun. Jonathan Galgay, who is travelling and was not present for the vote, said he would have voted against the motion.

"Rushing reappointments during a time when I asked for an independent review is less than impressive," he said. "Everything should have been put on hold until the matter is reviewed further."

Galgay is pushing for a full review of SJSE to find efficiencies and promote more transparent reporting procedures.

Last week, Galgay tabled a letter from Verge, in which the chairman called the councillor's push for a review "unfortunate and ill-informed."

Galgay also said the police should have been brought into the investigation immediately.