Steve Buist reporter for the Hamilton Spectator has written a major expose’ of Gospel for Asia. Published today, a shorter version will also appear in the Toronto paper tomorrow. The headquarters for GFA-Canada is in Hamilton so the story is a local and national one there.
In the story, GFA-Canada Director Pat Emerick denies one of the first claims told to me by GFA-US COO David Carroll. Emerick denied that Canadian donations had been lumped together with American donations:
“There has been no mingling of funds and field partners can absolutely account for the originating source of all deposits,” Emerick stated.
“All funds sent to the field have been accounted for separately in annual reports to the respective international boards as well as according to national accounting standards in the receiving countries,” Emerick stated.
He is not exactly answering the question. The fact is that Canadian funds were not reported to the Indian Home Ministry as coming from Canada. In May 2015, Carroll told me that Canadian funds were lumped in with American funds. He said there was no requirement for them to be reported separately.
The Canadian funds were combined with U.S. funds by our auditor in India for various accounting reasons. There is no requirement that they be reported separately.
Buist’s assessment is that the funds were combined without proper reporting.
Meanwhile, Gospel for Asia officials in the U.S. told an American evangelical financial accountability group last summer the charity didn’t exert any control over its Indian affiliates and how they spend the money.
Taken together, it means Canadian donations were lumped in with the American donations sent to India but the American charity didn’t exercise any control over the Indian affiliates receiving the money.This would appear to be in violation of the CRA’s rules that state the Canadian charity must maintain control and direction of its donations and be able to account for how they have been spent, even when done through an intermediary.
Buist covers the waterfront and cites Bruce Morrison and me on a variety of financial matters. The entire class action suit is embedded online.
Readers of this blog will recognize much of the facts but Buist does a very fine job of weaving it all together in one place.