CNIB Statement Regarding Atlantic Canada Lottery Kiosks

2/9/2015

​Below please find the statement regarding lottery kiosks in Atlantic Canada that CNIB released to the media on Friday, February 6.

Statement in response to media inquiries related to CNIB’s lottery kiosks in Atlantic Canada

Friday, February 6, 2015

At CNIB, we are committed to helping Canadians who are blind or partially sighted, ensuring that they have the confidence, skills and opportunities to fully participate in life. As part of this commitment, CNIB has an agreement with Atlantic Lottery Corporation (ALC) to manage 17 lottery kiosks throughout Atlantic Canada, which are operated by independent contractors to raise funds in support of CNIB programs and services for Atlantic Canadians who are blind or partially sighted.

We conduct audits of each lottery kiosk business and investigate accounting irregularities when they occur. In keeping with our commitments to supporters and lottery customers, we pursue legal action as a last resort against kiosk operators whose signed contracts with CNIB make them responsible for any lottery fund variances.

CNIB is actively involved in four court cases in Atlantic Canada involving independent contractors of kiosks. Each of these cases involves independent contractors who have had their contracts terminated by our organization after they failed to meet CNIB’s financial management practices or failed to clarify and reconcile the variances revealed by CNIB’s auditing processes.

When the shortfalls were discovered in the on-site audits, we shared the results with the independent kiosk operators and presented them each with the option to remedy the variances.

We are a not-for-profit business, and our number one priority is making a difference in the lives of as many Canadians as possible. Because our funds raised go towards making our programs and services possible, we hold all CNIB stakeholders to the highest possible standards and take any situation with missing funds seriously.

Certainly, this has been a disappointing and upsetting situation for all involved – both our charity and these kiosk operators. However, the legal actions being taken aren’t about accusing individuals of taking the funds directly, but rather about holding business owners responsible, per their contractual agreements, for shortages in collecting funds that help benefit Canadians who are blind or partially-sighted.

With regards to the claims made under certain labour codes, any discussions by the CNIB have been part of a process that began in July, 2014. We entered into these negotiations in good faith, recognizing that this is a difficult situation for all involved. Our preference is not to conduct our business in the court of public opinion and instead rely upon the legal processes that exist in our communities. Given that all of the cases in Atlantic Canada are presently before courts and tribunals, we cannot speak about the specific operators publicly or share the evidence gathered by the CNIB.

As a matter of policy, CNIB does not share details related to human resources or specific individuals, including former employees and those with whom we conduct business as we consider that private and confidential. When we enter into discussions with individuals – be they employees, contractors, partners, suppliers, clients, donors or volunteers – we consider those conversations to be private matters and respect the process involved.

We look forward to resolving each of these cases in due course.

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