Judge hands full control of Saskatoon Lighthouse to MNP auditor

The Lighthouse Supported Living Inc. will be under the full control of a court-appointed receiver following an application from Affinity Credit Union on Thursday.

Following Thursday’s decision, the MNP receiver will now have expanded powers to sell off any and all Lighthouse property to pay off its debts.

The Lighthouse owes approximately $2.6 million to Affinity, about $561,000 to CRA for unpaid staff deductions, and another $578,000 to other creditors, according to court records.

Affinity Credit Union made the case to Justice Allisen Rothery that there would be a substantial risk to the credit union, and “even risk of irreparable harm in the view of the Lighthouse’s insolvency” if a receiver were not appointed.

“The credit union has no confidence in the management of the Lighthouse and would not continue to provide financing to allow the Lighthouse to meet its operating expenses in the absence of a court-appointed receiver,” documents filed at the Court of King’s Bench say.

This move comes nearly two months after the organization was put under the financial control of MNP on an interim basis at the request of two board members, Twila Redekopp and Jerome Hepfner.

Redekopp and Hepfner had stepped in the co-director role after Lighthouse executive director and board member Don Windels was placed on leave in early 2022 following the findings of a court-ordered MNP report which found he had on multiple occasions used the Lighthouse treasury for personal loans.

In March, the provincial appeal court overturned the decision that called for Windels' removal as director, though the organization was already under the effective control of the MNP receiver.

While Saskatchewan shifted away the Lighthouse's emergency shelter funding last year, the non-profit still houses many long-term residents and provides other services.

-With files from Keenan Sorokan