A Westbank food bank has been stripped of its charitable status by the Canada Revenue Agency.
According to a letter from the CRA, Bette's Single Family and Seniors Food Bank violated numerous section of the Income Tax Act.
It was found that back in 2008, $45,448 in cash donations was spent on President Bette Ladd's wages, car, and cell phone.
Only $19,626 or 20% of cash donations went to food.
In 2009, only $37,645 went to Ladd for wages and expenses while $25,107 was spent on food for the organization.
The CRA also reports expense receipts were not kept organized and it was impossible to determine if the expenses were related to the food bank or Ladd.
Many receipts contained non-typical food bank items like shampoo, dog food, and single purchase items.
The organizations also pays its fundraisers 25% of all donations received but according to banking records Ladd was the only one compensated.
Ladd says she would pay casual labourers and fundraisers with cash through her own bank account, and then withdraw cash from the food banks bank account.
The CRA has no records of this.
Ladd, who wouldn't go on tape, says she is appealing the decision.