Halifax's multicultural festival has been a sign of summer's start for the past 32 years, but CBC News has learned this year's event is not going ahead due to financial issues.

The Multicultural Association of Nova Scotia (MANS), founded in 1975, has been ordered by court to pay more than $26,500 in outstanding debts dating back to the 2014 festival.

"I'm surprised that it went this long," former president John Danch told CBC News.

"They've been going downhill for quite a while."

The Multicultural Festival featured live dance and music acts, for example, this performance from 2013. (CBC)

Funding cut

Board member Debbie Phinney confirmed the festival has been cancelled for this summer.

It had been scheduled for the weekend of June 17 near the Seaport Farmers' Market on Halifax's waterfront. Phinney declined an interview, saying she wanted to wait until the group's restructuring plans are confirmed.

The Multicultural Festival is normally held on the waterfront near the Seaport Market in Halifax. (Andrew Vaughn/The Canadian Press)

Cultural, ethnic, racial diversity

Former volunteer and board member Sylvia Parris didn't know the festival was cancelled until informed by CBC News. She said the festival meant a lot to her, in part because she made a lot of friends through it after moving to Halifax in the late 1990s.

"I'm just speechless. I know, for anyone, fundraising is a challenge," Parris said.

"The folks that volunteered with it and the folks that worked with it wanted it to be successful because they had this underlying value about the importance of cultural, ethnic, racial diversity."

The Russian Society of the Maritimes performed at the festival. (The Russian Society of the Maritimes/Facebook)

According to the Canada Revenue Agency, the association received more than $80,000 of government funding in the 2014-2015 fiscal year. That year, the organization got $60,000 from the Communities, Culture and Heritage department.

The province cut the amount of funding in half last fiscal year to $30,000.

The festival hasn't been funded this year because of a lack of information from organizers, a department spokeswoman said.

"We have asked for routine financial information, but have not received it," Krista Higdon said by email.

'Not one bit shocked'

Danch, who served until 2009-2010, said the organization struggled as far back as 2008 to pay the bills.

"I'm not one bit shocked at it. We did our best to straighten it out. It was an impossible situation," Danch said.

"The executive and the membership were totally kept in the dark...We had no concept really how bad the internal situation was as far as finances."

The association's executive director, Mohamed Ifthikhar Illyas, did not respond CBC's requests for an interview.

The festival hosts a variety of musical and dance performances, including from City Natives and Roxy and the Underground Soul Sound last year. (Nova Scotia Multicultural Festival/Facebook)

'Don't run away'

Vendors tell CBC News they haven't been informed about the festival's cancellation — despite registering months ago.

"There is no reason not to communicate," said Ingrid Dunsworth, owner of the Cake Lady.

Dunsworth said she has heard little since having her registration cheque for $1,005 cashed.

"You stay, you deal with the problem, you ask for help and you will be helped," she said.

"You have to stay professional. Everyone has sometimes problems, but you don't run away."

Ingrid Dunsworth, owner of the Cake Lady, thought she would be selling her baked goods at the festival in June. (Angela MacIvor/CBC)

'One of the best around'

Vendor Jonathan Roberts, who co-owns Mary's African Cuisine, said the festival has been a bit disorganized, and struggled with finances, but they always pulled through before.

"The festival is one of the best around. Thousands of kids come out. There are people from every immigrant group," Roberts wrote in an email to CBC.

"Two years ago, we had the FIFA World Cup playing on TV in the bar and hundreds of people were watching. It is a lot of fun."

His registration cheque for around $1,600 was cashed February 24, he said.

Many people have been caught off guard by the festival's cancellation. (Nova Scotia Multicultural Festival/Facebook)

Lawsuits over unpaid debts

Boxes can be seen inside the Marginal Road office and a sign posted on the door says the association is longer based there. The festival website, multifest.ca, is down as well.The phone number is not in service.

The Multicultural Association of Nova Scotia is no longer in its Marginal Road office. (Angela MacIvor/CBC)

Even the court had trouble tracking down Illyas, the association's executive director.

The organization is the subject of two separate 2015 lawsuits over unpaid debts, court records show. In order to serve papers related to a civil suit from RBC, a court messenger had to go to Illyas's home in Dartmouth, documents show.

In the end, MANS was ordered to pay RBC $23,015.25 on Feb. 19.

The association's office is packed up. (Angela MacIvor/CBC)

RBC had been a sponsor of the festival starting in 2008, but pulled its funding in 2013.

The bank was "very proud" of its involvement, bank spokeswoman Lori Smith said by email. She declined to comment on the lawsuit or why the sponsorship ended.

A small claims court also ordered the group to pay $3,518.75 to Bourque Security Services, after it only paid $1,000 of its security bill from the 2014 festival in Halifax.

The festival normally ran one weekend in June. (CBC)

'A great loss'

Danch himself took MANS to court in 2011 over unpaid expenses, but lost the suit.

"We're suffering a great loss in not having an effective multicultural organization," Danch said.

"The communities are losing because there's so much positive come out from having these multicultural festivals and multicultural events where people learn from one another."