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Minister won't order probe of Innu band's finances
Last Updated Thu, 17 Feb 2005 19:58:05 EST
CBC News
OTTAWA - The federal minister of Indian affairs says he can't order an investigation into how the Natuashish band council manages its finances, in spite of an audit that showed $3 million is missing.
Andy Scott said the RCMP must conduct investigations, not his department, and he's not about to call them in to examine discretionary spending by leaders in the troubled Labrador community.
"It's not for me to make that judgment. It's an operational issue for the RCMP," said Scott.
The federal government spends tens of millions of dollars a year to fight addictions in the Innu village, which was built more than two years ago to house the former residents of Davis Inlet.
Including the $200 million cost of moving the community, Ottawa has spent about $350 million on the band, which has about 700 members.
Despite all the money that's been spent, the levels of substance abuse and violence have increased.
Now an audit of the band council, conducted by the chartered accounting firm Gardner Coombs and obtained by CBC News, shows $3 million missing.
The audit says credit-card spending is uncontrolled and an undisclosed amount of money has disappeared through bank transfers and blank cheques taken from the Mushuau Innu Band Council's office. The funds consist of revenues from businesses the band council owns and operates in the community.
Simon Pokue, chief of the Natuashish band council, said in a prepared statement this week that he will not bend to a petition that has called on the band council to resign so new elections can be held.
Tom Rideout, the Newfoundland and Labrador minister of aboriginal affairs, wants an investigation.
"I will not resign. I have a job to do," wrote Pokue, who accused his opponents of spreading "false rumours" about him and the band council.
As for the financial problems, Pokue says most of the money received from the federal government is monitored by management firm KPMG, and "all discretionary money is subject to professional audit."
Tom Rideout, the Newfoundland and Labrador minister of aboriginal affairs, called Wednesday for the federal government to investigate how taxpayers' money is being spent in Natuashish.
"The funds are not being used to help out the people who need help, which are the children and people of Natuashish," said Rideout.
"The other concern is the allegation of funds being used for criminal activity. It cries out for investigation." |
