Labrador Innu leaders pocketing band money: audit
A new audit of the books of the band council in a Labrador Innu community reveals community leaders are putting council money in their own pockets.
An August 2005 letter from the accountant hired by the Natuashish band council itself said many questionable practices identified in earlier reviews of the community books are not improving and in some cases are getting worse. The "management letter," obtained by CBC News, exposes a series of problems.
Last year, the audit found that councillors took blank cheques from the office when they travelled but in 2005, the auditor said, "this problem increased during the year."
Councillors were also found to be giving themselves money from the band's accounts. It's an issue that was identified in earlier audits but the accountant found "there was an overall deterioration in this area as advances continually were being made with little or no attempts at collection."
'There were $90,000 in loans that were given out'
A copy of the minutes of a band council meeting leaked to the CBC shows the band chief, Simon Pokue, and another councillor who happens to be his wife were loaned several thousand dollars at a council meeting in the spring of 2005.
"Indian Affairs says there are no loans to anybody in Natuashish," said Prote Poker, a former band councillor who has called on the RCMP to investigate the financial operations of the band.
"But there were $90,000 in loans that were given out to people in Natuashish. And there may be more. That's what we want to find out."
Indian Affairs says it can't intervene
Katie Rich, a former chief of the Innu band, filed a lengthy complaint about the current leadership with the federal Department of Indian and Northern Affairs.
In a written response, the department said it could find no wrongdoing in relation to the spending of money Ottawa allocates for the community.
- FROM FEB. 18, 2005: Minister won't probe Innu band's finances
Rich asked Ottawa to investigate the spending of band council money on travel for people who are not associated with the council but the government wouldn't venture into that allegation.
"Other travel costs associated with non-Indian and Northern Affairs Canada programs or other Band business is the responsibility of Council following Council approved financial management policies, regulations and procedures," the reply from Indian Affairs said.
Band bought plane tickets for non-band members, e-mails say
Copies of internal e-mails obtained by CBC show that councillors routinely approve the spending of band dollars on plane tickets for individuals who have no connection to the band or its business. One e-mail about a resident's travel, written by a councillor to a band council staffer, said, "The band council has paid their tickets to return home."
"I don't think a lot of people are aware what's happening," said Prote Poker. "People will start asking questions now that we have the management letter written by the accountants to the band council. We are going to show this to the people and let them know what is happening to their finances."
Most of the questions are about how the council is spending the money it receives from lucrative business ventures such as its stake in a small airline and money received from Inco's Voisey's Bay nickel project. But because those are band-owned revenues, Ottawa won't express an interest in where the money goes.
"The use of Band owned revenues and the process by which decisions are taken for the use of those funds are the responsibility of the Council," Indian Affairs said in response to Katie Rich's complaint. "Concerns raised about how these funds are expended must be addressed by the community members with their elected officials."
Band's chief declines comment
Band Chief Simon Pokue would not do an interview about the details of the audit and the issues raised by the accountant. Last year when similar questions were raised in a CBC News investigation Pokue promised to hold a meeting in the community to explain the council's spending decisions.
Contacted recently by CBC, Pokue is promising once again to account for his council's spending practices at a community meeting, but he warns that meeting will "only happen if people co-operate, only if people listen."
As for responding to questions about the audit's findings, he said, "that depends on if there is a meeting or not."