'We had concerns:' Subpoenaed Veterans Affairs officials testify in Métis National Council trial

Federal officials testified under subpoena this week about whether former Métis National Council (MNC) leaders mismanaged millions of dollars earmarked for the recognition of Métis war veterans, as a high-stakes civil trial continues in Toronto.

A senior official testified Friday that Veterans Affairs Canada (VAC) was immediately concerned when it learned of a "service delivery agreement" transferring control of the publicly funded program from MNC to the Manitoba Métis Federation (MMF) in 2021.

"We had concerns over whether it was aligned with the contribution agreement or not," said Dennis Manning, a senior director of financial and re-establishment policy at VAC, in Ontario Superior Court.

MNC's current leaders dispute the service agreement. They allege a past administration improperly diverted nearly $9 million to the MMF as part of a broader conspiracy to harm the council and benefit themselves shortly before MMF broke from the national group in September 2021.

The money came from a $30-million recognition fund for Métis Second World War veterans, which VAC provided to the MNC under a 2019 contribution agreement. Manning said Canada was concerned the contribution agreement may have been breached.

Poring over documents in the witness box, the public servant testified Canada only learned of the service delivery agreement when newly elected MNC president Cassidy Caron reached out in November 2021.

Caron's administration sued in January 2022, alleging former MNC president Clément Chartier and David Chartrand, who is MMF president and was also MNC's minister for finance and veterans, orchestrated the program transfer as part of a "scorched earth policy."

The statement of claim seeks $15 million in damages, $1 million in punitive damages and return of the veterans fund and other disputed assets. The sweeping claim names about a half dozen other former employees and consultants as defendants.

MMF co-founded the MNC in 1983 to advocate for Métis rights on the national stage. Chartier and Chartrand, both long-time politicians, deny any wrongdoing, arguing the service delivery agreement validly outsourced program administration to the MMF. 

"Not one cent of the veterans fund has been paid to the MMF, Mr. Chartier, Mr. Chartrand or any other defendant. Rather, the funds have exclusively been used for the purposes contemplated," reads Chartier's defence.

In cross-examination, Manning clarified VAC hasn't seen the disputed service delivery agreement and based its concerns on information the Caron administration provided. He acknowledged that the minister retains the right to audit the program, yet has never done so. 

VAC hasn't officially taken a stance on whether the contribution agreement was breached, he added, while agreeing that nothing in it bars consulting or contracting for services.

'Major political ramifications'

On Thursday, VAC manager Jeff Gallant testified the department was granted authority to enter into an agreement with MNC — and only MNC —  to facilitate $20,000 individual recognition payments and approve commemoration projects.

"They were the recipient of the funds, and it was expected that they would be delivering the program," he said in direct examination by MNC's lawyer.

"VAC did not expect any other party to be involved."

In cross-examination, however, Gallant confirmed VAC dealt mainly with MMF officials from the outset, but he said this raised no questions because MMF was perceived as representing the national organization at the time.

Before MMF's withdrawal, MNC had five members but now counts just two. Saskatchewan and British Columbia withdrew last year, leaving only Alberta and Ontario.

The MNC's lawyer Robert Cohen previously described the conflict as a "political civil war." The nine-week trial began earlier this month and already put years of political infighting and governance gridlock under the microscope.

The dispute dates back to at least 2018, when the Chartier administration sought to suspend the Métis Nation of Ontario over concerns it had allowed thousands of non-Métis to join. That led to a long struggle over Ontario's status in the council, culminating in the court-ordered 2021 election.

Evidence presented Thursday suggests officials in Ottawa were well aware of the political aspect to the feud. Gallant was asked about a September 2020 internal document that said the MNC designated MMF as program administrator "without approval from the board of governors."

"This means that MMF has been making decisions on program administration without including governing members with whom they are currently in disputes with," said the document, as read in court.

"This in turn has major political ramifications."

Gallant said he wasn't involved directly at this time and couldn't elaborate on those political ramifications. The other VAC witness wasn't asked to elaborate.

MNC also alleges the former administration offered lucrative payouts for consultants and engaged in excessive or inappropriate spending on gifts and benefits for themselves and their associates, among other things.

The defendants categorically deny the allegations, with the MMF and Chartrand calling the case attempted character assassination and a legally baseless political vendetta.

The trial continues.