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Ombudsman clears Métis settlement
Mac Olsen
for South Peace News
The Métis Settlement Ombudsman in Edmonton, John F. Brosseau, has cleared the East Prairie Métis Settlement of any wrongdoing regarding financial mismanagement.
South Peace News has obtained a copy of a letter Brosseau wrote July 8, 2009. One of the complaints is the settlement was being managed in an “irregular and improvident manner.” According to the letter, Pricewater- houseCoopers conducted an investigation and the government appointed the firm as the settlement’s comptroller June 4, 2008.
“With the appointment of a new council in late 2007, the concerns of the continuation of alleged improper practices were minimized,” says Brosseau.
There are also three complaints about East Prairie Investment Corporation, including a review of approval practices and procedures. Four recommendations were made:
* Loans taken out by EPIC should not be used to pay Settlement debts.
* Council should consider the auditors recommendation and consolidate EPIC back into the settlement until the entity can show a strong financial position.
* In the event council decides to keep EPIC operational, consideration should be given to having persons with a proven business background sit as the board of directors.
* A maintenance plan and a replacement schedule for all the equipment should be drafted, approved by the proper governing bodies and implemented by both EPIC and the settlement.
Brosseau also addresses a complaint EPIC was spending money inappropriately, such as a $100,000 for boundary line cleanup and $30,000 for a quad rally.
He says it was dealt with in a forensic review and an investigation concluded a forensic audit should be conducted for EPIC. Brosseau makes the same four recommendations above for the issue.
The last complaint Brosseau addresses is the use of EPIC funds to improve lands owned by a former councillor, who is not identified in the letter.
“It was alleged that this purchase was never budgeted for,” says the letter. “The complainant further alleged that the administrator was in a conflict of interest, as the issue involved his brother.”
PricewaterhouseCoopers conducted a forensic investigation and determined there were “a number of problems related to the budgeting process.” Four recommendations were made:
* EPMS should comply with the deadlines as prescribed in the financial administration policy and consider the introduction of a measure of council and administration accountability for meeting budget targets.
* EPMS should ensure that the budget documents maintain an accurate record of persons voting at the various budget bylaws.
* The administration should work with the auditors on financial planning and budgeting.
* The settlement should invest more time and energy in the budget and planning process and incorporate plans for the upcoming fiscal period with a review of council’s longer term (one to three year) strategic vision for the settlement.
Brosseau is satisfied there will be increased accountability and better management procedures once the recommendations are enacted. He considers all the issues closed and the MSO has no further obligations.
However, Larry BigCharles is critical of the council and has made allegations. BigCharles dropped off a list of his allegations to South Peace News July 16. He was supposed to lead a protest in East Prairie the next day and was contacted that morning to verify it was going ahead. He said it was.
The settlement’s administration office was closed at noon for the day and approximately 20 people stood around in the parking lot waiting for BigCharles to arrive, but he never did. Several attempts were made later to contact him for an explanation, but couldn’t be reached.
One allegation BigCharles makes is housing selections are “unfair.”
“Housing contracts (are) not equally split among members,” he says.
Also, there is “nepotism” for job postings and “misuse” of settlement equipment by staff and council members.
“Members have to pay $500 to use equipment while others do not pay a cent,” says BigCharles. “And who pays for breakdowns?”
He also complains about the administrative and reporting procedures. He says only lawyers are handling the settlement’s policies and bylaws and the minutes of monthly meetings are not being posted in a timely manner.
Those waiting outside the administration office talked amongst themselves and two people were willing to be interviewed.
Peter Patenaude wants a meeting with Aboriginal Relations Minister Gene Zwozdesky.
“All activities of council and administration should be shut down until further notice, until … settlement residents can meet with the minister,” says Patenaude.
“He’ll push to get it going. Why not? Nobody’s saying anything here. This place isn’t going anywhere. That’s the way I feel.”
Raymond Patenaude-Supernault wants better reporting from the council and administration.
“We feel that we’re not being treated fairly. There should be general meetings (and) public notification of what’s going on as far as the general council. They’re not getting enough information out to us.
“As far as funding being spent through our budget, we don’t think it’s fair that a lot of our council members are taking our own settlement members to court and they’re being sued. It’s just a misuse of funds.”
He also says there are more issues than those raised by BigCharles and many people are afraid to voice their concerns and opinions to council.
Councillor Louis Haggerty said council will not make any statements until later.
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