First Nation’s default triggers new management
The Liard First Nation has defaulted on its funding agreement with the federal government,
The Liard First Nation has defaulted on its funding agreement with the federal government, putting it into third-party management following supposed financial impropriety, Aboriginal Affairs said today.
“The Liard First Nation is being placed in third-party management to ensure the funding provided to this community is being spent effectively,” the federal department stated in a release this morning.
Third-party funding is generally applied as a last resort.
“The goal is to increase the capacity of the Liard First Nation so that it may return to fulfill its obligations towards community members,” Aboriginal Affairs said.
The new arrangement means all federal cash for the band will be redirected to a third party — in this case, the Vancouver-based Ganhada Management Group — for administration of funds for programs and services.
Ganhada’s mandate may also include acting as a facilitator between Liard and its creditors to negotiate debt repayment plans.
Chief Daniel Morris did not return a call from the Star by press time this afternoon.
He has not responded to interview requests since he took office following the election on Dec. 16, 2013.
A default occurs when an auditor flags concerns with a First Nation’s financial statements or when the band’s “financial position” — including bankruptcy — puts its program delivery at risk, compromising “the welfare of the community,” Aboriginal Affairs states on its website.
Liard stated it would produce an audit before the election of a new administration last December but failed to follow through.
Earlier this year, Aboriginal Affairs was seeking Liard’s self-audited statements from 2011 to 2013.
Days after he stepped into his new leadership role, Morris laid off all non-essential staff — about 40 people.
“After a review of our financial situation, council has concluded that we are in a very difficult situation,” Morris said in a release last January.
“We see the layoffs as a temporary situation. As soon as we are able, we will be rehiring our staff,” he continued.
That has not happened.
The Star was unable to reach former chief Liard McMillan.
Aboriginal Affairs said it “does not provide the specific reasons why a First Nation funding recipient is under default management,” in accordance with the Privacy Act and Access to Information Act
Allan Okabe, the owner of Ganhada and a member of the Kitsumkalum First Nation near Terrace, B.C., confirmed he had “just arrived” in Whitehorse to meet with federal public servants.
“We did have meetings earlier with the department here at Aboriginal Affairs,” he told the Star this morning.
Aboriginal Affairs insisted that income assistance will not be affected by the administration shift. That social support is already being doled out by another third-party firm based in Calgary.
The department also said “essential programming” like education, capital operation and maintenance funding would continue under Ganhada.
Throughout the default period, Morris and his four councillors will remain in place along with their financial management staff.
“The chief and council of a First Nation under third-party management continue to be responsible for setting the strategic direction of the First Nation, and for exercising their governance powers such as by-laws or governance resolutions,” Aboriginal Affairs states on its website.
In 2010, 23 First Nations were in third-party management. As of Dec. 1, 2011, only 12 First Nation communities fell under the designation, demonstrating that fixing financial foul-ups is not necessarily a drawn-out process.
“In order to emerge from third-party management, a First Nation will need to establish an action plan that addresses the defaults and shows sustained results (e.g. deal with health and safety difficulties, continuity of service delivery to all members, and steps to develop capacity),” Aboriginal Affairs states.
The decision to “de-escalate” is made by the department’s regional director.
In 2003, Morris stepped down from his first stint as chief after five years due to the controversy — and subsequent jail time — over his brutal two-hour assault on his longtime common-law wife near Lower Post, B.C., that year.
Comments (5)
Up 7 Down 0
mike madder on Sep 6, 2014 at 10:48 am
It is about time these steps have been taken by our federal Government. But lets not stop at Liard Macmillan, lets go back to when Daniel Morris was chief and then Ann Baine, then you will actually see the pattern of massive mismanagement of funds. It will also become quite apparent that millions upon millions of dollars stolen by people entrusted to lead their people has gone unaccounted for, for decades. In fact criminal acts have been a everyday occurrence at this first nations and societies and development corporations tied to this band office are just as illegal and accountable for the Bands present position as anyone. Shame on all who participated in the demise of your own people for self gain and greed. Let's hope that not one but all participants are held to the full extent of the law as we all know this cannot go unaccounted for. With accountability comes healing for the victims of these crimes as well as a belief in fairness in our courts to be willing to convict people who have been proven to have broken the laws of our country.
Up 15 Down 2
yukon56 on Sep 5, 2014 at 1:54 pm
We, society, need an audit. I suspect "our" money (taxes) has been mismanaged. After all facts are known there needs to be action. I am tired as a taxpayer of being an "open wallet" to be abused with no consequences. They make Senators repay so why not FN if found to have made inappropriate moves with "our" money (taxes). Fraud is fraud.
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Yukoner 2 on Sep 4, 2014 at 8:30 am
Self government at its finest. Good Job, let's give them more money. They have not settled land clams why do they get a dime? They should have to pay it all back and get a real job. Pay taxes and you too can get pis#$% off when you watch all your hard earned taxes wasted.
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bobbybitman on Sep 3, 2014 at 7:50 pm
So, Morris and 'his' four councillors all continue to receive their paycheques for doing little or no work and for defying orders to produce audited statements. Great! That will sure give a message of what is expected of leadership. No different from other politicians around the country who can do nothing for one reason or another and still receive all their pay and benefits though. This is not unique to FN so-called leadership. (Think about senators, Alison Redford the premier, etc. - except she had the shame/decency to recognize she did not deserve her job and resigned at least.)
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Thomas Brewer on Sep 3, 2014 at 3:18 pm
Having 40 "non-essential" staff for a FN of that size speaks volumes about the fiscal mismanagement going on down there. Good luck to Ganhada, who are likely being paid directly by AA, not out of FN funds - which leads one to wonder if those who remain employed are still getting paid for not doing their jobs.....