The RCMP are investigating concerns of the Liard First Nation about $250,000 that disappeared from its coffers.

In a news release, the Watson Lake RCMP said they are investigating the first nation's concerns over unpaid personal loans.

'A review of all the circumstances surrounding this matter is presently being conducted. No further information will be released in this regard until the review has been completed,' the release said.

The RCMP's statement refers to concerns raised recently by a news release from Chief Liard McMillan and the first nation's council.

That release notes that until December 2003, the Liard First Nation had an internal policy of giving out personal loans and salary advances to employees. The loans and advances were to be repaid.

By the end of the 2002-03 fiscal year, the total value of loans was at $144,000. When the policy was changed last December, there was a total of $250,000 in unpaid loans still owed to the first nation.

The news release states the first nation has created a policy of garnisheeing the wages of its current employees who owe on these loans.

As for those who no longer work for the first nation, it will establish a policy of repayment within three months.

According to the release, the biggest debtor owes the first nation $147,000.

The first nation said it will co-operate with the RCMP in its actions on this matter.

The decision to stop handing out the loans came around the time McMillan was elected as the new chief to replace the disgraced Daniel Morris.

Morris was forced out of office after pleading guilty to charges of uttering threats, pointing a gun, forcible confinement and assault.

Morris no longer works for the first nation.

During his visit to the Yukon on Tuesday, new Indian Affairs Minister Andy Mitchell was asked about the situation the Liard First Nation is facing.

'I have been made aware of that. I understand that the chief has been quite straightforward and has been dealing with it in a very transparent and public way. And I think that's totally appropriate,' Mitchell told a news conference.

'I think that the chief has indicated publicly about the need to put in place (an) additional financial regime in that community. I think that's appropriate.

'Obviously, there was an identification of some problems there,' Mitchell said, referring to the loans.

'We stand prepared to assist them if we can on the specific issue but also on the broader issues,' said Mitchell.