Ruminations

Blog dedicated primarily to randomly selected news items; comments reflecting personal perceptions

Saturday, September 16, 2017

Favouritism, Cronyism, Nepotism, Racketeering

"None of the budgets noted indicate a cost of $500,000. We are unaware of how between March 22, 2016 and April 29, 2016, the budget grew from $260,000 to $500,000."
"We understand the police have been notified of the alleged theft and are investigating."
"No other individuals, council members or otherwise, were copied on the email [arranging the funds] to the bank."
"No other council members approved he bank draft."
"We recommend a formal legal opinion be obtained with regards to whether a conflict of interest existed between Chief Hillier and the contact with Moccasin Media and its proprietor David Hillier."
"We are unable to confirm the amounts paid ..." We are unable to determine whether any cash may have been misappropriated."
"[Band] members sought financial information ... We understand no information was initially shared with the members."
Matson Discoll & Damico Ltd. audit of Caldwell First Nation powwow
Caldwell First Nation
Members of the Caldwell First Nation in Leamington, Ont. are shocked by a forensic audit that shows there were "minimal controls" over more than $240,000 in prize money for a powwow last year. (Caldwell First Nation website)

The suggestion that funds may have been stolen from a small band council arranging a celebratory powwow for its 368-member group in southern Ontario certainly looks, on the evidence of the audit, that it has great merit. Chief Louise Hillier, it seems, was in a conflict of interest given that she chose to award an untendered contact to the value of $290,000 to make a video of the powwow.

On the strength of the audit's findings Chief Hillier has been temporarily suspended as has the entire council itself after a motion from one of the councillors. Unusually large cash prizes represented another puzzling decision to reward contests in singing, dancing and drumming, to a total of $280,000 unsupported by receipts.

All to celebrate the conclusion of the band's land claim in 2010, when the Province of Ontario settled with the band for the historical claim when, 200 years earlier, settlers took their traditional lands at Point Pelee. The band has no designated geographic reserve, but with its settlement funds it has plans for the development of an urban reserve to be located in Leamington, Ontario.

Last summer's powwow was the celebration of a "repatriation ceremony", named Rejuvenation of the Spirit. The 129-page audit appears to have taken all the airy puffery out of that rejuvenated spirit; of the million-plus settlement, fully half was scattered to the winds, and almost half of that ended up in the flush bank account of the chief's son for his Moccasin Media company.

There was a complete lack of financial control in the council, no drawing up of an official budget, merely a draft resolution expressing the band's intention of launching the celebration; a follow-up resolution had no financial value connected to it; nothing specific whatever, though an audio recording of the council meeting had councillors discussing a budget of $260,000.

A bank investigation revealed that 99 $50 bills were missing; whoof! poof! gone! There was a convention however, stating a councillor "cannot sign his/her own cheque and cannot sign a cheque for immediate family ...", but still the chief's son's video company was awarded a contract just shy of $200,000 when the band had been discussing contracts not to exceed $20,000.

Local media reported up to 6,000 people attending the powwow, with ticket sales at $5 each entrance at the gate, and when the gate revenues were totted up it seems that only 1,123 entrants may have paid the fee -- or the fees just kind of disappeared. Souvenir revenues came to a whopping $2,596, accounting for memorabilia for the powwow that the band had spent $17,197 on acquiring.

Attendees loved the cash prizes, with young competitors, six to 12 years of age awarded $400 in first place, $150 for coming in fifth. The awards were doubled for the older girls and boys, and the adult competitors received $1,600 for winning first and $800 for finishing fifth. If there were any losers, they were the forgettable concepts of straight-shooting and honesty.

The former federal Conservative government had instituted a regulation whereby band councils were expected to post all revenues and expenditures for public viewing, rather than do as they wished with the tax-funded monies annually received to fund reserve operations. One of the first things the new Liberal government did was to waive that requirement.

The reserves that are well-run by honourable councils who care deeply about the welfare of their members, saw no need to waive an assurance they complied with; those administered by First Nations elites who saw nothing untoward in cheating their people doubtless celebrated wildly.

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