Stoney Nakoda First Nation administrators are warning of layoffs and slashed services if a band chief continues refusing to sign documents that would allow millions of federal dollars to flow into the tribe’s coffers.
Indian and Northern Affairs Canada is “closely monitoring,” the situation on the reserve west of Calgary and is ready to step in if the situation deteriorates, a spokesman said Monday.
According to Stoney Nakoda tribal administration, $38 million in federal cash is at risk because Chief Ernest Wesley, four Wesley councillors and a Bearspaw councillor won’t sign operational documents for the fiscal year, which begins April 1. All three chiefs and councils of the three bands that make up the Stoney Nation are required to sign off on the agreements. The First Nation may be forced into third party management if the stalemate continues, said Greg Varricchio, the CEO of the Stoney tribal administration.
Wesley, who has called a community meeting in Morley today to explain his actions to band members, said he won’t sign the papers until he has answers on “financial irregularities” in the budget.
“When it comes to budget, we’ve found some irregularities we’re looking for answers for,” Wesley said.
Hopeton Loudon, CEO of the Wesley band, said the concerns revolve around policies regarding contracts, conflict of interest, and signing authority for cheques.
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Varricchio, however, said the allegations of irregularities are “flat out not true,” and that he’s provided to Wesley the requested financial information.
“Everything I’ve done is in accordance with the chiefs’ direction,” he said.
The federal funding agreements involve $23 million for essential services such as education and income support, and about $15 million previously approved for the First Nations five-year financial sustainability plan, Varricchio said, that are being held back because the Wesley chief and council haven’t signed off on them.
According to a statement on the Stoney website, “These actions have negatively affected the members of their own nations as well the greater Stoney community.
“As a direct result of the conduct . . . nation members may not be able to access the money or services required and nation members’ jobs and livelihoods are being put at risk.”
Varricchio said he’s begun some “proactive” work with a third-party accountant because of the financial impasse.
A new quorum band council resolution was passed at a March 8 meeting allowing the documents be approved without the Wesley chief and council signatures, he said.
“Our belief is that INAC (Indian and Northern Affairs Canada) has all then necessary signatures together with the new quorum BCR (band council resolution) that provide the authority for INAC to act on and fund the agreement.”
Indian Affairs spokesman Glenn Luff said the federal government would step in with a co-manager only if there’s “clear evidence that the services that we fund the First Nation for are not being delivered,” he said. “There’s no indication to us at this point that those services are not being delivered.
“We’re monitoring it closely.” Last year, the tribe unveiled a fiveyear financial sustainability plan that showed “drastically reduced” oil and gas revenues.
The federal government funds nearly 50 per cent of the Stoney’s $100-million budget, said Varricchio.
“Chief Wesley and the council underestimate the importance of the financial sustainability to the Stoney Nation as a whole,” he said.
Some of the questions raised by the Wesley chief and council relate to decisions made before they were elected in December 2010, Varricchio said. All financial decisions have been documented, he said.
Loudon said he hopes the matter can be sorted by having a third-party manager step in.
Loudon said the Wesley elected officials simply want answers and aren’t trying to put funding in jeopardy.
“To not deal with these matters and to say, let’s go ahead and continue with the same old, same old without any answers to these outstanding issues and any explanation, is foolhardy.”
jkomarnicki@calgaryherald.com
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