A forensic investigation requested by the Alexander First Nation has discovered evidence officials took cash advances at casinos and used band money to pay for hundreds of thousands of dollars of unexplained credit card bills.
Eight band officials were investigated including former chief Herb Arcand.
Between 2013 and 2015, the first nation paid $3.8 million to these eight people.
That included salaries and business expenses. However, auditors did not receive any justification for $2.1 million of those payments.
While looking into former chief Arcand, auditors wrote, “Cash advances were taken totaling $113,653 of which $91,156 were advanced at casinos. Cash advances made up 83% of all Visa transaction.”
Auditors also found Herb Arcand’s credit card was used to book an all-inclusive vacation for Roxanne and Chris Arcand at a five-star Jamaican resort.
The audit found that tribal administrator Alphonse Arcand is responsible for the most unexplained payments. Over the three year span, auditors identified $637,920.66 of unexplained payments.
In 2013 alone, the first nation paid $350,000 onto Alphonse Arcand’s credit card. No Visa statements were provided to auditors.
About a third of those credit card payments were approved only by Alphonse Arcand himself.
Collectively, tens of thousands of dollars were paid to the eight people for what was described as “extra duties.”
Some members of the first nation say the numbers disturb them but they expected these results.
“We want to clean this mess up on this reserve,” said Ernie Bruno. “It’s been going on too long.”
Bruno and a group of other band members gathered Friday afternoon to talk about the audit. Some said they’ve been fighting for more financial transparency and accountability for years.
Bruno says he protested former chiefs and councils and even conducted a sit-in at the band office demanding change.
He and others in the group of concerned band members said they’re taking the audit results to the RCMP and will be filing a complaint in the federal court.
“I think it’s up to the men and the women and the adult men and women to make sure that our elders and children are looked after. That’s our responsibility,” said Loretta Burnstick.
Auditors cautioned that these financial irregularities do not necessarily mean anyone did something illegal.
They wrote, “We have relied upon the information provided to us by AFN (Alexander First Nation).”
That information is not always complete. Auditors wrote about the first nation’s record keeping saying, “We have examined the ‘file room’ in 2016 and noted financial records in extreme disarray.”
Auditors also noted they continue to try to get new information that could change their findings.
“We have not been able to discuss results with Alphonse Arcand despite several attempts. He has recently informed us he is now on a medical leave of absence. To date, we have not interviewed the eight individuals selected to examine. We reserve the right to update our analysis based on interviews.”
Global News attempted to contact some of the people investigated in the audit. We received no response to our requests.
A sitting band councillor Craig Yellowdirt said he had concerns with how the audit was conducted but he wouldn’t say more at the time.
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