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THEBACHA/FORT SMITH - Documents on a recent judge's ruling revealed more than $1 million was paid to members of the Salt River First Nations council, its chief and their associates.

In the same ruling the court has named a receiver/manager to run Salt River First Nation (SRFN) in Fort Smith.

On May 6, the Federal Court of Canada appointed Browning Crocker Inc. - a financial services firm with head offices in Edmonton and a branch in Yellowknife - to exercise the powers of band council until the results are declared in a June 29 election for chief and three councillors.

The ruling followed a May 4 hearing in Vancouver.

Justice Yvon Pinard gave the receiver/manager a lengthy list of powers, including control of all band funds and the June 29 election.

Of particular interest is the release of specific dollar amounts paid out to Chief Frieda Martselos to cover legal costs when she was ousted as chief in 2007 as well as monies received by members of the November 2002 council.

In his ruling, Pinard noted SRFN has suffered from an "ongoing dispute" since 2002 when a rump group held an impromptu election, ousted the duly elected council and temporarily took over governance powers, including bank signing authority, through the so-called November council.

The justice noted, at that time, court orders were made to protect the band funds, but those orders were breached and several hundred thousand dollars were unlawfully taken. Some members of that group were found guilty of contempt of court and fined. Others were convicted of theft over $5,000 for stealing money from a band company.

Pinard noted that on Aug. 25, 2008, council passed a resolution to pay $1.188 million of band funds to members of, or persons associated with, the November 2002 council, and over $600,000 was paid to Chief Martselos.

The judge noted the two band councillors who opposed the payments - Mike Beaver and Chris Bird - were removed from office for doing so.

An April 20 byelection filled the vacancies, but Beaver and Bird were not eligible to run.

They can, however, run in the June 29 election.

The latest ruling resulted from a motion made during a now-abandoned application by Martselos and three councillors - Gloria Villebrun, Bradley Laviolette and Frederick Beaulieu - to prevent the June 29 election for their seats.

The new vote was ordered by an arbitrator who ruled on March 30 that last year's election for chief and councillors suffered from infractions that materially affected the outcome.

The arbitration was initiated by David Poitras, an unsuccessful candidate for chief last year, Toni Heron and Raymond Beaver, who both ran for council.

They were also the respondents in the defunct application to halt the June 29 election.

Pinard agreed with their argument that there has been a "gap in governance" of the band following the arbitrator's decision, since the chief and three councillors ceased to be duly elected officials upon its release.

That left one legitimately elected councillor. Two more were elected in an April 20 byelection. The total of three is short of the four needed for a quorum to conduct band business.

The band normally has one chief and six councillors.

"In my view, it is only just and convenient, in the circumstances, to appoint a receiver/manager, in order to avoid irreparable harm," Pinard wrote in his ruling.

Lawyers for Martselos and the three councillors had argued the band's customary election regulations contain no provision granting anyone, including an arbitrator, the power to determine an election is invalid and that it is SRFN custom that there always be a council in place to provide leadership.

Pinard found the arguments of the lawyer for Poitras et al to be "more defensible."

Poitras, who plans to run again for chief in June, was pleased with the ruling.

"I figured it would go that way because of the whole process," he said, adding the arbitrator found Martselos had run a dishonest election.

Poitras said the judge's decision also clarified that Martselos and the three councillors were not legitimately part of council since March 30.

Poitras said Martselos and the three councillors incorrectly continued in their roles until last week's court ruling.

Martselos could not be reached for comment.

She previously told News/North she intends to run in the June 29 election.

Justice Pinard encouraged the receiver/manager to consult with the three remaining duly-elected councillors - Delphine Beaulieu, Ron Schaefer and Kendra Burke.