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Judge slams band council over firing
Says former chief 'left with very few options' in alleging band corruption

Daniel Campbell
Northern News Services
Published Friday, May 2, 2014

SOMBA K'E/YELLOWKNIFE
The Yellowknives Dene First Nation has been ordered to pay a year's salary and court costs to former Ndilo chief Ted Tsetta after the band council fired him for speaking out about alleged corruption within the band.

In a decision released Tuesday, the Federal Court of Canada ruled the First Nation was wrong to oust Tsetta.

The band council claimed the letter - addressed to the Prime Minister's Office and the Department of Aboriginal Affairs and Northern Development and signed by Tsetta - brought the reputation of the council into disrepute, which allowed them to suspend his term.

Tsetta was elected chief of Ndilo in June 2009 and had his pay cut on June 11, 2012, just days after he signed the letter. He was eventually replaced in October 2012.

Tsetta's term was set to expire June 15, 2013.

Judge Yves de Montigny didn't mince words in his decision, saying he failed to see how Tsetta's letter warranted his dismissal.

"Chief Tsetta's claims are not totally unsubstantiated and deserve at the very least to be investigated," de Montigny wrote.

The letter, signed by Tsetta and former councillor Nuni Sanspariel on June 5, 2012, said the government should be "seriously concerned about the abuse and corruption" to have allegedly taken place under the band council's watch after millions of dollars in diamonds went missing from its Det'on Cho Diamonds cutting and polishing operation.

The letter alleged finances gleaned from an impact benefit agreement with the Det'on Cho Corporation, which was involved in the diamond industry, were mishandled.

"There are no legal audited financial statements for all the unaccounted rough and cut diamonds that have gone missing, or sold ... without the proper written consent of the Yellowknives Dene First Nation chief and council," the letter said.

Dettah Chief Ed Sangris - the senior chief on the Yellowknives band council - said the band office is in the process of reviewing the decision with its lawyer. He said he expects to be able to comment on the allegations by next week.

Sgt. Marc Coloumbe, spokesperson for the RCMP in Yellowknife, said it received

a complaint about the mishandling of money by the band in 2011, but that the issue had been dealt with internally. He confirmed police are not investigating the issue.

Tsetta was left with "very few options" stated de Montigny.

"What was the chief to do? It would clearly have been preferable to have these matters openly debated and resolved within the confines of band council meetings, but that was apparently not an option due to internal infighting and conflict among band council members," wrote de Montigny.

The judge further stated that Tsetta was entitled to due process and procedural fairness, dismissing claims by the Yellowknives band that council acted in accordance with their election policy in firing Tsetta.

"He could not simply be removed from his position because he was stating opinions that were at odds with the rest of the band council or because he was calling for an investigation into alleged wrongdoings."

The court ordered the band's resolution against Tsetta quashed. It further ordered the First Nation to pay Tsetta "remuneration and other benefits" between June 11, 2012 and June 15, 2013, as well as legal costs.

Kristan McLeod, Tsetta's attorney, said her client will be seeking the amounts ordered by the courts, but couldn't specify how much that will be.

The next step, she said, is to finalize the amount owed to Tsetta and ensure he's paid.

NNSL photo/graphic

Timeline: An ousted chief

  • June 5, 2012: Tsetta signs letter alleging corruption within band council
  • June 11, 2012: Tsetta suspended, has pay cut by council
  • June 20, 2012: Tsetta assessed by doctor, deemed unable to work due to stress and tension
  • July 24, 2012: Aboriginal Affairs and Northern Development Canada states it will not investigate allegations, citing "insufficient documentation."
  • Oct. 5, 2012: Band council resolution imposes series of conditions if Tsetta is to return
  • Oct. 25, 2012: Roy Erasmus Sr. replaces Tsetta as acting chief of Ndilo, assumes salary
  • Oct. 16, 2012: Tsetta files case in Federal Court against Yellowknives band council
  • Aug. 12, 2013: Hearing date set after both sides acquire legal counsel, file affidavits
  • Dec. 17, 2013: Hearing held before Justice Yves de Montigny, lasts 3.5 hours
  • April 29, 2014: Federal Court files ruling quashing band council's decision, ordering Tsetta be compensated

Source: Federal Court of Canada

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