Feds won't investigate Yellowknives band
Community members call for inquiry after judge says corruption allegations should be investigated
Daniel Campbell
Northern News Services
Published Friday, May 9, 2014
SOMBA K'E/YELLOWKNIFE
The federal government is refusing to look into claims of corruption within the Yellowknives Dene First Nation despite a scathing verdict from a Federal Court judge last week urging an investigation.
A spokesperson with the Department of Aboriginal Affairs and Northern Development Canada (AANDC) provided a statement by e-mail Tuesday reiterating - as it did in 2012 - that the Yellowknives would have to deal with the matter internally.
In 2012, Ted Tsetta, who was chief of Ndilo at the time, signed a letter to the Prime Minister's Office and aboriginal affairs department alleging corruption and financial mismanagement of the band's money, specifically, monies gleaned from impact benefit agreements with mining companies.
In the months following the letter, Tsetta was attacked for his views and removed as chief. He took his case to the Federal Court of Canada, where a judge ruled the band was wrong to oust him. In his ruling, Judge Yves de Montigny said Tsetta's claims were "not totally unsubstantiated and deserve at the very least to be investigated."
In court documents obtained by Yellowknifer, Roy Erasmus Sr. - who was named acting chief after Tsetta was removed - testified that around $500,000 worth of diamonds were unaccounted for, following a preliminary report into the Det'on Cho Corporation - the band's corporate arm.
"People were saying there's $10 million dollars worth of diamonds missing, so (the report) looked at that and it said, if I recall, there was maybe a discrepancy of half a million dollars worth of diamonds," Erasmus Sr. said during cross-examination in January 2013.
But despite the $500,000 discrepancy, which only looked into the diamond side of the corporation, rather than the entire business, Erasmus Sr. was not convinced of any wrongdoing.
"There was no - nothing conclusive. It was a lot of supposition," he testified.
In Tsetta's cross-examination in November 2012, he said there could be millions of dollars of funds from impact benefit agreements that aren't accounted for.
An AANDC official testified the department can only audit accounts and records of a First Nation with regard to the funding it receives from the government.
"Questions with respect to the band's private development corporations should be addressed to the First Nation," the statement read.
Ed Sangris, Dettah chief and senior chief with the Yellowknives, did not respond to requests for comment by press time.
In April 2011, band council passed a motion approving spending up to $100,000 to review the Det'on Cho Corporation. The preliminary report, alleging $500,000 missing just from the diamond arm of the corporation, seems to be as far as the band got.
Barbara Powless-Labelle, a band member, former councillor and outspoken critic of the current council, said ever since the Federal Court decision, people have been wondering what's going to happen to the band.
"Is the federal government going to step in now? We need to have answers. The (band council) still isn't talking," said Powless-Labelle.
"We need to do a full cleanup of that First Nation."
Powless-Labelle, who drafted the 2012 letter which got Tsetta into hot water with council after he signed it, said with all the money from impact benefit agreements, all band members could be rich by now.
She said from her experience on council, the band did not keep proper records of the money it received from impact benefit agreements. She says, so far, that money seems to be getting spent on legal fees for cases such as Tsetta's.
In 2006, Powless-Labelle brought up concerns about band funds. In response, the band banished her from the community and discredited her, she says.
She brought the band to court, where they settled for an undisclosed amount, which Powless-Labelle said barely covered her legal costs.
"To me, it was about the principle," said Powless-Labelle.
Henry Beaulieu, a member of the band, said he's asked to look at Yellowknives Dene internal audits before, but has been refused.
"As it is right now, everything in the First Nation financial budget is in-camera. We don't know what they're really doing or how they're spending the money," said Beaulieu.
Bob Turner, another band member, said he wants Tsetta reinstated as chief and for the current council to call a new election.
"It seems like something is being hidden," said Turner. "Hopefully in the future, the chief and council will take direction from the community. Now, they're not."
Powless-Labelle said she wants someone, even the Prime Minister's Office, to step in and hold the council accountable.
"If the First Nation finds there won't be any repercussions, they might not do anything," she said.
