Deninu Kue band members demand full financial audit
New legislation could provide answers
Kassina Ryder
Northern News Services
Monday, February 6, 2017
DENINU KU'E/FORT RESOLUTION
A piece of federal legislation that comes into law in June could help reveal some of the payments mining companies make to aboriginal governments - which could help residents of Deninu Kue First Nation get answers to their questions.
Louis Balsillie: Refuses to answer questions on band finances. - |
The Extractive Sector Transparency Measures Act requires mining, and oil and gas companies to report payments, such as royalties, bonuses and fees, made to governments - including aboriginal governments, according to Natural Resources Canada. The legislation came into effect in 2014, but won't apply to aboriginal governments until June, 2017.
But the act doesn't force companies to reveal all payments made through Impact Benefit Agreements (IBAs) with aboriginal governments. That means portions of those agreements could remain secret.
"Extractive companies are not required to disclose impact and benefit agreements (IBA)," information from NRCAN stated. "The Act requires extractive companies to report certain types of payments of $100,000 or more made in relation to the commercial development of oil, gas or minerals. Some of these reportable payments might be included in IBAs."
The legislation also won't cover payments made prior to June, 2017.
The issue of IBAs between mines and aboriginal governments has been an ongoing issue with the Deninu Kue First Nation, said elder Leonard Beaulieu.
Beaulieu and other residents have been calling on Chief Louis Balsillie and council to publicly disclose the band's finances.
"We want a forensic audit done on the books for both the band and the development corporation right from 2007 until today," he said. "We want to see what's happening with the books."
The First Nation signed an IBA with De Beers in 2014.
Beaulieu said the details of that IBA, including exactly how much the First Nation receives from the company and how it is being spent, is not being openly shared with membership.
"The money comes from the mines to Deninu Kue First Nation, it's not addressed to Louis Balsillie," Beaulieu said. "We want to see what it's spent on, where it's going, what's left of it."
It's not the first time members have demanded an audit.
Balsillie did not respond to an interview request for this story, but told News/North in a recent interview that the band sends financial audits to INAC ever year.
During that interview, he refused to provide any information regarding a schedule of upcoming public band and council meetings.
"You don't have a right to anything in my community," he said. "You want to print something good about my band, then talk to me. What you're trying to do is bring me down to their level."
In April 2016, Beaulieu and others sent a petition to the federal Department of Indigenous and Northern Affairs.
In an e-mail to News/North, Valerie Hache, a media relations person with the department, said the federal government would not investigate band member's complaints.
"Indigenous and Northern Affairs Canada received allegations regarding the Deninu Kue First Nation in April 2016. An initial investigation was conducted by INAC's Assessment and Investigation Services Branch and concluded that the department did not have the jurisdiction to intervene in internal governance disputes and the possible mismanagement of band funds," the e-mail stated.
"In May 2016, the complainant was advised verbally of this finding and encouraged to contact the RCMP with any evidence of financial misconduct. Further questions should be addressed to the first nation directly."
News/North contacted G Division RCMP and a spokesperson responded via e-mail.
"The RCMP respond to and investigate Criminal Code and other Federal and Territorial statues," the email stated. "If sufficient evidence exists to charge an individual, we do so. If community members have concerns with their first nation organization, (it's suggested) they reach out to the agency that oversees them."
About eight years ago, Aboriginal Affairs and Northern Development Canada (now INAC), began overseeing the band's finances due to debt. The federal government co-managed the band for three years until 2012.
At the time, Balsillie told News/North the band had been between $700,000 and $800,000 in debt when the federal government stepped in, but that it had been reduced to about $150,000 by 2012.
The band's consolidated financial statements for 2014 and 2015 are on INAC's website through the First Nations Financial Transparency Act. Statements for 2016 have not yet been posted.
