Paul Bickford
Northern News Services
Monday, April 9, 2007

HAY RIVER - The federal government has stepped in to help straighten out the messy financial and political affairs of a small native band in Hay River.

The Department of Indian and Northern Affairs Canada (INAC) placed West Point First Nation under third-party management as of April 5.

Timeline: Nov. 13 'handful' of band members meet to oust sitting chief Karen Felker. Nov. 24 Emergency meeting called by Felker. Not enough band members attend to make a quorum. Jan. 26 Election called when annual meeting fails to resolve dispute. April 5. West Point First nation placed under third party management.

MacKay LLP, a Yellowknife accounting firm, has been appointed third-party management. Dan Bush, an accountant with the firm, will be the band administrator.

George Cleary, INAC's director of Indian and Inuit services in the NWT, said the band leadership has "essentially" been dismissed, since a condition emerging from third-party management is a new chief and council have to be elected.

A leadership dispute - including two competing chiefs - led to the financial problems.

Chief Karen Felker supports INAC's move, noting she requested third-party management in December out of concern for band finances.

The leadership dispute erupted in November, when most councillors ousted Felker and named an interim chief.

"I'm just glad the craziness has stopped," said Felker, who always claimed she was the legitimate chief.

As for her status as chief in light of INAC's move, Felker said she will seek clarification from the department.

However, she noted she has not resigned and still believes she is chief.

Abner Cayen, a rival chief acclaimed with a new council in early March, declined comment until he received more details from INAC.

However, Cayen said the band's leadership should be chosen by members. "They make the decisions."

Divisions in the 73-member First Nation are largely along family lines.

Cleary said Bush has full authority over band finances.

"Part of his job will be to get the band's finances under control," Cleary said.

A trust account will be set up. All funding for the band will go into the account to pay its bills and various expenses.

Cleary said the band office has been closed for about two months, and power and fuel bills need to be paid so it won't freeze up.

Since the financial woes began, Dehcho First Nations helped pay some bills.

Cleary said third-party management is not unusual across Canada, but this is only the second time in a decade it has happened in the NWT. The last time was in Aklavik.

Cleary said the arrangement is allowed under a comprehensive funding agreement with West Point.

To receive INAC funding, the band agreed to conditions, some of which can trigger third-party management, he explained. "The leadership dispute led to financial problems. That's the trigger."

Cleary said INAC wouldn't have intervened in a governance dispute that didn't affect band finances, noting public money is involved.

Beginning April 5, West Point members were notified by letter of the new arrangement.

The letter stated a closed meeting for band members will be held April 16 to explain why they are under third-party management, what it means, and how they can get out.

Cleary said the first step will be to get the books in order noting the band is in debt by an undetermined amount.

Members will be asked to help create a new election code, ratify it and hold elections for chief and council.

"Once they do all of that, they can come out of third-party management," Cleary said, noting the current election code was never ratified.

"It's up to the membership," he said.

"We're hoping that they'll work with us to get this issue wrestled to the ground and start fresh again as soon as possible."