Amanda Vaughan
Northern News Services
Published Monday, November 26, 2007

YELLOWKNIFE - The Dene Nation got together with the RCMP to provide elders and community members with an update on the status of residential school payments and prepare them for the potential risks involved with receiving large lump sums of money.

"We've never seen anything like this," said Dene National Chief Bill Erasmus in response to speculation about the effects of the payments.

Erasmus hosted a press conference, with the assistance of Sgt. Larry O'Brien from RCMP G division's media relations, on educating recipients of the common experience payment on safety and fraud prevention. They said most residential school survivors are elders and middle-aged adults, and some may be vulnerable to scams and con artists who know their communities are going to be flush with money very soon.

Erasmus said that about 300 people in the territory have received payments already, but there are many more to come.

He added 8,000 people from the NWT attended residential schools. With an average payment of $20,000 he estimates $160 million will be paid to NWT or one-time NWT residents.

"It's taking a little longer than anticipated," he said.

Service Canada has hired additional personnel who have been working lots of overtime to process the "overwhelming" 70,000 applications received from across the country.

O'Brien said all RCMP detachments had received a package to distribute in their communities regarding fraud, identity theft, online shopping and many more things that pose financial or personal risk. He likened the vulnerability of payment recipients to that of people who win lotteries.

"There are unscrupulous businesses who prey on people," he said.

The package, called "Ageless Wisdom," covers typical signs of scams and fraudulent offers, such as demanding cash payment, not wanting the "customer" to consult their family or friends before making a purchase, or offering large sums of money that require some sort of tax payment up front. There are additional pointers about giving out financial information on the Internet or over the phone.

"It also covers personal safety," O'Brien said, adding the package includes information abut being safe while walking around, and how to deter break and enters around the home. He also said there was emphasis on community members looking out for each other's safety.

Both Erasmus and O'Brien said they could not predict the effects of the payments on social problems such as drug and alcohol abuse, given the lack of precedent for such a mass payment.

"We can't look into the future and say there will be more (substance abuse)," Erasmus said.

But Erasmus said he didn't expect any major negative effects from the payments.

"Most people are responsible," he said.