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Salt River - A court has ordered a receiver take over management of the Salt River First Nation until a new chief and council is elected on June 29, 2009.

According to a recent court decision, Chief Frieda Martselos will have to hand over the leadership of the Salt River First Nation to a reciever until a new band election takes place. - NNSL file photo

Ruled in a B.C. federal court the decision is yet another installment of the political controversy that has embroiled the band since 2002.

Last month, legal battles peaked when Arbitrator Kate Hurlburt ruled that a new election be called to elect a new chief and three councillors.

That decisions came at nearly the same time as results of a byelection were released to replace councillors Mike Beaver and Chris Bird who were voted off of council in 2008. The pair were ousted by a vote of council when they opposed and made public band council resolutions authorizing "the payment of more than $1 million "of band funds to members of, or persons association with the November 2002 council," the B.C. judgment reads. Of those funds more than 600,000 was paid to Chief Frieda Martselos.

Following Hurlburt's decision that a new election be called Martselos said she would appeal the decision. However, last week announced she would not proceed that appeal. At the same time Beaver had issued a statement wondering why Indian and Northern Affairs Canada had not appointed a manager to oversee band affairs until a new chief and council were selected.

David Rolf, a lawyer representing Martselos, said he interpreted the law to say that Martselos and council would remain in power until a new council was election. The other view creates a situation that's "absurd," he said.

The B.C. court disagreed and Browning Crocker Inc. has been appointed as a receiver and will take over management of the band until the election.

A copy of the court's judgment is available here.