Sahtu claim office under fire for alleged mismanagement of trust
Trustee owes beneficiaries millions, says lawyer who worked on Sahtu land claim deal
April Hudson
Northern News Services
Monday, February 6, 2017
SOMBA K'E/YELLOWKNIFE
The organization managing the Sahtu land claim is being accused of holding back millions of dollars from beneficiaries and abusing its power.
Walter Blondin, a Sahtu beneficiary currently living in Fort Simpson, is the driving force behind one of the Facebook pages, Sahtu Watchdog. - |
Richard Hardy, a Sahtu lawyer who worked on the land claim, went public last month with accusations that $25 million that should have been distributed to beneficiaries over the years has been held back.
The Sahtu Secretariat Incorporated (SSI) is the trustee for the Sahtu Trust, which was originally established in 1993.
The trust was set up as part of the Sahtu Dene and Metis Comprehensive Land Claim Agreement to nearly $117 million in capital transfer payments from the Government of Canada and royalty payments.
Since the trust was established, that amount has grown to just over $141 million.
The beneficiaries of that trust include seven land corporations, as well as 3,403 individual beneficiaries from the Sahtu region.
In an open letter to the trust's individual beneficiaries, dated Jan. 24, Hardy refers to clauses of the trust that require SSI to distribute all income earned each year to all of the beneficiaries.
"It appears that the trustee has failed to distribute all of the income every year," he stated.
"There is no reason for SSI to be hoarding your money when all of you could make very good use of these monies yourselves.
"It is almost as if we're back in the days of the Indian Agents deciding what's good for you."
Reached by phone on Jan. 27, Hardy said he started looking into the trust after hearing in the media that SSI loaned $5 million from a "rainy day fund" to the Sahtu's seven land corporations to purchase Ram Head Outfitters, which has since become Canol Outfitters.
However, when Hardy questioned SSI about the fund, chairperson Ethel Blondin-Andrew told him in a letter there was no such fund within the trust.
In that letter, SSI confirms "an excess of approximately $24 million" in the trust as of Dec. 31, 2015, which is the difference between the amount of transfer payments and the current amount in the trust.
When contacted by News/North about the allegations, SSI executive director David Little said the trustee would provide a written response.
That response, attributed to Blondin-Andrew, failed to address the issues raised by Hardy and the beneficiaries.
It only stated that no comments would be provided on the Canol Outfitters issue.
Although Hardy says he doesn't think board members are at fault, but rather their advisors, he said the board should be more transparent with its beneficiaries.
"I think the biggest failing of SSI in acting as the trustee is a complete lack of communication and provision of information to the beneficiaries," he said.
That could be addressed if the trust was transferred to an independent, non-political board, he said.
The board is comprised of a chairperson and seven directors - one from each of the Sahtu's seven land corporations. Directors include Raymond Tutcho, Clarence Campbell, Danny Yakeleya, Charles McNeely, Edwin Erutse, Joseph Kochon and Sherry Hodgson, according to SSI's website.
Calls by News/North to several Sahtu land corporations were not returned.
While Hardy says the board members likely weren't acting out of malevolence, not everyone is convinced.
The board's decisions have caused an uproar on Facebook, prompting the creation of pages devoted to investigating SSI's actions.
There have also been calls for a special assembly in the Sahtu to discuss the situation.
Raymond Yakeleya, a Sahtu beneficiary currently living in Edmonton, told News/North he thinks SSI's actions could warrant a criminal investigation.
Yakeleya said he has had no success getting information from SSI about the trust and is frustrated with the actions of the board.
Walter Blondin, a Sahtu beneficiary currently living in Fort Simpson, is the driving force behind one of the Facebook pages, Sahtu Watchdog.
Blondin says he speaks on behalf of the individual beneficiaries for the Sahtu Trust.
He points to a lack of accountability on the part of SSI.
"This lack of accountability has enabled beneficiaries to identify serious deficiencies (in the) actions of the leadership," he said.
"Instead, (SSI) is controlled by the politicians and is unable to answer serious questions."
Blondin is calling for beneficiaries to implement immediately a committee to oversee the board's actions as well as an advisory council to ensure the integrity of the committee.
