The question of where federal funding is going once it is sent to indigenous reserves, has arisen once again.
A controversy is brewing at the Alexander First Nation in Alberta where an outside financial forensic audit determined over $2 million went to ‘unexplained expenses” of eight band administrators. About half of the money in question went to a former band chief Herbert Arcand, and current tribal chief administrator Alphonse Arcand.
An auditing firm was called in by the band’s former interim financial officer after she discovered questionable activity with the band finances.
Between 2013-2015, former Chief Arcand received over $400,000 in unexplained payments on top of his $186,000 expected salary. Part of the unexplained expenses came from a band credit card issued to him which showed over $91,000 in charges at casinos. An all-inclusive vacation for two of his relatives at a five-star Jamaican resort was also charged to the Alexander band through his credit card.
Administrator Alphonse Arcand is said to have received well over $600,000 in unexplained payments on top of his $280,000 salary. The payments included over $16,000 in unexplained “extra duties” and payments to his credit card of almost $350,000.
The audit noted that the eight administrators each received bonuses averaging $17,000, and a total of over $41,000 in “financial assistance”. There was also $200,000 in expenses for meetings over a three year period.
Quoted by the CBC Herbert Arcand said, “They’re not giving anybody any type of opportunity to come forward” with documents which would paint another picture”.
In an email to CBC, Alphonse Arcand wrote, “The MNP (audit) report showing the payments to myself without specifically reporting my credit card being used for Nation business was incomplete and out of context and has caused significant distress to myself and the community”.
The auditing firm examined 70 boxes of documents of just over 36,000 pages, as well as 22.8 gigabytes of electronic information. But admit their investigation was “limited” as they did not interview the eight administrators in question, and were unable to speak with Alphonse Arcand despite several attempts.
In the most recent development, the computer server containing sensitive financial information was removed from the band office.
Current financial officer Loretta Burnstick said it was removed to protect the integrity of the files.
One of the band councillors says he has requested an urgent meeting with federal officials saying the situation is sensitive and are requesting a the financial audit continue and are asking the federal government to oversee and pay for it.
Wikipedia lists the population of the reserve(s) at 962, while the Aboriginal Multi-Media Society (AMMSA) in a 1998 article lists the population at 1,343 members with 742 on reserve.
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