Attawapiskat First Nation must repay $1.8 million, government says

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OTTAWA – The federal government is demanding the Attawapiskat First Nation pay back $1.8 million after an audit determined the band could not account for the money that was supposed to be spent on housing.

The audit was completed in April of this year, and was recently posted on a government website

It was a follow-up to a comprehensive audit that was ordered after Attawapiskat declared a state of emergency in November 2011, saying there was a housing crisis on the reserve.

At the time, Prime Minister Stephen Harper questioned why there was a crisis when government money has been flowing to the reserve.

“This government has spent some $90 million since coming to office just on Attawapiskat,” he told the House of Commons on Nov. 29, 2011. “That’s over $50,000 for every man, woman and child in the community.

“Obviously we’re not very happy that the results do not seem to have been achieved for that.”

The follow-up audit found that 54 per cent of the transactions under examination had either incomplete or no supporting documentation.
And Ottawa wants some of that money back.

The office of Aboriginal Affairs Minister Bernard Valcourt told Global News, “the department has determined that $1.8 million in unaccounted housing transactions from the First Nation must be repaid over the next five years.”

READ MORE: First Nation takes federal government to court over transparency law

In its reply to the auditor, Attawapiskat First Nation says: “We have significant concerns with the…amount of $1,842,260.

“The majority of the funds comprising this amount relate to two major contracts, each of which was completed and the full funds disbursed. While the documentation related to these transactions may be incomplete, no findings, documents or evidence suggests that the funds were not disbursed as stated.”

Global News contacted Attawapiskat band manager Wayne Turner, but he said he didn’t want to speak about the audit on Friday.

NDP aboriginal affairs critic Jean Crowder says the audit results are “deeply troubling”, but she wonders how the First Nation will repay the $1.8 million.

“Clearly you can’t continue to have funds not accounted for. But I’m not sure you can already take a band that’s probably, I would suggest, a number of their members are living below the poverty line and remove funding from them,” she said.

The audit also notes that Attawapiskat has been under co-management for more than a decade. This requires the band to hire an outside expert to help improve its financial systems.

But Crowder says the audit shows the co-management system clearly isn’t having the desired effect in Attawapiskat.


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Attawapiskat First Nation must repay $1.8 million, government says - National | Globalnews.ca