TORONTO-Members of the Chippewas of Rama First Nation, home to a lucrative casino, are calling for a forensic audit or RCMP probe after learning their community faces a cash crunch. In an open letter obtained by The Canadian Press - titled "Where did all the money go?" - they say they do not understand what happened to millions of dollars in casino revenues. "This reserve is in trouble," the letter signed by "Worried Band Members" states. "How is this possible?" In a 20-minute speech two weeks ago, Chief Sharon Stinson Henry stunned a community forum when she said the 1,500-member band was feeling the global economic downturn. All band employees would forgo cost-of-living raises, see vacation time capped, and sick time slashed, Stinson Henry said. She also announced a buyout plan in which employees could resign in exchange for three weeks of pay per year of service. "It was just silence," band member Jennifer Jewell said of the reaction at the forum. "There was no chance to ask questions in front of everybody. I think there was a fear that the meeting could have got out of hand with people getting upset." In a leaflet, the band administration explained it had to "significantly" reduce spending, and that layoffs might be necessary if cost cutting fell short. In an interview Wednesday, Stinson Henry rejected suggestions of a fiscal crisis, saying the community was "in great shape." The six-term refused to discuss budget figures but said a pending decline in casino revenues has prompted "a good hard look" at the fiscal future. "We want to operate on a balanced budget," the six-term chief said. "That's just exactly what we're doing." She would not say how many of the 400 band employees had applied for a buyout nor how many council was hoping to grant in an effort to trim the band's estimated $24-million payroll. Feedback to the proposed measures was "very positive," she added. Over the past 15 years, the casino has raked in about $5.5 billion in gross revenues and profits of a $1.5 billion, with a sizable part of net revenues going to the band. "Since the casino opened in 1996, it has generated hundreds of millions of dollars for our community," the open letter states. "Yet now we have nothing to show for it." The letter questions whether fraudulent activity had occurred. Jewell, who works occasionally in reserve stores, said she supported the call for a forensic probe. "They mismanaged our funds and they're blaming it on the economy," she said. Stinson Henry said the financial statements were audited annually and available to band members. Some Rama members said they were afraid to speak out for fear of being ostracized but Cheryle Snache, who manages the reserve food bank, blamed the financial crunch in part on failed business ventures. She also criticized general salaries and perks along with severance packages for council members. "It just been mismanagement of funds, band investments, all these high-paying wages," Snache said. The chief did announce that she and the six council members, who each make more than $100,000, would take a 10 per cent pay cut as part of the austerity drive. In 2008, the Ontario government looked into about $3 million in payments Casino Rama had made to a First Nation that did not officially exist. In addition, millions that were meant to help lift First Nations out of poverty went to legal fees and other expenses.
THE CANADIAN PRESS.
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Just for the record, I was not involved in the letter signed by "Worried Band Members". I did get a call from The Canadian Press and was asked for my opinion, which I gave. Cheryle Snache.
ReplyDeleteCall goes out for audit of band books
ReplyDeleteMore than 50 residents are challenging a series of U.S. business deals in which the band spent $670,000 with no return on investment
By SHAWN JEFFORDS QMI AGENCY
Last Updated: November 25, 2010 11:13am
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WALPOLE ISLAND — A crowd of island residents gathered here Tuesday night to demand a forensic audit of band finances.
“We know that there are outside forces that simply want us to go away,” said Michel Sands, the first band member to publicly question council’s investment in an electric car/biofuels venture. “Tonight, we’re here to tell you that we won’t be going away anytime soon.”
More than 50 residents came to the Walpole Island Sports Complex to hear Sands present information on a series of U.S. business deals in which the band spent $670,000 with no return on investment. Council has not responded to Sand’s request.
“I also want to make it very clear that we hold no ill will (against) our elected officials,” she said. “We only want them to be held accountable for their actions.”
Community anger has grown in recent months over a series of ventures either completed or in the discussion stage, including an island wind farm, a $4.5-million wireless Internet system, even $25,000 invested in a now mothballed “healing chair.”
Walpole is one of 134 Ontario First Nations that share gaming revenue from Casino Rama, which opened on the Rama First Nation near Orillia in 1996. The investments have been funded using cash from that agreement.
More than 200 residents have signed a petition calling on Chief Joseph Gilbert and band council to hire an accounting firm to do the forensic audit. Sands said it would cost $50,000 and take up to three months to complete.
“Our reasoning for requesting a forensic audit is to tell us exactly where and how our dollars have been spent, nothing more,” she said. “A regular audit won’t do this.”
Sands told the crowd she was reluctant to turn to the media and outside investigators to look into the matter. But she changed her mind when council ignored her questions, she said. But calls to the FBI, RCMP and OPP have not amounted to anything, she said.
“Everyone is trying to shove it off on to the next person,” she said. “No one wants to be part of First Nation’s politics right now, we get it.”
Walpole resident Cindy Soney told the crowd she was “furious” about the money lost on the U.S. investments.
“Think about what all that money could have done for the community,” she said. “We should be pissed.”
Resident Bill Sands (no relation to Michel Sands) urged the assembled community members to demand answers from their chief and council.
“We’ve been kept completely in the dark here,” he said.
Neither Chief Gilbert nor members of the band council were present at the meeting. When contacted by The Observer, Gilbert said he did not know what was said at the meeting and would not comment.
Sarnia Observer