Federal government investigates complaint about misuse of funds intended to support children at Shamattawa

A federal government investigation is underway into concerns that Jordan's Principle funding meant to help provide services to First Nations children is not being spent properly at a First Nation in Manitoba.

A complaint was filed by a former employee of the Jordan's Principle program at Shamattawa, in northeastern Manitoba.

Janet Pitzel says she resigned from her job as a case manager last November over concerns about how the Jordan's Principle money was being spent at Shamattawa, and over fears that children and families were not getting the services they need.

"I'm upset and I'm angry about it. It shouldn't happen," Pitzel said in an interview with CBC News. "The funds are there."

Her written complaint alleges some Jordan's Principle funds may have been spent for personal use.

"Shamattawa citizens have been set up for failure due to the misuse of Jordan's Principle federal funds and the wrongful dismissal of employees over safety concerns and questions regarding funding misuse," it says.

Jordan's Principle is a policy to ensure all First Nations children in Canada can access products, services and supports to help with a wide range of health, social and educational needs.

It's named after five-year-old Jordan River Anderson, from Norway House Cree Nation in Manitoba, who died in hospital in 2005 while the provincial and federal governments were in a dispute over who would pay for his health care at home for his multiple disabilities.

In the fiscal year ending March 2023, federal spending for individual and group requests under Jordan's Principle was about $945 million across Canada.

Pitzel's complaint says there were gaps in services to Shamattawa people, creating hardship in the community and negative effects on children and families.

"I don't think they're going to be getting the services they should be," Pitzel told CBC.

"Their basic needs aren't being met," she said. "It's sad. It shouldn't happen in this day and age, and there shouldn't be people taking advantage of a program, especially for children."

The federal department that funds Jordan's Principle services confirms it's investigating.

"Indigenous Services Canada is aware of an allegation brought forward regarding the Shamattawa First Nation," said Jennifer Cooper, a spokesperson for Indigenous Services Canada (ISC), in an email to CBC News.

The department's assessment and investigation services branch is assessing the allegations, she said.

"The department takes allegations and complaints regarding the misuse of public funds very seriously. To that end, the department has put a process in place to ensure these allegations and complaints are examined properly and that appropriate action is taken," Cooper wrote.

Due to privacy concerns, ISC won't comment on allegations, other than to confirm a complaint was received, she said.

Shamattawa Chief Jordna Hill recently met with ISC staff.

"Everything went well. Everything was explained," he said.

"The outcome was okay. We explained the situation and what the demands were."

His description of Jordan's Principle services at Shamattawa differs from what was described in Pitzel's complaint. Hill denied that people were not getting the services they needed.

"I don't think there was any really negative things," Hill said. "Everything [in the complaint] is just false."

He also denied there was wrongful dismissal of employees. He said the First Nation had a contract with a private company that recruited and contracted the Jordan's Principle staff.

Hill also denied the allegation that federal funds meant for Jordan's Principle were being improperly used for personal purposes.

"There is no personal use," Hill said. "Everything is recorded through the band manager and finance."

He said he doesn't know when the federal investigation will be finished.

"I don't think it's going to go any further."

There are 11 people now working for the Jordan's Principle program at Shamattawa, he said.

"I think Jordan's Principle is a good program. It helps the families and the children," Hill said.

Pitzel is a registered psychiatric nurse who spent decades working at a Winnipeg hospital, including many years working in child and adolescent psychiatry. She worked as a case manager for Jordan's Principle in Shamattawa for about six months in 2023 after being recruited by a company in Winnipeg for the job.

Although she resigned from her position last November, Pitzel says other Jordan's Principle staff at Shamattawa have had their contracts terminated.

Staff turnover has contributed to the problems with service delivery, prompting complaints from members of the community about "large gaps in service," she said.

"I was appalled," she said. "And then I would say I go from sad to angry about the whole situation."

Shamattawa is a remote community in northeastern Manitoba connected to the rest of the province by its airport or by winter and ice roads.

Darryle Schweder, a member of Shamattawa First Nation who works in its administration services, serves as a liaison with the Jordan's Principle staff.

He says Pitzel's complaint contains false information.

"For the record, nobody was dismissed, fired, or are removed by chief and council or myself. And for myself, I don't have authority to fire or make decisions within the Jordan's Principle program," he told CBC.

He said it can be hard to retain staff due to difficult conditions at Shamattawa.

"There has been challenges," he said, adding the isolation of the community has made it difficult to recruit and retain staff. "It's a factor that we can't, you know, we have no control of."

When Pitzel left her job, Schwederwas "sad to see Janet go, because of her passion and love for the work that they were doing," he said.

"We were hoping that she would stay and provide the services and continue their work that they started," he said.

"They were doing a great job and I was hoping that they would be there long term," he said.

"We will continue to have these problems because of the challenges that we face in the community."

The complaint alleging Jordan's Principle funds were misusedand used for personal purposesisalso false, he said.

Federal government investigates complaint about misuse of funds intended to support children at Shamattawa

7 months ago

Duration 2:35

A federal government investigation is underway into concerns that Jordans Principle funding meant to help provide services to First Nations children is not being spent properly at a First Nation in Manitoba.