Receipts for missing funds were stolen: Natuashish chief

The chief of the band council in Natuashish is dismissing another auditors' report that has raised flags about how funds in the Labrador community are being used.

Chief Simon Pokue says thieves not poor financial management are the reason whydocumentation cannot be found to explain whyroughly $560,000 cannot be accounted for.

Auditors found there were no records to explain how the funds were spent, including about $200,000 that the council says was spent on travel.

Pokue insists records for all the spending did exist, but were part of materials stolen during a February break-in at the band council's office.

"Some of our documents and some other financial stuff are missing. The police [looked] into it, and the people that were involved are charged," said Pokue, whowould not comment further on the theft because it is before the courts.

"Everything is documented. All the money has been documented, where the money goes and how it's spent," said Pokue. "The council has nothing to hide here."

The audit, obtained by Natuashish resident Prote Poker through the federal Access to Information Act, is the latest in a series of reports that raise questions about how the Natuashish band council manages its discretionary funds, including revenues streaming from Voisey's Bay Nickel Co.

Poker said the audit underscores serious problems in the community.

"There is no accountability in the band council.They never have any public meetings to let [residents] know how they spend their money," Poker said.

Previous audits turned up problems

A 2004 audit showed a host of problems, including very little accounting of how $3 million in discretionary band funds was spent.

Among other things, that audit found that blank cheques were taken from the band council office when councillors travelled.

A follow-up review in 2005 showed that some problems had improved while others worsened, including a habit of band councillors giving themselves advances "with little or no attempts at collection."

The federal Indian and Northern Affairs department will not be investigating the missing funds.

'When it comes to the government of Canada's funding, they are responsible to us and we've assured that from our perspective.' -Stephen Dunne

Stephen Dunne, a senior adviser in the department, said that's because all federal funds have been accounted for.

"When it comes to band-owned resources, the responsibility is of council and they are accountable to the membership for their own activities," Dunne told CBC News.

"When it comes to the government of Canada's funding, they are responsible to us and we've assured that from our perspective."

Even though Poker said he was not able to obtain the most recent audit from the band council, Pokue said anyone can pick up a copy at the band council office.

Meanwhile, another Natuashish resident, Luke Rich, has filed an application with the Newfoundland Supreme Court, asking the court to take temporary control of revenues from the Voisey's Bay impact benefits agreement.

A trust fund to manage the funds has not yet been established, in part for taxation reasons.