Take over Voisey's trust revenues, Innu man asks court

A Natuashish resident has filed a court application to find out why the Innu Nation has not yet created a trust fund to handle millions of dollars from the Voisey's Bay impact benefits agreement.

Labrador Innu are expected to receive at least $145 million over the life of the Voisey's Bay mine on Labrador's northern coast.

As part of the July 2002 agreement, funds would be paid into a trust in which the principal could accrue interest to be used for future generations. The trust has not yet been established.

Luke Rich, a resident of Natuashish who has been critical of Innu Nation leadership, has filed an application with Newfoundland Supreme Court asking for the court to take control of benefit revenues until a trust fund is formally in place.

"I don't want my grandkids coming up to me when I'm old 60 or 70 years old and say, 'Grandpa, did you know about this money?' " Rich told CBC News.

Delays in setting up the trust have already raised the concerns of lawyers acting for the Innu Nation.

This spring, CBC News obtained letters from the Toronto-based firm of Olthuis, Kleer, Townshend, which urged the Innu Nation to move quickly on setting up a trust.

By that point, about $6 million had been paid directly to band councils in the two Innu communities of Sheshatshiu and Natuashish, to be spent as local leadership saw fit.

Daniel Ashini, who was elected this fall as president of the Innu Nation, said the fund has been delayed for tax reasons, and also because Sheshatshiu is not yet a reserve.

Ashini said a chartered accountant has been hired to make sure that all funds are accounted for, and that there is no need for the Supreme Court to step in.

"I truly and fully believe that the Innu are capable and educated enough to handle [the] funding," Ashini said.

Rich's application names as respondents the Innu Nation as well as Voisey's Bay Nickel and its parent company, Inco Ltd. The respondents have not yet replied to the application.

Arguments are expected to be heard on the case on Nov. 24.

A February 2005 investigation by CBC News reported allegations all denied that the Natuashish band council leadership of the day was using council funds for shipments of illicit drugs and alcohol.

Voisey's Bay Nickel began shipping nickel concentrate late last year.