Release Shubenacadie audit now: ex-councillor
'Alleged, suspected or actual fraud' at First Nation
A former Shubenacadie band councillor says the latest financial details about the troubled Nova Scotia First Nation should be released right away in light of a previous audit that uncovered fraud.
Alex McDonald wants the report made public before the next band election on Nov. 1.
"People have to be concerned. They have to ask questions about it," he told CBC News.
McDonald lost his seat last week when the band council was dissolved over voting discrepancies.
An investigation by the Department of Indian and Northern Affairs uncovered fraudulent practices in the June 2009 band election, including four falsified ballot declaration forms.
McDonald said a 2008-09 audit of the band's finances is also troubling.
The audit, obtained by CBC News, was conducted by the accounting firm WBLI. Auditors determined that a number of documents were missing, including bank statements and sales records.
In one case, a cheque for $12,500 was never deposited, though it was endorsed by former band chief Jerry F. Sack.
- 2,206 registered band members.
- Includes 4 settlements: Indian Brook, Pennal, Shubenacadie, New Ross.
- Indian Brook is 2nd-largest First Nation in N.S.
McDonald said he was unable to get an explanation. "You bring it up, it just drops," he said. "Nobody wants to talk about it."
The audit also cites cases where former band employees inflated invoices and ordered construction supplies for personal use.
"During the course of the audit, we became aware of several instances of alleged, suspected or actual fraud," the auditors wrote in their report.
McDonald said the report was never discussed at a band council meeting, though it should have been on the agenda. Band members have to request it through federal access-to-information legislation.
McDonald said it's clear to him why the 2009-10 audit should be released right away.
"We should be reviewing it right now," he said. "But because of paperwork, because of people in finance are not getting their work done, things aren't being completed. We're not getting answers."
RCMP won't say whether they're investigating the issues raised in the 2008-09 audit, and Sack said he won't discuss that audit until after the band election.