PRESS RELEASE

Algonquins of Barriere Lake File Court Action against the Government of Canada
and Past & Current Third Party Managers
(Kitiganik, Algonquin Territory/January 30, 2015) Chief and Council for the Algonquins
of Barriere Lake today filed a lawsuit against Canada and the communitys past and
present third party managers, BDO Canada LLP and Hartel Financial Management
Corporation. The lawsuit claims harms suffered by Barriere Lake caused by Canada
and the third party managers, by mismanaging and withholding funds that were to be
used for the benefit of the community and its members. This includes exorbitant fees
paid to the third party managers from Barriere Lakes funds. The services provided
by the third party managers harmed, rather than helped, our members, and interfered
with our ability to improve the administrative, financial, and governance services we
provide to our community.
Our members continue to experience third world living conditions, in spite of the
tremendous wealth generated through resource extraction within our traditional territory.
Our roads, water, hydro, school, and social services remain gravely underfunded, when
compared to the funding available to Canadians living in non-First Nations
communities.
The leadership and administration of Barriere Lake have been working diligently to
regain control of our own financial resources and governance, but the information
essential to do so has been routinely withheld by Canada and by the third party
managers. Repeated written and verbal requests for the most basic information about
our own finances have been ignored.
After 8 years of third party management, Canada claims that Barriere Lake remains in
default of the funding agreement imposed by Canada. The leadership and
administration of Barriere Lake have had virtually no control over or information about
their finances during that time. Surely, if we remain in default, it is because of chronic
underfunding by Canada and the failure of third party managers to competently and
diligently managed our finances, for the benefit of the community and its
members. Instead, Canada now claims we are in breach of the First Nations Financial
Transparency Act for not reporting financial information that remains in the exclusive
control of the third party managers.
The third party managers hold Barriere Lakes money in trust, and are therefore
required to administer those funds for the benefit of the community. Instead, for the last
8 years, our community has suffered gravely under the third party management

BARRIERE LAKE INDIAN GOVERNMENT

GOUVERNEMENT AUTOCHTONE DU LAC BARRIRE

regime. Without financial agency, we have been at the mercy of a series of managers
who have ignored our reasonable requests for basic information, and have bounced
cheques to suppliers, interfered with our economic relations with suppliers, hired and
fired employees without authority, and otherwise proven themselves completely
unconcerned with the interests, well-being, and future of our community. The same
accountants have charged millions of dollars in fees, which have been paid by Barriere
Lake, without our consent. And our members continue to live in third world conditions.
The millions paid in fees to the third party managers could have been used by Barriere
Lake to hire its own professional accounting, finance, and administrative staff, and to
improve the infrastructure and services available to our members. Instead, it has gone
to accountants in offices hundreds or thousands of kilometers from our community, who
are neither accountable to our members nor motivated to bring us out of default,
because our continued default status ensures that their contracts will be renewed by
Canada.
We have attempted to discuss our circumstances with Canada, and requested that third
party management no longer be imposed on us. Failing that, we have requested
support for taking the steps that Canada views as necessary to bring us out of third
party management. Canada, through Minister Valcourt, has ignored or refused these
requests.
Regrettably, we have been left with no choice but bring a legal claim against Canada
and our third party managers for the damages we have suffered during the last 8 years,
because of the money taken from Barriere Lake without its consent, the removal of our
autonomy and ability to govern ourselves, the reduction in our administrative and
infrastructural capacity, and the harm to our communitys reputation. Our claim is for
$30 million: this represents the losses we have experienced because of the imposition
of third party management, the negligent performance of the third party managers, and
the numerous breaches of the fiduciary obligations owed by Canada and the third party
managers to Barriere Lake. If we are successful, this money will be returned to the
community, for the benefit of the community, rather than being held and used for the
benefit of accountants in far-off cities.
-30For More Information Contact:
Chief Casey Ratt
Tony Wawatie, Interim Director-General
Michel Thusky (French) Spokesperson

BARRIERE LAKE INDIAN GOVERNMENT

Cell: (819) 441-8002

Cell: (819) 355-3662
Telephone: (819) 435-2171 & 435-2172

GOUVERNEMENT AUTOCHTONE DU LAC BARRIRE