Barb Zvatora May 18, 2007
2402 Kreston St
Terrace, B.C., V8G 0G2
Mr. Fred Tohlmie, NLG Interim CEO & Director of Finance
Hon. Robert Douglas Nicholson, Minister of Justice & Attorney General of Can.
Hon. Wally Opal, Attorney General of British Columbia
Via email addresses
Dear Sirs:
RE: Nelson Leeson, Nisga'a President's Message
The attached May 8, 2007 show and tell statement by Nisga'a President Nelson Leeson demands a response and raises more questions as the lies continue to flow.
For example, Mr. Tohlmie witnessed the following important questions raised by Mr. Hubert Doolan and Mrs. Mercer at the May 2006 Special Assembly:
"Hubert Doolan: (he spoke in Nisga'a and said that Ed Allen said about 8 years ago that the Nisga'a moneys are yours and you have a right to know how much you have.) How much money do we have - for the public as well.
Ed Wright, Sec. Treas. response: ….next week we get another advance of the treaty funds. On the first year of the effective date we received 22 million dollars and the next year we received 22 million dollars. In those 2 years the elected people decided to keep back an amount, half, 50% of it to spend - put the rest of it into trust. As you heard this morning we now have 55 million dollars value in the trust that's there now. So this will be our 7th payment and the payments go right until year 14 - that we will be receiving funds from the trust and at the same time we will be paying off the loan of little under 50 million dollars that is - that also includes interest and that will all be paid off in the 14th year also. So the projection I think you may have missed is that we will have over 270 million dollars in the trust if we go on the basis of our plan by year 25 from now. And while we are doing that we are going to spend, all of us, planned through budgeting, over 136 million of that money, not the money that's in the trust but some of the earnings so there will be moneys spent and we will be building the trust so there is a lot of money in there for present and future generations. Thank you.
Unless Mr. Wright gets permission from the Federal Government to establish a "Nisga'a Mint" - there is no way at the rate of spending and theft of our moneys that we will have $270,000,000 million in the trust in 25 years.
There are two Nisga'a Final Agreement Proceeds. The first Nisga'a Final Agreement Proceeds are receivable annually over 15 payments - totalling $280,585,311.
These figures are misleading as the interest that is earned on these moneys are being spent. My perception is that in 2003 the balance should have been $223,529,008 and in 2006 it should have been $184,490,485 as following:
AFS yr | Year | Nisga'a Final Agreement | Nisga'a Final Agreement | Int. % | Interest Earned |
| | payment received | Proceeds Receivable | | and receivable |
| | | Balance | | |
| | | $280,585,311.00 | | |
Mar 31 01 | May 11 00 | $22,021,731.00 | $258,563,580.00 | 0.05185 | $14,548,348.38 |
Mar 31 02 | May 11 01 | $22,021,731.00 | $236,541,849.00 | 0.05185 | $13,406,521.62 |
Mar 31 03 | May 11 02 | $13,012,841.00 | $223,529,008.00 | 0.05185 | $12,264,694.87 |
Mar 31 04 | May 11 03 | $13,012,841.00 | $210,516,167.00 | 0.05185 | $11,589,979.06 |
Mar 31 05 | May 11 04 | $13,012,841.00 | $197,503,326.00 | 0.05185 | $10,915,263.26 |
Mar 31 06 | May 11 05 | $13,012,841.00 | $184,490,485.00 | 0.05185 | $10,240,547.45 |
| | | | | |
Actual Audited Financial Statement Apr 1, 2002 to Mar 31, 2003
AFS yr | Year | Nisga'a Final Agreement | Nisga'a Final Agreement | Int. % | Interest Earned |
| | payment received | Proceeds Receivable | | and receivable |
| | | Balance | | |
| | | $168,480,000.00 | | |
Mar 31 03 | May 11 02 | $13,012,841.00 | | | $8,060,941.00 |
These calculations are based on the Actual Audited Financial Statement balance Apr 1, 2002 to Mar 31, 2003:
2002 $181,968,000 - $22,021,731 = $159,946,269
2003 $159,946,267 - $13,012,841 = $146,933,428
2004 $146,933,428 - $13,012,841 = $133,920,587
2005 $133,920,587 - $13,012,841 = $120,907,746
2006 $120,907,746 - $13,012,841 = $107,894,905
What happened to the balance and to the interest? Who stole it? If these audited financial statements are correct the Nisga'a Mafia agreed to a deal that would benefit themselves and the Nisga'a citizens were misled and voted on a final agreement that didn't and does not exist as presented to the public!!!!!!
If the Nisga'a Final Agreement was followed according to what the Nisga'as believed they were receiving and is posted as the final agreement the Nisga'a Nation should have had a 2003 balance of $223,529,008 - not as it states in the 2002/2003 Audited Financial Statements an amount of $168,480,000 as it also includes interest earned which spent.
Payments were to commence on May 11, 2000 - so in 2006 the Nisga'a Nation should have had $197,503,326 receivable if they had not received the May 11, 2006 $13,012,841.
Has the Federal and Provincial Governments withheld some of the moneys that were supposed to be transferred to the Nisga'a Nation. Are the natives in Canada another sponsorship in the making and are moneys that are supposed to go to the natives being diverted to federal parties in Ottawa?
Either this was the biggest scheme on us as it appears that what the Nisga'a nation voted on was meaningless and what the Federal and Provincial Governments voted on was incorrect or Nisga'a Lisims Government, the Federal Government, and the Provincial Government has stolen the moneys that Nisga'a were supposed receive prior to the final agreement. Is this why since 2003 when we first raised the money theft from the Nisga'a nation - no one seems to have jurisdiction over what the Nisga'a Mafia are doing with our moneys and now with our lands?
The second Nisga'a Final Agreement Proceeds is the Capital Finance Commission Proceeds. On May 2000 there was $107,640,000 then in Mar 31, 2003 there was $98,670,000 and in Mar 31, 2006 there was $89,700,000 (these figures are based on the annual receipt of $2,990,000 unadjusted to the rate of inflation.)
The question asked by Mrs. Mercer and the response by Mr. Wright was:
Mrs. Mercer: I am going to base my question on the Nisga'a Final Agreement Chapter 11 under Nisga'a Government. It says that the Nisga'a Nation will have a Nisga'a Constitution consistent with this agreement which will require a system of financial administration comparable to standards generally accepted for governance in Canada through which Nisga'a Lisims Government will be financially accountable to the Nisga'a citizens. My question is. Since effective date, it was just announced by the Secretary Treasurer here, that we did receive 22 million in the first 2 years.
According to the Nisga'a Financial Agreement that we get 13 million paid each year to the Nisga'a Nation up until the 7th anniversary. According to my calculations the payments have totalled 95 million of settlement trust that we have received and you have just reported that we have 55 million in the trust account. So I'm asking for an accounting of the 40 million that has been spent since May 11 2000. That's my only question because I noticed in your handout that you did earlier, it did talk about the settlement trust but it only talked about the future of the settlement trust - it didn't talk about how the 40 million has been spent. I can be corrected if I'm wrong but again I only based it on the Nisga'a Final Agreement Note #1 to schedule A where it outlines exactly how much money the Nisga'a Nation was going to receive. So if you can probably not today but in the future do a proper accounting of the settlement trust money that gets spent every year.
Ed Wright, Sec. Treas. response: In the 2004 special assembly I had a separate handout of the moneys that were provided to the villages over a number of years. For your information, we first started receiving money when we signed the agreement in principle in 96 and a lot of that money that initially came in went to use - there was a vote by the whole nation at the time. After 2000 it still continued where lump sums were paid out to the villages for economic opportunity projects but also for debt pay down and that continues today. And then the other portions of the money were budgeted right in our budgeting process - but earlier there were lumps of money that our members, each of the villages, and so on wanted to be withheld. Previously before this year we always kept back 50% and put it right into our budget. This year ?% of the principle of the capital to the trust and then we will draw off it through a budgeting process without spending it before it goes in and we just feed off the cash flow through a budgeting process. So we will provide that information and so it can be???? We are aware of it..???? 390 million is approximately about 280 some odd million dollars after 14 years. But of course you subtract probably about 80 million of the loan repayment from that. So the net amount is still over the 190 million."
If you compare the answers that Mr. Wright gave within a few minutes - they are contradictory. In his answer to Mr. Doolan - $270 million in trust after 25 years and in his answer to Mrs. Mercer $280 million in trust after only 14 years minus the $80 million loan (that was in the first answer was under $50 million). So the net amount is still over $190 million. What about the shortfall of moneys received, moneys spent, and moneys stolen?
Mr. Wright also tells Mrs. Mercer " we first started receiving money when we signed the agreement in principle in 96 and a lot of that money that initially came in went to use - there was a vote by the whole nation at the time."
We do not know where that money went. If we did receive the Nisga'a Final Agreement moneys in 1996 - What exactly did the Nisga'a Nation vote on to ratify the agreement and how and where did the money come from when the federal government did not ratify the deal until 2000? Who authorized the payments on the "Agreement in Principal"? Is that why when Nisga'a citizens wanted to ask questions, voice concerns, and/or speak against the agreement that they were either cut off or drummed out before the ratification vote? This reinforces my perception that the Nisga'a Nation was blindly led and lied to by all levels of government - Nisga'a Lisims Government, Federal Government, and the Provincial Government along with their lawyers - we had no lawyers to protect the general Nisga'a populations interests. There are no explanations for the discrepancies in the Audited Financial Statements on the Nisga'a Final Agreement Proceeds Receivable and the moneys that are missing and certainly no explanation how we are to have the amount of $270 million Mr. Wright is so freely quoting in his answer to Mr. Doolan then within a few minutes quotes to Mrs. Mercer $280 million. It appears that the Secretary Treasurer and those who are charged with the duty to follow the promises in "Nisga'a Nation will have a Nisga'a Constitution consistent with this agreement which will require a system of financial administration comparable to standards generally accepted for governance in Canada through which Nisga'a Lisims Government will be financially accountable to the Nisga'a citizens" can pick any numbers they want as no financial statements were ever submitted to the Nisga'a Nation Citizens and when the government executive deal with the audited financial statements the copies are taken back at the end of the session. We have also heard that you cannot take any notes if we view the audited financial statements.
It would appear that interest is missing from the Nisga'a Interim Settlement Trust.
In 2003 (Apr 1 2002 to Mar 31 2003) no money was put to Nisga'a Interim Settlement Trust as according to note 15c transactions subsequent to Mar 31/2003 Cash of $5,506,420 was transferred to the Nisga'a Interim Settlement Trust. What happened to the $13,012,841 principal transfer and the interest of $12,264,694.87 or where was it held since May 11, 2002 - what happened to this money plus the interest that was earned on the $25,277,535? Mr. Wright stated 50% goes to Trust - he failed to explain that is after the $2,000,000 that the Canadian government automatically withholds. What is Lisims Holding Trust - where is the 2003 interest and how much money is in there?
Regarding the balance of the Nisga'a final agreement loan, Mr. Wright states in his answer to Mr. Doolan that " we will be paying off the loan of little under 50 million dollars that is - that also includes interest and that will all be paid off in the 14th year also." A few minutes later his answer to Mrs. Mercer is " subtract probably about 80 million of the loan repayment from that. So the net amount is still over the 190 million."
In 2003 the loan was $57,039,000 and in 2006 it was approximately $60,062,925 even though we had already paid $8 million
If this is actually the agreement, next year, 2008, the capital transfer we will be receiving is $22,637,828; however, $10,339,822.44 is deducted from the capital transfers for the loan so we will receive an amount of $12,298,005.56 - all loan payments are automatically deducted from the capital transfer amounts made by Canada.
The Nisga'a Final Agreement Debt's accrued and expensed interest in 2003 is $2,865,000 and for 2002 is $2,803,000.
As per the following INAC letter - $2,000,000 is deducted from the capital transfer before it is received by the Nisga'as - are the $865,000 and $2,803,000 invested in or designated to a special purpose fund and where is this accounted for?
As Nelson Leeson is claiming we are doing so well - what has happened to all our moneys?
If we had started receiving settlement moneys in 1996 according to Mr. Ed Wright and we also were receiving these moneys (attach 1 Debates of the Legislative Assembly Dec 10 1998) in Nisga'a Lisims Government consolidated financial statements 2003 (Nisga'a Interim Settlement Trust Fund) there is $27,818,764 which includes cash of $5,506,420 that was transferred to the Nisga'a Interim Settlement Trust after March 31, 2003.
From 1996 - 2002 we should have in trust $132,130,386 + for 2003 $13,012,841 which total of settlement fund should have been $145,143,227 - instead we had in 2003 $22,312,344. So who is doing good? Select few with the moneys that are missing or was it a Nisga'a Final Agreement built up so that the people would be fooled into accepting it because by the time the Nisga'a Nation voted on it the received moneys were already squandered and/or stolen?!!!! How is it that Members of the Legislative Assembly don't know of any moneys that the Nisga'a had received since 1996 as there is no mention of it in the debate?
Library of Paliament
THE NISGA'A FINAL AGREEMENT
Prepared by:
Mary C. Hurley
Law and Government Division
9 February 1999
Revised 24 September 2001
The initial FFA provides for annual transfers to the Nisga’a of over $32 million, 90% of which is already available under current arrangements with Indian Act Nisga’a First Nations.
ATTACH #!
1998 Legislative Session: 3rd Session, 36th Parliament
HANSARD
Official Report of
DEBATES OF THE LEGISLATIVE ASSEMBLY
(Hansard)
THURSDAY, DECEMBER 10, 1998
Afternoon
Volume 12, Number 25
NISGA'A FINAL AGREEMENT ACT
(second reading continued)
The next question I get asked very often is: what is the total cost of the Nisga'a deal? The fact is that we don't know what the final costs will be. The government has identified costs totalling at least $490 million, including $320 million in cash costs and $170 million in land and other costs. Of that amount, B.C. taxpayers will contribute $227.5 million through the provincial government -- or almost 47 percent -- in addition to their share as Canadian taxpayers through the federal government. These costs do not include the $29 million annually that the Nisga'a government now receives in federal and provincial transfer payments, which will be increased to $32.1 million per year under the Nisga'a treaty.
Nisga’a Final Agreement 2002/2003 Annual Report 36/
Extended Family Values
Programs & Services
During the reporting period, Canada transferred $36 million to Nisga’a Lisims Government under
the Fiscal Financing Agreement (ffa) to support the delivery of programs and services in the areas of
health, education, social programs, income assistance, and local services. British Columbia contributed $1,323,862 to the Nisga’a Valley Health Board specifically for physician, diagnostic, and treatment services. Each year, nlg allocates over $150,000 to each Nisga’a village specifically for the delivery of programs and services for youth.
The following 2002/2003 audited financial statement lists only $34,064,641.
Someone has stolen $1,935,359 from the Federal Government - the difference between 36 million that was transferred and 34 million listed in the audited financial statement. IS THIS THE REASON WHY NO ONE SEEMS TO HAVE JURISDICTION?????
In 2002 - 2003 the Nisga'a Nation was supposed to receive 36 million dollars in Federal and Provincial transfer payments. $3,103,665 Capital Finance Commission Proceeds, $13,012,841 Nisga'a Final Agreement funds, $12,204,694.87 Interest on the Nisga'a Final Agreement funds, plus all the grants and most of them are missing in the above statement. All the moneys received including moneys for the first 5 years from the transition and implementation funding and somehow the Nisga'a Mafia spent everything and ran a deficit of $6,000,000. We have documented and questioned other moneys lost in transit such as the $1+ million in stumpage fees lost between Greenville and Nisga'a Lisims Government, $80,000 grant for enTel, etc. etc. etc.
Has our President looked into the eyes of our people who are trying to survive on $180 a month social assistance and seen hope, determination and pride? At least before the Final Agreement, our people had their dreams of what they could accomplish with all our lands - even those dreams have been stolen.
Barb Zvatora
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