Salt River chief disappointed with outcome of RCMP financial probe

The chief of the Salt River First Nation in Fort Smith, N.W.T., says she's disappointed the RCMP won't be pressing charges related to an investigation of alleged financial fraud at the band.

A year ago, following an internal audit of the band's finances that found "significant mismanagement of...funds by certain previous councillors," Chief Frieda Martselos called on the RCMP to launch an investigation.

The RCMP did that but announced Tuesday that it won't be laying any criminal charges after wrapping up its year-long probe.

Martselos says an opportunity to promote financial transparency has been lost.

"We always talk about First Nations and how they misuse funds. But obviously it hasn't come to the point yet where you have a government that's trying to do things properly and correct things in First Nations so that everything is done above board and I don't think the RCMP and the Justice department are ready to do a thorough investigation."

Martselos has claimed that when she resigned as chief in September 2011, the First Nation had almost $7 million in the bank. But she says that when she was re-elected 18 months later, she found that the band had spent more than $8 million in surplus money, had a $2.2-million deficit, $1.8 million in unpaid bills and had overpaid four former councillors a combined $279,000 in honoraria.

Martselos says that despite the outcome of the investigation, she still expects those councillors to pay up and she says the band is mulling its options.

"We could move forward in a civil court," she said.