In this blog post I sent an open letter to Manitoba Hydro about the Chemawawin Resource Trust. Well, earlier this week I received a response from Hydro. You can see it by clicking here.

And if you're really interested in the issue (I hope you are  as this is about accountability!), below is my response to Manitoba Hydro and an email to Minister Dave Chomiak (Minister responsible for Hydro)

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Dear Scott Thomson,

Thank you for your correspondence dated February 27, 2013.

Your letter seems to suggest Manitoba Hydro is content to turn a blind eye to the band’s breach of responsibility, but legally the band could not have drained the trust fund without Manitoba Hydro’s consent.

Section 10.04 clearly states the trust could not be amended without being “approved by Chief and Council by council resolution and, in accordance with the procedures established under section 10.05, and the written consents of Hydro and Manitoba.”

Section 10.02 clearly states a similar requirement, noting the trust can only be amended “with the consent of Hydro.”

As you are aware, Manitoba Hydro helped draft the agreement and only provided the $400,000 for the trust fund once such safeguards were in place.

If Manitoba Hydro is now content to shrug its shoulders about the breach of this agreement, why were such safeguards included in the first place?

Will you reconsider your position and instead side with the grassroots on the Chemawawin First Nation and taxpayers who expect accountability for how these funds were spent?

We look forward to your response.

Colin Craig,
Prairie Director – Canadian Taxpayers Federation

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Dear Minister Chomiak,

As you may be aware, the Chemawawin First Nation was provided with $400,000 from Manitoba Hydro in 2004 to set up the Chemawawin Resource Trust.

The agreement clearly states in section 10.4 that the trust could not be drained without being “approved by Chief and Council by council resolution and, in accordance with the procedures established under section 10.05, and the written consents of Hydro andManitoba.” The band was only to have access to interest from the trust.

As you may have seen in the media, the Trust has since been breached; the band drained the funds in 2005.

Has your government ever provided approval to drain the trust? If not, how are you going to address the breach of this agreement?

Thank you for your attention to this matter, we look forward to your response.

Colin Craig,
Prairie Director – Canadian Taxpayers Federation