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Splatsin Community Centre (photo by Liam Verster / Vernon Matters)
Misuse of Funds

Splatsin chief, councillor removed from office

Sep 14, 2023 | 10:55 AM

Chief Doug Thomas and Councillor Beverly Thomas have been removed from Splatsin First Nation council.

The chief and councillor of the Enderby-area First Nation were removed from office following the review of complaints of misuse of Splatsin funds.

Both were also banned from running for office for eight years.

On May 26, 2023, the Splatsin Complaints and Appeal Board received two petitions, both of which came from councillors Len Edwards, Sabrina Vergata and Theresa Williams.

The first petition alleged that Councillor Thomas received honorarium and gas cards which she did not return to the band and that she co-signed two bank drafts “while suspended and/or in conflict of interest.”

The second petition alleged that Chief Thomas “attended the bank on two occasions, along with his aunt, Councillor Thomas, and withdrew Splatsin funds by four bank drafts payable to a forensic audit firm, a related law firm, and to a separate law firm which the chief had retained to represent him.”

There were two bank drafts signed by Chief Thomas on April 18, 2023. One to MLT Aikins in the amount of $2,700 and one to MNP LLP in the amount of $25,000.

Chief Thomas signed for two bank drafts on April 26, with Councillor Thomas as a co-signer. Both were made to Stevens and Company, one for $25,000 and the other for $36,501.75.

The petition against Councillor Thomas claimed she received an honorarium and gas card of a total value of $650 between April 21 and August 4, 2022, from attending Landmarks project meetings. The funds and card should have been returned to the band administration as there is a due process to be followed for claiming travel expenses, which Councillor Thomas did not follow.

The petition also stated Councillor Thomas was suspended on April 12, 2023, after serving a Federal Court Notice of Application that named “Splatsin” as a respondent, meaning her serving in office would be considered a conflict of interest. As she was suspended at the time she co-signed the bank draft, the petition claimed she was not permitted to co-sign, adding she also breached Splatsin financial procedures which stated that two family members are not permitted to co-sign cheques.

The chief and councillor (Respondents) were placed on paid temporary suspension after the petitions were received and until the matter could be resolved .

Both petitions asked that the involved parties be removed from office pursuant to Section 6 of the Splatsin custom election code, which allows electors or the council acting as a majority file a petition for removal.

The Respondents filed for a dismissal of the petitions initially, stating a decision from the “majority of council” could not be obtained due to a combination of suspensions and resignations that made holding a Council meeting not possible.

The Complaints and Appeal Board (the Board) stated the wording in section 6 is “internally inconsistent” and will need revising in the future, but stated the members of council and electors of Splatsin should have “the right and ability to bring a petition for removal as individuals.”

The board told the three councillors they could go forward as three individual petitioners, which they did, allowing the board to proceed with the matter.

In August of 2023, the board held hearings on the petitions.

During those hearings the petitioners brought forward witnesses who gave oral testimony and submitted documentary evidence, which included the RBC transaction history that showed the bank draft withdrawals along with the corresponding signature verification forms and copies of the drafts, a table of travel expenses of chief and council between May 2022 and March 2023, and a table showing honoraria received by Councillor Thomas between April and August of 2022.

The board said the respondents arguments at the hearings focused heavily on the interpretation of section 27 of the Governance Policy, Authorizing Expenditures, which stated the “Kukpi7 (Chief) and the band manager may enter a contract for legal counsel, financial audits or professional consultants on behalf of the Splatsin.”

Chief Thomas also argued authority to sign cheques on behalf of Splatsin; that all four drafts were payments made to third parties with whom he had lawfully entered into contracts; and that he had no personal monetary benefit or interest in the payments.

Councillor Thomas stood by her stance that she accepted the honoraria and gas cards as she was attending events as an Elder and not a Splatsin representative, adding the evidence shown by the petitioners did not show she claimed travel reimbursement from the band.

She also said she did not consider herself suspended on the dates when the bank drafts were co-signed, alleging the three councillors had “failed to follow due process when disciplining and suspending a member of office.”

Councillor Thomas also claimed the Splatsin policies prohibiting family members from co-signing cheques or bank drafts should not apply, saying “the relationship between nephew and aunt is far removed from being immediate family members which would tend to attract a more obvious finding of conflict.”

The respondents also argued the Petitioners presented evidence that contradicted each other and called into question their credibility.

The respondents brought forward witnesses who gave oral testimony and presented evidence which included forensic audit updates, bank drafts and receipts, emails and letters.

After reviewing the evidence and testimonies, the Board concluded that Chief Thomas’s conduct was improper and contravened Splatsin financial law and policy.

The board found that Councillor Thomas did co-sign the bank drafts with a family member, which was not permitted, and in the process also conducted Splatsin business while under suspension. These constituted breaches of the Splatsin code of ethics.

The board did rule that Councillor Thomas was acting as an Elder, and not a member of Splatsin council, when she attended the events and received the honorarium and gas cards, and that matter was dismissed.

The board ruled both Doug Thomas and Beverly Thomas were to be removed from their elected positions and the pair were banned from running for office for eight years, as of the date of the decision.

Thomas was elected as chief of the Enderby-area First Nation in January 2022, after defeating seven-term incumbent Wayne Christian 89 to 84 votes for a four-year term.

The report from the Splatsin Complaints and Appeal Board did not indicate if a byelection would be held to fill the vacated positions.

To read the First Nation’s news release click here.

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