Dam blamed for First Nation’s financial woes
Nisichawayisihk Cree
Nation in million-dollar debt
The Nisichawayisihk
Cree Nation (NCN, formerly known as Nelson House) is in
financial trouble. Indian Affairs has ordered the First Nation
to get control of its finances, which show a deficit of millions.
Community members
who fought the deal with Manitoba Hydro to build the $1 billion,
200-megawatt Wuskwatim dam blame the project for the band’s
financial problems, saying their worst fears are coming true.
Chief Jim Moore
says the problem began before he was elected in August—overspending
to the tune of $1.2 million on Wuskwatim preparation. Moore recently
approved a 25 percent pay cut for himself and the council.
The deal struck
with Manitoba Hydro—the first of its kind
in Manitoba—will see the band become part owners of the dam.
NCN will invest $28 million plus a $56 million loan from Manitoba
Hydro in return for a 33 percent share in the dam. Manitoba
Hydro officials say the band doesn’t have to come up with
any more money until the project is complete in 2011.
“We shouldn’t
have put any money from the community into this project because
of the condition of our community right now,” said Carol
Koblinski, who has opposed the Wuskwatim deal from the start. “We’re
so far into debt right now, for [Manitoba Hydro] to keep taking
is really affecting the community and its members.”
Although no
profits are guaranteed, band officials have estimated that the
Nation could receive annual profits of $1–$3 million in 2010,
and up to $15–20 million by 2062.
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