High-profile chief defends leader embroiled in Lake St. Martin housing scandal

CTV Winnipeg: Nelson defends Lake St. Martin chief Jeff Keele on Terry Nelson from the Southern Chiefs' Organization defending Adrian Sinclair over handling of Lake St. Martin homes.

The head of the Southern Chiefs' Organization says the allegations that Lake St. Martin's chief sold off condemned homes are false.

Terry Nelson offered public support Tuesday for Lake St. Martin Chief Adrian Sinclair.

“The accusations that have been made against the chief are not founded,” said Nelson.

Following a CTV report last week, the federal government said it appeared up to 49 flood-damaged homes slated for demolition on Lake St. Martin may have been sold off by the band.

But Nelson said only three were sold by the band, and with the tenants’ permission.

That contradicts what Noel Beardy told CTV last week. He said his house and all of his possessions were moved 300 kilometres away without his knowledge.

Nelson disputed Beardy's claims.

CTV News has been told, however, by at least one buyer that he brokered deals to sell more than 20 homes.

A document obtained by CTV News shows a list of 12 buildings with the broker's name attached.

Noel Beardy responded Tuesday to Grand Chief Nelson, saying he doesn't have his facts straight on the numbers of homes sold.

"I've been getting calls that more (than) three were sold by the band,” said Beardy.

The RM of Portage la Prairie has issued a stop-work order on renovations being done on Beardy's home, which he said was sold and moved to Delta Beach without his permission.

Ottawa said it will forward any evidence of criminal wrongdoing to the RCMP.

The federal government said it had pledged $2 million for the demolition of the flooded homes. It has now frozen the remaining amount which had not yet been paid out.

Grand Chief Nelson said he welcomes any investigation, but worries it could delay the now three-year-long ordeal of getting people out of hotel rooms and into permanent residences after the 2011 flooding.

"They're still not back home and the federal government has not put an offer on the table," said Nelson. He said he is asking the federal and provincial governments for $400 million to rebuild Lake St. Martin and three other reserves impacted by the 2011 flood.

Nelson said the band did not take money from the sale of the Lake St. Martin homes.

He said that went to the contractor doing the demolition work on tearing them down.

Documents obtained by CTV show Lake St. Martin did the majority of the demolitions for the first phase of the contract. Chief Adrian Sinclair also said last week in a statement that he was using the money to help clean up the community.

Selkirk-Interlake MP James Bezan issued a statement Tuesday.

“The Minister of Aboriginal Affairs and Northern Development has been informed of allegations that buildings slated for demolition at Lake St. Martin First Nation have been sold by Chief and Council. AANDC officials have communicated the Minister’s expectation to the Chief; that these homes be demolished and not re-sold,” said Bezan.

Bezan stressed again that if evidence is uncovered on any criminal wrongdoing, it would be passed along to police.

- with a report from Jeff Keele