AFN ex-CEO was sued by Indigenous health org over alleged ‘reckless’ payout in 2011 | 24CA News

A former CEO of the Assembly of First Nations who was in cost when an AFN official allegedly acquired an almost $200,000 payout was sued in 2011 by a now-defunct Indigenous well being group over her alleged supply of a “large and unwarranted” payout to an official there, in keeping with paperwork obtained by 24CA News.

Paulette Tremblay, a Six Nations of the Grand River member who lives in Ottawa, served because the AFN’s CEO between September 2017 and January 2020.

The National Aboriginal Health Organization (NAHO) sued her on Oct. 27, 2011, 5 months after she ceased to be its CEO, after its chief monetary officer Jason Cheney launched a court docket bid to gather a $112,452 payout he claimed Tremblay supplied him.

NAHO countersued Cheney and added Tremblay to the go well with, claiming it withheld Cheney’s money after the not-for-profit’s board got here to consider the duo orchestrated the fee via collusion, “deceit and/or fraudulent misrepresentations” of information.

Tremblay stated she denies the accusations, though she did not file a defence.

“First and foremost I would like to state unequivocally that there was no wrongdoing on my part in performing my job functions at the National Aboriginal Health Organization,” she wrote in a letter to 24CA News.

“Having left NAHO in July 2011, I was completely unaware of any actions of the organization related to the employee mentioned. I did not know about the lawsuit and the case was closed by the time it came to my attention, so it was not possible to provide a defence.”

In the beforehand unreported lawsuit, NAHO alleged Tremblay permitted an modification to Cheney’s contract after which, shortly after, terminated that contract whereas providing him one 12 months’s wage as severance — all with out disclosing this info to the board.

NAHO alleged Cheney ready his personal cheque, Tremblay signed it, and Cheney then utilized the signature block of NAHO’s treasurer Oliver Okemow to it “without Okemow’s knowledge or consent” to acquire the money.

The lawsuit claimed NAHO then found and withheld the fee, calling it “reckless, wholly unwarranted and obviously contrary to the best interests of NAHO.”

NAHO alleged Tremblay and Cheney dedicated “unconscionable” breaches of coverage, fiduciary obligation, loyalty and belief. The declare stated Tremblay’s actions “put the organization’s existence in jeopardy” and “placed the financial stability of NAHO at risk.”

The allegations have been by no means confirmed in court docket. 

The case reached a mediated out-of-court settlement on Nov. 25, 2011, filings say. 24CA News was unable to study the settlement’s particulars regardless of asking Tremblay and making repeated makes an attempt to contact Cheney and different events.

The go well with was dismissed with out prices on April 2, 2012 with consent from all concerned, together with Tremblay, who signed a doc agreeing to the dismissal.

NAHO closed its doorways on June 30, 2012 after it realized Stephen Harper’s Conservative authorities had slashed its annual funding of $4.4 million.

The Tories stated NAHO’s “governance challenges” contributed to the cuts.

Tremblay honoured in 2019

Tremblay has had a profitable profession as an government and public administrator since then. She acquired an Indspire award for schooling in 2015 and joined the AFN in 2016. 

The AFN introduced her upcoming departure as CEO on Dec. 4, 2019 throughout its annual winter gathering, the place then-national chief Perry Bellegarde honoured her work in a blanket ceremony.

In the months following Tremblay’s departure, the AFN realized of an “irregularity” round a contract modification and payout that allegedly occurred whereas Tremblay nonetheless labored there, in keeping with an inside AFN briefing be aware dated Oct. 30, 2020.

National Chief RoseAnne Archibald has offered this briefing be aware or distributed it amongst an unknown variety of AFN chiefs on a minimum of two events. She confirmed it first to the Chiefs of Ontario, which advocates on behalf of 133 First Nations, throughout an in-camera session at their February 2021 gathering, paperwork affirm.

The briefing be aware later leaked to the media, together with a confidential decision the Ontario chiefs carried demanding a evaluate of the AFN’s monetary insurance policies and contracting practices. The AFN government later voted to not fee the evaluate.

On July 1, 2022, Archibald emailed the briefing be aware to dozens of AFN chiefs throughout the nation as she pressed for a forensic audit. She additionally distributed screenshots of inside AFN emails, a confidential chronology of occasions, and monetary statements detailing two years’ price of AFN contract recipients.

“Attached are documents and emails which in my view show corruption and collusion at the AFN Secretariat,” her electronic mail stated.

Archibald is dealing with two defamation lawsuits due to this electronic mail and this assertion. 

The allegations haven’t been examined and no defences have been filed. 24CA News has independently obtained the e-mail and its connected paperwork. 

Archibald’s electronic mail included a memo she wrote the chiefs outlining why she felt the audit vital. This memo stated the AFN’s government committee of nationwide and regional chiefs was known as for an pressing assembly in October 2020 the place the briefing be aware was offered. 

During the assembly, they have been instructed an worker had transferred almost $200,000 from the AFN account to their private checking account in 2019, in keeping with the memo.

Archibald stated the AFN acquired exterior authorized recommendation from a human sources lawyer who “told us that we needed to NOT say anything” about what occurred, which APTN News beforehand reported.

“At the time, I said that this was wrong and that we had an obligation to reveal the truth of what happened,” Archibald wrote.

Briefing be aware

The briefing be aware itself is marked confidential and signifies the AFN’s present CEO Janice Ciavaglia requested and drafted it.

It stated a senior AFN worker acquired a $191,134 “retiring allowance payout” on Aug. 19, 2019 adopted by a part-time contract to proceed working. It stated it was “unclear” why the AFN would pay out an worker who resigns from full-time employment however then continues to work.

It additionally stated in summer time 2020 the AFN realized an AFN director acquired a revised employment contract that “significantly altered” their severance entitlements on Nov. 27, 2019, so the director would obtain a minimal of six months discover upon termination with out trigger.

The briefing be aware really helpful the AFN dismiss these two workers with out trigger to restrict additional bills, publicity, litigation, reputational injury and potential funding cuts that would stem from an audit uncovering the irregularity.

The briefing be aware named Tremblay together with the 2 workers whose contracts have been terminated. Tremblay didn’t obtain the contract or payout, however signed the revised contract with the AFN director, in keeping with the be aware.

Archibald shared this doc with chiefs with redactions each instances.

“I would suggest that you request the unredacted version from the AFN Secretariat,” she wrote to them in July.

However, it’s nonetheless potential to see the three workers’ names via the tried redactions. CBC News is naming solely Tremblay as a result of she was the senior official and since the opposite two workers couldn’t be reached for remark.

Tremblay, who’s now CEO of an AFN-funded group, stated she has not seen the briefing be aware however is unable to remark as a result of points regarding employees are a human sources matter and sure by privateness and confidentiality.

“In all my dealings with the AFN I have followed the policies, procedures and guidelines and processed all such matters through the AFN Executive Committee. Who at the AFN is implicating me in these matters?” she wrote.

Archibald on a number of events instructed 24CA News she could not touch upon this subject as a result of a chiefs’ decision restrains her from discussing inside AFN points publicly. 24CA News contacted Ciavaglia to debate the briefing be aware however the AFN equipped a press release as an alternative.

“For reasons of privacy and confidentiality, the AFN does not comment on human resource matters regarding its staff,” the assertion stated.

“The AFN is unable to confirm the elements of any confidential briefing note, as we were not provided with a copy of the document in your possession.”

24CA News supplied to supply Ciavaglia with the doc if she needed to debate it however the AFN refused additional remark.

Ciavaglia responded individually via her lawyer but in addition declined to reply questions.