High Finance, Sweet Deal

"I want the public to know that the membership knew nothing about this. And if it wasn't for this new transparency act, I don't think we ever would have known."
"Everybody knows who we are, and it's embarrassing."
Marvin Joe, band councillor, Kwikwetlem First Nation

"We understand that seeing such a large number for the chief's salary is disconcerting."
Kwikwetlem First Nation band office

"Whoever thought the bonus would be this much? I tell you, I never would have. I never in my wildest dreams thought I would make that kind of money on [capital] projects like this."
Chief Ron Giesbrecht, Kwikwetlem First Nation

Chief Ron Giesbrecht -- Kwikwetlem First Nation

According to the 2011 census, 44 people live on the two Kwikwetlem reserves bordering the Coquitlam River between the cities of Coquitlam and Port Coquitlam. The remainder, which would be the other half of the Kwikwetlem membership lives elsewhere around the province, and across the border in Washington State.

One of two band councillors at Kwikwetlem, Mr. Joe is more than a little embarrassed at the revelation, and none too happy that the chief of his band council raked in the equivalent to $1.6-million in taxable earnings, only there was no tax paid since First Nations living on reserves don't pay tax on earnings, so Chief Giesbrecht's take-home for the 2013-14 fiscal year was a measly $914,219. And we the public, and the band council and the 80-some-odd members of the band know that now, thanks to the newly legislated First Nation Financial Transparency Act.

The band received $747,855 from the Department of Aboriginal Affairs for its 2012-2013 financial year. Which translates to the Chief the following year surprised and pleased no end, with a take-home pay of almost $200,000 more than the band received from the federal government to administer its affairs. And oh, by the way, Chief Giesbrecht received another $16,574 to cover his declared expenses for last year.

However, as with most things that turn out smelling odoriferously, there is an explanation here. The chief acts also as the band's economic development officer normally earning $100,519 annually. Some might think that alone an overly generous income to administer the affairs of a band whose total population is fewer than 90 souls.

The income the chief derived for the last fiscal year, however, seemed outrageously out of order, quite outranking the salary of any other mayor, premier or federal authority figure in Canada.

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The Kwikwetlem First Nation has written a letter to the provincial government and the City of Coquitlam stating that they claim land title interests to the 250-acre Riverview Hospital grounds. Vancitybuzz.

But the statement issued by the Kwikwetlem First Nation band officer explained that in 2013, Chief Giesbrecht came into possession of an additional bonus to the value of $800,000 resulting from a section in the contract for the band's economic development officer allowing him a 10% share of all new "capital projects and business opportunities", as incentive, no doubt, to have him work overtime on the file.

On the other  hand, because it appeared somewhat unseemly when measured by all the above details, the band hastened to assure its members that this provision leading to the 10% bonus has since been rescinded. And although the band office chose not to reveal the particular project that led to the windfall bonus, it may represent an $8.225-million payout from the B.C. government that year.

An enormous sum, given that the year before that payment from the province to the band, in comparison, was $512,000. A spokesperson for the government of British Columbia gave confirmation of the signing of an "economic benefits agreement" with the band resulting from a recent "land sale". Stressing, at the same time that "any financial benefit flows to the Band and council -- not any individual."

The Chief did happen to casually mention that the band had secured an $8.5-million contract to clear dirt for the Evergreen Line, an 11-kilometre extension to the Vancouver Sky-Train network. "Nobody here gets ten percent of anything significantly large like that -- it just doesn't happen", said Ed Hall the other of the two councillors for the Kwikwetlem who himself earned $52,350 for the same period.

Clearly, something got lost in translation.