Sandy Bay CFS head fired after allegations of financial irregularities totalling millions, chief says

The head of Sandy Bay First Nation's child welfare agency has been fired after financial irregularities were discovered, the Southern Chiefs' Organization alleged Wednesday.

Richard De La Ronde, who served as executive director ofSandy Bay Child and Family Servicesfor several years, has been terminated, the organization that represents southern Manitoba First Nations said.

Forensic auditors are looking into RADKA, a company owned by De La Ronde that has been receiving prepaid rent from the Children's Special Allowance fund to build CFS offices that are not complete. The child welfare agency's headquarters in Sandy Bay First Nation, about 130 kilometres northwest of Winnipeg, burned down in 2019.

Sandy Bay Ojibway First Nation Chief Trevor Prince said in an interview thatDe La Rondemaderentprepayments to his company forthe building, which isabout half built, until 2040an amount totalling roughly $3.3 million.

De La Ronde also owns the Winnipeg andPortage La Prairie offices ofSandy BayCFS and receives rent from the child welfare agency for those properties, Prince said.

The Southern First Nations Network of Care, which oversees First Nations child welfare agencies, tookover administration of Sandy BayChild and Family Servicesin June, after it noticed financial issues.An audit is being done byGrant Thornton LLP, the Southern Chiefs' Organization said in an email on Wednesday.

The child and family services agency is running a deficit and work is being done to correct that. Part of that work includes stopping payments on two personal credit cards belonging to De La Ronde and his wife, the emailsaid.

Auditors provided a preliminary report to the Southern First Nations Network of Care in August, with an interim report to be delivered in the coming weeks, the email said.

Millions of dollars lost: chief

At this point, Prince alleges millions of dollars have been taken from the CFS agency, which has about 100 children in its care, although he doesn't yet know exactly how much.

"That's basically like stealing from the kids," said the chief, who was elected in October.

"We're going to do what we can to get whatever funds we can back to where it's supposed to be."

CBC News has not been able to reach De La Ronde for comment.

He's listed as having a home in West St. Paul, Man., which has thesame address as RADKA, his company. CBC News visited De La Ronde's home, but he didn't answer the door.

The Manitoba First Nations Police Service says it's been notified of the allegations and is investigating. No charges have been laid as of Wednesday.

Impact on children in care

On Tuesday, the SouthernFirst Nations Network of Care gave a public update on the audit that outlined just a few of the alleged irregularities, said Randal Roulette, a Sandy Bay Ojibway First Nation councillor.

"It's kind of unsettling," he said about what they've found so far.

"We're right in the thick of it, right in the middle of the investigation. Thank goodness to the Southern Network of Care coming to provide support for us. We're going to be working very closely with them to make sure we take back control of our agency."

The First Nation is also doing its ownreview of the child welfare agency, Roulette said. The fileswill be handed over to police, he said.

Roulette is worried about the children who are in care.

"Obviously if there's no money to be providing certain services for the children, the services are going to suffer," he said.

"It's going to put the agency in a situation where they're going tobe in debt for a very long time."

Sandy Bay CFS head Richard De La Ronde fired after financial irregularities discovered

3 years ago

Duration 1:38

Richard De La Ronde, the head of Sandy Bay CFS, has been terminated after allegations of financial irregularities totaling millions.