Fort Liard Chief Harry Deneron suspended by council, following lawsuit

The Acho Dene Koe bandsuspended Chief Harry Deneronuntil further notice, citing a "lack of confidence" in his leadership amid an ongoing lawsuit involving Deneron and the band's development corporation.

The FortLiard, N.W.T., band council voted to suspend Deneron at a meeting March 9, says Sonia Timbre, a band councillorand spokeswoman for the council.

"The band lost confidence in Harry as a chief," Timbre said. "We were elected to represent the majority of the band members and not just a select few."

• Acho DeneKoe First Nation chief sued by band's development corporation

A majority of councillors can vote to suspend a chief under the band's governance structure, Timbre says.

"The council members are acting as a whole. We're trying to do what's best for the community. There are a lot of things being discussed, agenda items, what we're looking into," Timbre said.

Lawsuit over alleged financial misconduct

Deneron is being sued by ADK Holdingsover allegations hetried to steer government contractsaway from the band's construction firm and toward a company he has a financial stake in.

Those contracts, for airport and highway maintenance in FortLiardwill be put out to tender shortly, according to aGNWTspokeswoman.

The lawsuit allegesDeneron'spersonal recommendation to the government is behind that decision and one of the companies bidding for that work owesDenerona financial obligation.

Deneronhad yet to file a statement of defence in that case as of Friday afternoon, and the allegations have not been tested in court.

Suspension affects Deneron's other roles

This suspension complicates Deneron's position as a negotiator for the Acho Dene KoeFirst Nationand the band is still determining how that position will be affected, Timbre explained.

"There's so many things we need to look at as a council and how it will affect the negotiations and that's another thing that we're looking into," she said.

A public meeting to discuss this issue is scheduled for later this week.

Deneron did not return a call from CBC News requesting comment on this story by Tuesday evening.