CIBC sues Yukon's Liard First Nation over $135K debt

The Whitehorse CIBC branch is going to court to try to recoup money loaned to the Liard First Nation.

CIBCsays it set up a $200,000line of credit for the First Nationalmost three years ago. Documents filed in Yukon Supreme Court say that since then, the First Nation has incurred $135,000 worth of debt.

The bank says the First Nation has not responded to demands for repayment. Interest on the debt is accumulating at a rate of $15 perday.

None of the allegations have been proven in court.

The First Nation has not filed a response to the bank's suit.There's no word yet on when the case will be heard.

Financial controversies accumulate

The CIBCaction comes on the heels of other questions aboutthe First Nation's finances.

The First Nation's leadership has been criticized for failing to account for $500,000 provided by the Yukon governmentearlier this year. It is also several years late in financial reporting to Indigenous and Northern Affairs Canada.

The First Nation has been under third-party management since 2014 which means a B.C.-based company is administering federal funding.

Neither Chief Daniel Morris, nor any councillors,could be reached for comment.

Morris and the council's terms ends on Dec. 15, but they have already missed the deadlines to set up the required election committee or to namea returning officer, as required by the First Nation's custom election code.

A group of citizens is now trying to force an election by taking the leadership to court. That case is now before the Federal Court of Canada.