Manitoba Mtis Federation gave contracts to affiliates, employed president's wife on disputed program

The Manitoba Mtis Federation (MMF) gave contracts to parties affiliated with itand employed its president's wife while managing a disputedmultimillion-dollar veterans program for the Mtis National Council (MNC), affidavits obtained by CBC News reveal.

Made public in February, the MNC's latest court filings include MMF contracts with a company chaired by MNC ex-president Clem Chartier who oversaw the initial, now-disputed transfer of the veterans program to the MMF and an MMF-affiliated education authority, the Louis Riel Institute.

MMF President David Chartrand also recommended his spouse, Glorian Chartrand, work on the program in early 2020, the documents show. She is listed in some files as senior assistant in her husband's then-MNC veterans affairs office, as program director in others.

The documents were produced by the MNC's external accountant, Benoit Groulx of Baker Tilly in Ottawa, who believed there were questions raised by the MMF's books, his Ontario Superior Court affidavit says.

The MNCis seekingto regain control of $8.65 million tied to the programuntilalawsuit filed last yeargoes to trial. Among other things, the MNC alleges Chartier and Chartrand improperly orchestrated the program transfer to harm the MNC and benefit the MMF.

The wider claim seeks $15 million in damagesagainst Chartier, Chartrand, the MMF and several others. Chartier and Chartranddeny the allegation of impropriety, saying the program was outsourced to the MMF because the MNC is not a service provider.

None of the allegations have been provenin court.

The legal war over the Mtis veterans fund traces back to a $30-million contribution agreement between Veterans Affairs Canada and MNC from 2019, when Chartierand Chartrand were president and vice-president of the MNC.Under the deal, Canada agreed to give MNC $30 million to spend on $20,000 individual recognition payments to Mtis Second World War veterans or their family members, or commemorative initiatives in their honour.

MNC outsourcedthe veterans program to MMF via a service delivery agreement inSeptember2020.

At the time, a schism was deepeningamong the MNC's five provincial members over the Mtis Nation of Ontario's citizenship practices. In September 2021, before a court-ordered MNC election, the MMF broke from the MNC.Chartierretired after 18 years as MNC president andwas appointed an MMF ambassador shortly after.

The February motion says the MNCbelieves Chartrand and the MMF have since misused the money for ineligible expenses, submitting as evidence bank statements, contracts, cheques, cheque requisition forms, charts and internal financial statements, which CBC News obtained and reviewed.

These includea $1.4-million contract with the Louis Riel Institute to produce a four-book memorial series, and a grant worth up to $190,000 to the Mtis Legal Research and Education Foundation, where Chartier is chairperson, to produce a virtual legacy library for Mtis Second World War veterans.

In an interview, Chartrand said the MNC failed to mention that the contracts were awarded fairly by an arm's-length program commission, and that his wife's hiring was handled transparently. He branded the claim a smoke-and-mirrors show fuelled by a personal vendetta, not hard evidence.

"It's bogus," he said.

"This is a political fishing expedition."

Chartier had no role in securing grant: lawyer

Chartrand said it was understood from the outset that the MMF would administer the program for the MNC.

On Sept. 29, 2021, the date when the MMF's secession from the MNC kicked in, the MMF and Chartrand signed the book deal with Louis Riel Institute.

The veterans program's commission approved the grant for the legal foundation's project on Nov. 17, 2021, according to the final contribution agreement, which Chartier and Chartrand signed the following spring.

In an email to CBC News, Chartier's lawyer James Renihansaid the ex-MNC president had no influence or involvement in the commission's decision to bankroll the proposed virtual library.

The foundation has been filming events and gathering documents for more than 20 years, and its application proceeded just as any other, he said, adding that the commission's decision was based solely on merit.

"There was thus no conflict of interest of any sort," Renihan wrote, calling the litigation unfortunate and misguided.

"No funds have been misused. Rather, they are being used to recognize and honour the contributions of Mtis veterans, just as intended."

Chartrand said the Louis Riel Institute is one of only two Mtis-owned educational institutions and has Pemmican Publications linked to it, making it aqualifiedcandidate to enshrine the veterans' legacy in print.

Chartrand defends wife's hiring

The MNC's statement of claim accuses the former MNC regime of paying Glorian Chartrand excessive or inappropriate sums topping, at times, $13,500 per month, through contribution agreements with her or "Ryley James."

Ryley James Financial Inc. was Glorian Chartrand's consulting firm. It wasdissolved on March 17, 2023, according to Manitoba corporate records. The firm's registered address was a Winnipeg residence owned by David Chartrand, property records show

Chartrand told CBC News he anticipated someone might try to use this issue as a political weapon, so he recommended Glorian work on the program at a public meeting attended by veterans and members of the MNC's provincial associations.

Theminutesfor the meeting held at Winnipeg's Fort Garry Hotel on Feb. 6, 2020, say Chartrand invited participants to express any concerns or objections over her appointment there or to him in writing.

"There was not one objection," Chartrandsaid.

He said Glorianknew the file in and out, having lent more than 15 years to the cause as a volunteer. She received a contract to set up theprogram's organizational structurethen leave it to whomever would run it, he said.

"It goes back again to the premise: What's this lawsuit all about?" he said.

"They take a personal attack on my wife, trying to damage my reputation, trying to damage the MMF, because there's not a penny missing."

CBC News also requested an interview with MNCPresident Cassidy Caronbut the MNC,citing the sensitive nature of the case and the need to let the courtprocess play out,declined to make her available.

CBC News then provided the MNC a list ofwritten questions, which included the chance to respondto Chartrand'sstatements. TheMNCdeclined to answer theseas well.