The following letter was sent earlier today by the BCMF to Premier Clark and Prime Minister Harper…
Dear Premier Clark and Prime Minister Harper,
The BC Métis Federation is writing today as new developments regarding our issues about financial mismanagement by the Métis Nation British Columbia (MNBC) change on a daily basis. The financial crisis is escalating and I bring to your attention the latest developments.
I have attached a press release issued by MNBC late last night (10:09 PM) entitled; BC Board of Directors make difficult but responsible decisions to move the Nation forward.” The MNBC press release was issued late last night we believe in response to continued pressure asserted us at the BC Métis Federation. The BC Métis Federation was contacted by internal MNBC sources yesterday and we were shocked to hear that despite the past MNBC messages about how the Métis school in Abbotsford was profitable a decision was made to sell the property.
The issue today is the fact that this is yet another major warning sign of how serious the financial situation is and there is no doubt MNBC will continue to negatively impact contracts delivered to assist Métis people in BC. We are confident that governments may be led to believe this latest move will solve this issue. However we respectfully submit that if Federal and Provincial officials had truly monitored the MNBC financial debt crisis, which we have repeatedly brought to the government’s attention, they should have realized that MNBC leaders and key staff are not honestly representing the full extent and potential consequences, even if a fire sale is completed. More specifically:
- MNBC is facing an immediate cash flow crisis;
- MNBC total debt and financial risk far exceeds fair market value of the school, even if MNBC was able to sell for the MNBC alleged value of $6 million;
- Mortgage over $2 million
- Lines of credit about $3.6 million
- Outstanding property taxes about $250,000
- Deferred revenue from 2010-2011 of about $1 million
- Estimate current outstanding payables in excess of $1 million
- Organizational debt over $2.6 million
- No less than a total negative working capital of approximately 6 million according to the recent MNBC Financial Statements issued March 31st, 2011.
- MNBC has not provided monthly debt reporting updated, although they committed to this in their public MNBC Debt Recovery Plan issued May 2011;
- MNBC Debt Recovery Plan First Quarter Report released in September suggests the Métis school has made profit and will be a future way to pay their increasing debt;
- MNBC has yet to provide a MNBC Debt Recovery Plan Second Quarter Report.
- MNBC suspend operations of Meet so Catering Services Ltd.
- Plus many other matters…
The MNBC Press Release appears to suggest MNBC is making tough choice and being responsible. We submit that nothing could be further from the truth. MNBC did not explain to the public about why this sudden reversal decision as MNBC has vehemently fought any such notion for years. I attached the BC Métis Federation Debt Recovery Plan Year One to showcase what we had proposed almost a year ago. Had this been implemented at that time, we believe the current MNBC cash would not be at a crisis level. Now today MNBC adopts our suggestions, pays no credit to BC Métis Federation and the real issue is the lack of transparency once more from MNBC in this new crisis.
As stated in our previous correspondence we reinforce BC Métis Federation will not stop our efforts until we know Métis programs and services for those most in need are protected.
British Columbia Métis Federation
Suite 300-3665 Kingsway, Vancouver, BC, V5R 5W2
BCMF Board of Directors
Mary Lou Kenney, Aboriginal Affairs and Northern Development Canada, Government of Canada
Rod Cunningham, Service Canada
[ilink url=”/wp-content/uploads/BCMF-Letter-to-Provincial-and-Federal-Governments-December-13th-2011.pdf” style=”download”]Click here to download this letter in PDF format.[/ilink]
[ilink url=”/wp-content/uploads/MNBC_Simpson_Rd_press_release_FINAL_Dec_12_20111.pdf” style=”download”]Click here to download the MNBC Press Release.[/ilink]
[ilink url=”/wp-content/uploads/CCMC-Blueprint-Document-February-2011.pdf” style=”download”]Click here to download the CCMC Blueprint Document February 2011.[/ilink]