B.C. First Nation chief was paid almost $1-million last year

by Bill Curry, The Globe and Mail, July 31, 2014

A First Nation chief in British Columbia was paid close to $1-million last year, according to salary disclosures that are being released for the first time this week.

Chief Ron Giesbrecht of the Kwikwetlem First Nation is listed as receiving $914,219 in remuneration last year, plus an additional $16,574 in expense reimbursement. Individuals with Indian status who work on a reserve are not required to pay income tax.

It is not clear if the compensation is purely salary or whether the chief received contracts from the First Nation. If the money is in salary and was tax free, it would be the equivalent of a $1.6-million taxable salary for someone working off reserve.

Band Administrator Dale Lessoway told the Globe in an email that the First Nation is preparing a statement on the issue that will be distributed when it is ready.

The disclosure appears on the Aboriginal Affairs website as well as the home page of the Kwikwetlem First Nation.

The First Nation has a registered population of 81 people, of which 35 live on reserve, according to Aboriginal Affairs.

The disclosure of salaries and other financial information began this week as a result of the First Nation Financial Transparency Act, which received Royal Assent in March 2013. Under the act, a First Nation that fails to comply with the reporting requirements could face a court order and the federal government could withhold transfer payments.

Colin Craig of the Canadian Taxpayers Federation, which is reviewing the disclosures as they are posted online, said $914,219 is an “obscenely high amount” that requires an explanation from the First Nation.

The Assembly of First Nations said this week that the average salary for chiefs and councillors in 2010 was about $37,000.

Meanwhile the O’Chiese First Nation in central Alberta has disclosed that the chief and all six councillors are paid above $100,000. Chief Darren Whitford is listed as receiving $164,453 in remuneration and an additional $100,778 in “travel, meetings and other expenses.” The salaries of the six councillors range from $102,261 to $117,654.

Assuming the chief’s salary is tax free, it is the equivalent compensation of someone with a $250,000 off-reserve salary who pays taxes.

The receptionist at the O’Chiese band said no one was available to comment.

According to Aboriginal Affairs, the O’Chiese First Nation has a registered population of 1,270, of which 842 live on reserve. Data from the 2006 census shows the average total income of the 250 individuals with income in the community was $15,844.

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