A Northwest Territories Supreme Court justice has ordered that Lutsel K’e Dene First Nation companies be put in the care of a receiver-manager as the First Nation accuses the head of its business arm of misappropriating millions of dollars through self-dealing.
The Lutsel K’e Dene First Nation has approximately 800 members and about 350 people are estimated to live in the remote community on the East Arm of Great Slave Lake. They further allege three companies – Northern Consulting Group Inc., Equipment North Inc., and Dene Aurora Environmental Technologies Inc. – are “alter-egos” of Barlas and his wife. They allege that these companies perform no independent work and have been used to divert and hold funds and assets that rightfully belong to the First Nation.
“I have never taken funds which belong to the community, I have never taken steps to take over control of the corporations,” he wrote. An affidavit from Angela Bigg, president and chief executive officer of Diavik Diamond Mines Inc., indicates that a total of $13.5 million was due to Denesoline-related entities by the end of April and further invoices totalling $6 million are expected in the coming weeks.