MAA uses gov't money for pay hikes -- MLA

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Money provided by the province to the MAA to help pay for programs for the average Metis person in Alberta is being drawn off to help cover substantial pay raises for its leading officials, charges the New Democrats Native Affairs critic.

Bob Hawkesworth has also lashed out at the provincial government for letting the Metis Association of Alberta divert provincial money to the operation of the association's monthly newspaper, Native Network News.

The MAA action was "a serious violation" of government policy, he said.

Hawkesworth, the Calgary Mountainview MLA, based his charges on a memo leaked to him. He refused to say how he obtained the undated and unsigned memo, which was written by Dennis Surrendi, an assistant deputy minister in municipal affairs, to deputy minister Archie Grover sometime after Dec. 1, 1989.

Hawkesworth attacked Ken Rostad, the minister responsible for Native affairs, for pleading ignorance on the matter when pressed in the house this week.

"The MAA has imported work to do on behalf of Metis in this province and if the government memo Mr. Rostad doesn't know about is accurate, the ability to do that work for thousands of Metis is being compromised by a few of the organization's leaders," said Hawkesworth in a news release.

"The minister tried for two days in the legislature to say all is well but his words there were clearly contradicted by the memo I have released and it's time he found out what was going on and come clean about it with the rest of us," he said.

In the assembly's question period on Tuesday, Hawkesworth asked Rostad if the MAA financial recovery plan proposed by municipal affairs was "designed to recover public moneys, which are being misspent within that organization or is it some other arrangement designed to perhaps protect the MAA from political fallout?"

The Surrendi memo clearly indicates the MAA disregard a provincial decision that no provincial money be used to publish Native Network News.

"Despite the department's specific rejection of support to Native Network News, the MAA has directed approximately $200,000 of its core support to Native Network News," says the memo.

In the house Rostad was telling a different story to Hawkesworth. "It was not government funds. I challenge the member to put up or butt out.

"The Metis Association has not spent any government funds on their newspaper," said Rostad.

The Surrendi memo notes leading MAA officials were given "substantial" pay raises at the same time as the association faced a $280,000 deficit.

"Despite entering the 1989-90 fiscal year with an operating deficit and with reduced funds from secretary of state and no increase from municipal affairs, the MAA has approved and implemented substantial pay raises for vice-presidents and the president. Salaries now represent a disproportionate percentage of the MAA's administrative budget."

He suggested the government set up a financial recovery committee to develop a financial recovery plan for the MAA, saying he was skeptical the organization could do so itself since 1990 is an election year. "It is likely that political pressures within this organization will discourage officials from complying with a self-imposed recovery plan."

Clint Buehler, MAA executive director and editor of Native Network News, said the memo details are misleading.

Buehler said the MAA deficit was the result of "a shortfall in cash flow," which he blamed on delays in receiving provincial government funding.

"I can assure you our cash flow situation has been resolved and our audit will show a balanced budget - or close to it," he said.

Surrendi's memo said "the MAA has often pointed to delays in framework funding as a cause of financial problems. In fact it (the MAA) plans to use the surplus to reduce its operating deficit."

Maverick MAA official Dan Martel said the provincial government "has lost control of the MAA and doesn't know how to get it back,"

John Middleton, the lawyer for theMetis Self-Determination Society of Alberta, termed the way the MAA ran its association "a joke."

Rostad told the legislature the government has a "good working relationship" with the MAA, which he defended as "a fine, upstanding organization that works with the government to enhance delivery of programs from our government to the Metis of Alberta."

MAA president Larry Desmeules could not be reached for comment on Hawkesworth allegations or the memo.