BC Metis president Bruce Dumont, pictured at the Metis Skills and Training Centre in Abbotsford , Jan. 13, 2010.Brett Beadle for The Globe and Mail
It promised to be the first real economic development opportunity for the Métis people in B.C.
But two years later, a project to buy an old school and convert it to a profitable job-training centre and catering business has turned into a huge splash of red ink on the books of Métis Nation British Columbia.
MNBC president Bruce Dumont says the organization is putting together a deficit recovery plan with the help of the federal government. Cleaning up the books could take three to five years, he said. However, some Métis say the organization is heading toward bankruptcy.s
The project began with an offer that was hard to refuse.
The B.C. government made arrangements for MNBC to acquire the former Simpson Traditional Middle School in Abbotsford for $2.2-million. The school district had been trying to sell the 25,000 square foot building on a 13.5-acre property for $4.8-million.
"Well, what would you do?" Mr. Dumont said in an interview. "How could we turn it down? … We would have equity of $2.6-million before we did anything."
The organization, which relies almost entirely on government financing, took out a mortgage to cover the purchase and an $800,000 line of credit to fix up some of the rougher spots in the new place.
But then the dream soured. Ottawa did not come through with a $3.5-million stimulus grant, even though the planned upgrade of the building was shovel-ready. "If the stimulus came through, we would have been in pretty good shape," Mr. Dumont said.
The organization also began running up a sizeable deficit in its annual operating budget. Ottawa cut financing for the group, even though in previous years it had provided funds and encouragement to develop an administration. "Ottawa stopped supporting the model of self-governance that they helped develop," Mr. Dumont said.
The mounting financial difficulties have left the group, which represents approximately 6,000 Métis in the province, with a deficit of $1.3-million on a budget of about $12-million this year, an accumulated deficit of $1.7-million.
As well, property taxes and the property transfer tax on the school remain unpaid. Penalties for not paying keep piling up. Mortgage payments have been deferred.
Keith Henry, MNBC chief executive officer from 2003 to 2008 and spokesperson for the Coalition of Concerned Métis Citizens, says the MNBC will be unable to pay off its debts for many years. The coalition, which says it has the support of about 200 people, has launched a campaign within the Métis community to hold MNBC officials accountable for the operations and finances of the organization.
The MNBC is a governing body for Métis people that has a mandate to provide social and economic programs and services, Mr. Henry said in an interview. "That is why they are funded through various government departments, to address the gap in education or health care or employment and training," he said.
But he questioned why the group bought the school. The leaders took steps to generate money but it backfired, he said. "Paying that back may not happen in our lifetime. It is a very serious situation," Mr. Henry said. The organization is "on the brink of bankruptcy," he added.
Daryl Piper, a community cultural co-ordinator with the Vancouver Métis Cultural Society and a coalition member, said he was concerned that money would not be available for MNBC's community programs and services.
"They made so many promises about what they would do with that school," Mr. Piper said. "But I don't know if they have the capacity to look after the finances. It just continually gets worse and the debt continues to grow."
The communications staff at Department of Human Resources and Skills Development declined to arrange an interview with government officials involved with the MNBC. An e-mail from the department stated that the federal government has not cut back funding to Métis administrations across the country. Also, federal audits have not indicated that MNBC is preparing to declare bankruptcy, the department e-mail stated.
A B.C. government spokesman who asked to not be identified said the province did not put any money into the school. However, it provided funds for a training-for-employment program at the school.
Meanwhile, spokespersons for the Métis National Council and Métis organizations in Ontario and Manitoba said they were not aware of cutbacks in government support for governance of Métis groups. Saskatchewan and Alberta groups did not respond to requests for interviews.
Mr. Dumont dismissed the suggestion of bankruptcy. A financial plan will be presented to the membership at the annual meeting in late February, he said.
"It's a lot of money for the community," he said, adding that he was more concerned about the $1.7-million accumulated deficit than debt related to the school, which retains its value.
He attributed the problem to the recent economic downturn, which led to federal and provincial government deficits and cutbacks in programs. "The economic downturn in the last two or three years has caught up with us," he said. Taxes on the school remain unpaid because MNBC has appealed them, he said.
"We're hurting," Mr. Dumont said. But the MNBC will persevere, as the Métis people have always done, he added.