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A career fair is held inside the Regina campus of the First Nations University of Canada on Jan. 28, 2010.Troy Fleece

The Saskatchewan government is cutting funding to First Nations University and will "close a chapter" on the country's only aboriginal-run university, set up to give native groups control of their own education.

Advanced Education Minister Rob Norris said the province had "lost confidence in the direction of the institution" after allegations against its senior administration by a former financial officer. Coming in the wake of a string of problems at the Regina school, Mr. Norris said the newest accusations of financial improprieties were the "tipping point, that compelled the government to take action.

"It was just simply time," he said of the decision made Wednesday by cabinet to withdraw $5.2-million in funding from the university as of April 1. "It's a close of a chapter."

While the province cannot shut down the university, Saskatchewan's actions place the school's existence in jeopardy. Provincial funds account for about 20 per cent of the school's budget. The federal government is expected to contribute $7.3-million this year, but is likely to follow the province's lead, a spokesman for the Department of Indian and Northern Affairs said last week.

Mr. Norris said his government will work with the University of Regina, which shares a campus with First Nations University and grants its degrees, to ensure students can complete their year and their degrees.

Clarence Bellegarde, chairman of the university's board of governors, recently asked for patience while the school works through its problems.

The current crisis came to the fore last week with allegations of financial mismanagement by the school's former chief financial officer. Murray Westerlund, who left the university in December, has filed a wrongful dismissal suit that claims senior administrators and staff received thousands of dollars in payments for unused leave, contrary to school policy. In a report to the school's audit committee before his departure, Mr. Westerlund also drew attention to questionable expense claims for trips to Las Vegas, Montreal and Hawaii.

Mr. Norris said the latest allegations underlined that the university is "fundamentally flawed," and expressed frustration that the ongoing troubles were distracting attention from other accomplishments in native education.

Cadmus Delorme, a spokesman for the student association, said he is disappointed native leaders, who appoint most of the school's board members, did not take action after provincial warnings last week. "We told them they were not bluffing. They didn't believe us," he said. "We have to show accountability as first nations people."

A second-year business student, Mr. Delorme said he still hopes the university can continue. "If not, I will be a very proud University of Regina student," he said.

With a report from The Canadian Press

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