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First Nation probed over loans

New documents show a First Nation on the shores of Lake Manitoba is being investigated over loans and advances paid to its former band council and staff.

Professional auditors from the firm KPMG are also looking into payments made to build off-reserve housing as well as social-assistance payments to senior administrators and the former chief and councillors of the O-Chi-Chak-Ko-Sipi First Nation.

No charges have been laid and none of the allegations have been proven in court.

Documents obtained by The Canadian Press under the Access to Information Act provide an overview of KMPG's audit work.

The documents say the auditors were asked to take a closer look at loans and advances paid to 13 people who were "certain senior administrators, or were members of the council."

The audit covered the period from April 2009 to March 2012.

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