A lawsuit between Alexander First Nation and one of its councillors has been resolved with the councillor disposing of his shares in a contracting company.
A document filed May 17, 2016, in Federal Court shows Coun. Allan Paul has divested his holdings in Pisim Contracting and swore an oath of office May 16.
Those were terms Paul and the First Nation agreed to May 4 to settle a lawsuit that ultimately saw both Paul and Chief Kurt Burnstick suspended from their positions and reinstated.
The legal trouble began March 11, when Burnstick and councillors Marty Arcand, Edwin Paul and Audra Arcand suspended Allan Paul from his position. He applied for a judicial review, and a judge reinstated him on an interim basis April 15, before he and councillors Marty Arcand, Craig Yellowdirt and Armand Arcand suspended Burnstick on April 26.
The settlement sees the motions suspending both Paul and Burnstick rescinded, and indicates Meyers Norris Penny will complete a forensic audit of the First Nation’s finances.
At issue was whether Paul’s role in Pisim put him in a conflict of interest with his role as councillor. Pisim was apparently involved in a contract to build a road for Shell, as was another company owned by the First Nation.
In an email contained in court filings, Paul refers to the “Alexander Road Project” and indicates the contract was for building 1,600 metres of road, and would mean $360,000 paid to Pisim and another company. He suggests there may be problems with the project, regardless, and that it may be behind schedule.
