Smithers Interior News, November 14, 2012

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InteriorNEWS THE

105th Year - Week 46

SMITHERS, B.C.

Wednesday, November 14, 2012 www.interior-news.com

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Black Goose inquiry keeps audit alive

Pow day anyone? Hudson Bay Mountain gears up for a new season.

By Jerome Turner

SPORTS/A11

Smithers/Interior News

diabetic dream Abby Stavast isn’t letting diabetes dampen her dream.

COMMUNITY/A19

sushi maestro Chef Ramy Salmorin is happy to share his skills with Smithers.

OUR TOWN/A21

inside Letters A7 SPORTS A11 Ssscoop A16 COMMUNITY A19 Our Town A21 THREE RIVERS B1 classifieds B4

Remembering heroes Smithers remembered those who gave the ultimate sacrifice in the name of Canada, Sunday at the Remembrance Day celebrations at Veterans Park. Canadian Armed Forces soldier, Todd Konschuh salutes during The Rouse. Dan Mesec photo

The Hazelton RCMP began interviewing individuals involved with the failed, Gitxsan-TreatySociety-funded, Black Goose investment of $1 million. Former GTS board members and relevant Gitxsan community members are going through the process, at times taking hours. Jack Sebastian, former board member and brother to GTS executive director Gordon Sebastian, has voiced opposition to current GTS operations for years. “They thought they were in the clear,” Jack said regarding the assessment for audit conducted on the GTS two months ago. “I was asking questions years ago when I noticed money disappearing,” Jack said. “I’m hoping there will be charges laid this time.” He added if the corruption he alleges continues unchecked it will only get worse. On Oct. 29, 2007 GTS board members received a recommendation stating $1 million of GTS money should be released to Del ga Goka Holdings

Ltd for the purpose of investing in Black Goose Holdings Ltd. Del ga Goka, which means white swan in Gitxsan, was apparently controlled by Elmer Derrick who acted as sole trustee, according to the Deloitte and Touche assessment. Del ga Goka was incorporated on Oct. 25, 2007 and Art Mathews and Jim Angus were listed as directors. Whether or not there was criminal activity or just an unsound business transaction is the focus of the RCMP investigation. Finding criminal activity could lead the RCMP to recommend a forensic audit of GTS finances. The Gitxsan Unity Movement’s blockade in December 2011 was established to force a forensic audit. “We were told the Black Goose investment would turn into $4 million in 8 months,” Jack said. “We have no idea if that happened or not.” The original investment made in 2008 was found to be worthless within a year. Investigations are continuing until the RCMP are satisfied they have all relevant information.

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