After several years of admitted financial mismanagement, the federal government is stepping in to manage the expenses of Peguis First Nation.
The community is close to $20 million in debt.
It has been rocked by scandal for some time, including accusations of expensive trips and exorbitant salaries being paid to local members of government.
"I know the former chief in his last year in office made over $333,000 in salary," says Chief Glenn Hudson.
In the two years since Hudson took office, he says he has capped his salary at $170,000 and kept council members' yearly income at around or below $140,000.
Salaries are not the only problem.
In a 2009 letter to a Royal Bank Aboriginal Banking Manager, Hudson admitted his overspending led to the band's massive debt.
"We have to look at areas of efficiencies including travel… [and] community service," says Hudson. "No longer can people just come and ask for assistance."
Last year, the band received close to $32 million in funding but spent almost $49 million.
The debt load has been steadily increasing from $10 million in 1999 to $20 million in 2010.
The Canadian Taxpayers' Federation is now demanding to know why the Indian and Northern Affairs Department did not step in sooner.
"It's way too long, if you talk to the people in the community and they call our office routinely," says Colin Craig of the Canadian Taxpayers Association. "They've been calling for this issue to be addressed for a long time."
Craig says he's spoken to taxpayers and they're angry and want to see a change in the way funding for First Nations is handled.
"I think we need to move away from the reserve system as a whole, maybe some chiefs and councillors are benefiting, but people on the reserves are suffering," he adds.
Craig says he's received calls from people living on reserves in Manitoba and across Canada who are concerned about the way money for their communities is being spent by their council.
- with a report from CTV's Navjot Heir
