Editor: Dave Perley,   March 5, 2004

    Tobique Casino: Private or Public Funds?

    Everyone agrees that the casino operation has created both fultime and part-time employment opportunities for the
    local population.  According to information from community members, approximately 20 fulltime jobs and an
    additional 50 part-time jobs have been created.  We have also learned that the casino generated approximately 14
    million dollars for the period beginning in April 2003 and ending January 2004.  It is clear that this initiative has been
    successful in bringing in much needed revenue for the Tobique First Nation.  However, the casino operation is
    currently experiencing major difficulties with issues of accountability, management structure and decision-making
    despite the fact that it has been successful in generating revenue and creating employment.

    Community members have expressed concerns regarding ownership and accountability.  It is a well-known fact
    within the community that the managers have adopted the attitude that the casino belongs to them.  They believe
    that the revenue generated from the casino is a private “piggy bank” that they can draw upon for their personal
    use.  They have also taken the position that they do not have to be accountable to the people.  They believe that
    they have a right to make decisions on spending according to their political agendas and personal use without
    following guidelines based on fairness for all members.  They refuse to consult with community members who I
    believe are the rightful owners of the casino.  As owners, we need to ensure that everyone benefits from this
    initiative and that funds are used for community projects, emergencies, youth and Elders.

    Accountability is a major issue with the Tobique casino.  Community members do not receive monthly revenue and
    expenditure reports.  Managers do not follow any guidelines to ensure that decisions are fair to all community
    members.  This is a dangerous situation because of the possibility of abuse by those who control the casino.  
    Mismanagement may occur and managers may be tempted to use funds for political purposes.  Examples of abuse
    may include financing baseball and hockey trips for certain councilors and friends, financing Florida vacations,
    financing summer homes, purchasing building materials for a select few, and other questionable expenditures.

    Considering the fact that the casino has generated 14 million in the past year, it is essential that community
    members receive information that will inform us how this money was spent by the managers.  We need to know who
    received funds from the casino and for what purpose.  We need to know the details of the revenue sharing
    arrangement between the Tobique casino and owners of the video machines.  We need to know the details of all
    expenditures since April1, 2003 to February 29, 2004.  We should also demand that managers will be required to
    submit monthly revenue and expenditure reports as well as an annual audit report for review by community
    members.

    The current management structure needs to be changed because of the presence of conflict of interest within the
    operations of the casino.  I believe that Chief and councilors should not be involved in the day-to-day operations of
    the casino.  They should be removed from the administration of the casino because the decisions they make
    regarding community requests are based on politics rather than verified needs.  All requests are viewed as potential
    votes for the next election and individuals highly connected to management are given favorable treatment and
    therefore receive most of the benefits.

    In addition to removing politicians from the daily operations of the casino, we need to ensure that the new managers
    will be recruited based on competition at the community level.  Tobique has highly qualified individuals who deserve
    an opportunity to compete for these positions.  Furthermore, the new managers should be required to follow strict
    guidelines that will ensure that all requests submitted by community members are treated fairly.  Guidelines will also
    discourage abuse and corruption by managers and the governing body.  Finally, guidelines will inform community
    members which priorities will be targeted for financial assistance.  For example, community members may agree that
    net profits will be spent on the following items:
    ·        25% will go to the Elders
    ·        25% will go to the youth (ages 0 – 17)
    ·        25% will go to community projects, cultural activities
    ·        10% will be used for emergencies
    ·        15% will be set aside for distribution to the membership two weeks before Christmas
    Of course, priorities and guidelines should be developed in consultation with community members.  Chief and
    Council should take steps to hold community meetings that will encourage participation and input by all members.

    It is my opinion that the Tobique casino is owned by all members of the Tobique First Nation.  Each and every
    member is a shareholder and as shareholders we have a right to information on revenues and expenditures,
    agreements made with suppliers of video machines, and staffing decisions made by management.  We also have a
    right to demand annual shareholder meetings that will allow us to ask questions regarding casino operations.  In
    addition, we have a right to demand that each community member benefits from the revenues.  Finally, we have a
    right to insist that managers who are abusing their positions be removed from the casino operations.

    It is also my opinion that all community members (shareholders) should meet as soon as possible regarding the
    casino and discuss the following basic questions: should we allow the abuse of casino funds to continue?; what
    guidelines should be adopted by the casino that will put an immediate stop to the abuse and introduce
    accountability to community members?; what are the options available to us to force changes that will lead to
    benefits for all members?;  Remember, you are a shareholder and you have a right to a share of revenues
    generated by the casino.  It is not a private “piggy bank” for a select few!
Copyright 2005 NEWTFN