Band’s ex-finance chief had money problems

Kennedy declared bankruptcy in 1996

OTTAWA — Attawapiskat Chief Theresa Spence’s romantic partner — once in charge of the books at the troubled northern Ontario reserve — has had his own money problems in the past.

Public records show Clayton Kennedy declared bankruptcy five years before he became the band’s money man. He declared debts of $24,380 and assets of $2,403 in his September 1996 bankruptcy filing.

Kennedy’s money problems come to light as Attawapiskat and Spence face questions over a scathing audit of the band’s books that found a missing paper trail for millions of dollars between 2005 and 2011.

Part of the period covered by the Deloitte audit overlaps with Kennedy’s second tenure as the band’s co-manager.

Between 2001 and 2004, Kennedy was the band’s director of finance, co-manager and band manager. He returned as the band’s co-manager and director of finance in July 2010 before leaving the job last summer.

Kennedy refused to speak about the bankruptcy when contacted by the Canadian Press.

A one-page summary available through the website of the Office of the Superintendent of Bankruptcy Canada provides no further details about the nature of Kennedy’s financial issues.

The bankruptcy office says Kennedy’s paper file was destroyed last October. The office keeps hard copies of bankruptcy records only for a limited time.

Kennedy defended the band’s accounting practices in an interview this week with the Aboriginal Peoples Television Network (APTN).

“If everyone is so concerned about the lack of documentation, then fine, come back, start con- tacting the suppliers, go through the banks, get into it in a little more detail because I don’t think you’ll find any misappropriation of funds,” he told the network.

Kennedy completed four of the five necessary levels of training to be a certified general accountant between 1973 and 1979, according to an affidavit he swore after Spence declared a state of emergency over a housing shortage in Attawapiskat.

Neither CGA Canada nor its provincial affiliates in Ontario and Manitoba — professional bodies that grant the CGA designation — could find any record of Kennedy taking courses to become a certified general accountant.

“As far as our records show, there is no record of this individual as a member, a member in good standing, a certified general accountant — whichever you want to phrase it — or as a student,” said Amy Mulhern, a spokewoman for the Ontario organization.

“That could also be that records dating back 40 years are pretty hard

“As far as our records, show, there is no record of (Kennedy).”

CGA ONTARIO’S AMY MULHERN

to find, if they haven’t already been shredded or destroyed at this point.”

He says he has worked for several other First Nations in finance, project management and administration since 2000.

Documents show Kennedy incorporated a business called Moo Shum Enterprises in October 2003 — roughly two years after he first started working in Attawapiskat.

In his affidavit, Kennedy said the company provides “expertise and advice primarily in the areas of finance and management.”

The contract between Kennedy’s company and the band shows he earned $850 a day. He told APTN that is well below the going rate.