Court Asks For Documents On Reserve Loan Contract

Monday, August 30, 2010 at 13:34

There still seems to be bad blood over how a loan program on reserve was awarded to five companies across Canada.

It was just two years ago that Indian Affairs announced the creation of the Loan Loss Reserve Initiative.

The program essentially gives the five companies some security should the money they loan on-reserve businesses not be repaid.

However, some groups have complained over how the five companies were awarded the contract.

One of them, Tribal Wi-Chi-Way-Win Capital Corporation, said today that the federal government has been ordered to produce documents proving First Nations were properly consulted about the move.

Gord McIntosh is a paid lobbyist for TWCC.

He says the group he represents has nothing against the five companies that got the contract — they just can’t see why they’re not included.

Two of the companies currently using the loan loss reserve program are the First Nations Bank of Canada and the Assiniboine Credit Union.

No one from Indian Affairs was immediately available for comment.