Interest on account accruing at rate of $1.3 million daily
ROBINSON-HURON—Both the Canada and Ontario governments have indicated that they have completed their requirements regarding the Robinson Huron Treaty (RHT) Settlement Agreement with the transfer of compensation funds.
Soo Today reported last week that the final installment of the $10 billion settlement has been transferred, with $5 billion being received from Ontario March 15 which has been accruing $600,000 in interest each day since. The remaining $5 billion in settlement dollars from Canada was deposited March 25. In total the amount of interest collected will be $1.3 million in interest for every day it is in the RHT Litigation Fund coffers. The total amount of interest earned on the $10 billion settlement will be divided among all 21 First Nations under the treaty, including all those on Manitoulin Island.
“That is what they (governments) indicated just recently,” said Angus Toulouse, of Robinson Huron Treaty Litigation Fund (RHLTF) and Chief of Sagamok Anishnawbek. “There is still some work that has to be done at the community level, and for priorities to be set with conversation in each community on the per capita benefit to each beneficiary and arriving at each community’s own disbursement amounts, for example.”
“There is a lot more due diligence that has to be carried out,” stated Chief Toulouse. “Right now we’re still in conversation at the community level before things move forward (with disbursements).”
“The RHT chiefs were advised about the early transfer of the funds,” a RHTLF release states. “The RHT chiefs designated a bank to receive and safeguard the funds until distribution can take place in accordance with the Compensation Disbursement Agreement. The funds will earn significant interest and will be allocated to the First Nations in accordance with the Compensation Disbursement Agreement.”
“The RHT chiefs discussed a concept to expedite the transfer of the compensation funds to the First Nations. The Disbursement Agreement sets out an allocation formula in accordance with population and beneficiary numbers among the First Nations,” the release continues. “The work relating to the determination of those statistics could take a significant amount of time. An approach that could expedite the transfer of the funds could be to eliminate the beneficiaries and membership distinctions in favour of relying on the membership populations as the means of allocating the funds among the 21 First Nations. The discussion established that this concept only applies to the past compensation agreement, not the future arrangement which has yet to be negotiated or litigated.”
Chief Toulouse noted that “the new annuity amount has not been negotiated with the government as of yet.”
“A related matter that was included in the discussion was the 10 percent war chest component of the Compensation Disbursement Agreement,” the RHLTF release continues. “There was a discussion about reducing the war chest component from 10 percent to five percent and that five percent could be allocated to the 21 First Nations for allocation in accordance with community discussions.”
“The direction from the RHT chiefs resulting from the discussion of these matters was for the 21 First Nations Chiefs and Councils to discuss the concepts and for the appropriate analysis to be done regarding the potential impacts of such proposal on the settlement agreement and among the First Nations.”
It was explained, “The 21 First Nations have been hosting community discussions regarding the compensation funds and will continue to have their discussions with their members on and off-reserve. This process is expected to continue to the point where the First Nations will be in a position to transfer per capita payments in accordance with the results of the community discussions.”
Before the per capita payments begin, the RHTLF noted, “receiving the priority payment will add a new layer of responsibilities to the First Nation councils. First Nations use a trust to hold assets from a settlement, even if they choose to distribute the amount as part of a per capita distribution or payout.”
Before the funds are received, the 21 First Nations will be determining community priorities regarding the receipt of funds, decide who will be entitled to a per capita distribution, establish a trust team which includes a trust lawyer, an accountant and/or bankers and other experts; engage a lawyer to advise the council on trusts; ensure that the beneficiaries bank account has been properly set up to receive funds and the RHTLF has your First Nation’s bank account information; ensure each First Nation finance department has the necessary banking information for its members/citizens; ensure your First Nations membership/citizenship lists are up to date and current; encourage members/citizens to have up-to-date identification and wills if possible; determine the trust model that works best to meet the needs of their community; learn about the legal, financial and tax aspects of receiving the funds; identify and develop community resources, including addressing scammers, mental health support, addictions support, domestic violence supports, Elder abuse supports, financial literacy and more; and having a well-organized communications plan for your First Nation.”
