A Manitoba First Nation has reclaimed a gas station in a longstanding dispute surrounding Red Sun Smoke Shop and Gas Bar on Highway 6, near the Perimeter.
Last night, the new chief of Roseau River First Nation, Ken Henry, evicted Red Sun staff under RCMP supervision.
The band accuses managers of operating the community-funded business for personal gain.
“This other regime was just in it for themselves,” said Henry.
Managers included Kathy Nelson, daughter of former Roseau River chief Terry Nelson, and David Doer, brother of former premier Gary Doer. Terry Nelson is now grand chief of the Southern Chiefs' Organization.
He disputes Henry's claims.
"I left the First Nation in good financial shape," wrote Nelson.
Chief Ken Henry said "the fight isn't over" but added Roseau River First Nation members are elated by the step undertaken Wednesday.
He said $2.1 million from the band trust was used to develop Highway 6 and Red Sun.
Terry Nelson refutes that, with managers saying that money went into developing the land and not the business.
"The statement the gas station was built with (a band trust) investment is a lie," wrote Nelson in an email.
David Doer said he invested the money for the gas bar.
Henry, meanwhile, said no tobacco tax receipts were issued from Red Sun, which he said legally belong to the band.
"We also left them ability to access $1.2 million per year in Tobacco Tax Rebates from the Red Gas Bar and the Gas Bar on (reserve). When they came in, they refused to honor the 20 year investment agreement signed with Kathy Nelson, David Doer and Larry Penner," said Nelson.
Chief Henry said pressure from his people led him to act.
Band member Cheryl James said the principle of business on the land is to benefit the band.
“Rebates were supposed to be coming to our community and the community was supposed to be benefitting from them in various ways,” said James.
Chief Henry said Terry Nelson showed up Wednesday night, minutes after the eviction.
Henry said the managers and staff were well aware this was coming. Nobody will lose jobs unless they don't want up work there anymore, he said.
Nelson, however, believes there will be job losses.
Henry said the band had already started legal proceedings about a year ago and is prepared to move forward.
Nelson, meanwhile, said the dispute will have a further impact.
"The action by Chief Ken Henry will send a chill on investment into First Nations," wrote Nelson.
"I convinced the investors to invest. As chief, I knew that politics and business by committee destroys First Nations businesses. I wanted private investors to run the businesses," said Nelson.
Chief Henry said investors will be compensated.
Roseau River First Nation videotaped the takeover of the shop Wednesday night to show it was done legally, in an orderly fashion and inventory is accounted for, said Henry.
David Doer is filing an injunction to continue operations at Red Sun while the courts work out a solution. The matter will be heard in court next week.
- with a report from Alesia Fieldberg
