Dene Nation accuses N.W.T. government of withholding $1M of its federal money

TheDene National Chief says his organization is months behind in rent and bill payments because the Northwest Territories governmentis withholding more than $1million money meant to go to the Dene Nation from Health Canada.

Bill Erasmus made the statementin a news conference late Thursday afternoon in Yellowknife.

"This affects us on a daily basis," he said. "We're behind in rent, we're behind in a whole number of areas.

"We need the businesses to know we want to pay them but the territorial government is withholding our funding. A million dollars is alot of money."

He says the Dene Nation is entitled to $165,000a year from the federal government as part of the national health framework agreement.

Since the 1970s, he says, that money has been funnelled to the Dene Nation through the territorial government. But the moneystopped coming eightyears ago.

"These are funds that come from the federal government. These are Indian monies. They come from treasury board funds that are earmarked directly for us and they're supposed to flow to us.

"They're in a legal area where they have no legal standing or jurisdictionso we're looking at the next steps."

Erasmus says the money,which is used to fund the Dene Nation's health care department, is being withheld because of a dispute over the N.W.T. payroll tax.

He says he has asked Health Canada to force the territorial government to pay up but in a letter, the agency says the issue is between the GNWT and the Dene Nation.

Erasmus says he has not ruled out legal action if the money isn't released.

CBC has requested comment from the territorial andfederal governments.