Former FNUniv CFO Murray Westerlund files lawsuit claiming wrongful dismissal

SASKATOON — A lawsuit filed by the former chief financial officer of First Nations University of Canada (FNUniv) alleges he was marginalized and then fired in December for penning documents which detailed violations by university officials.

The documents, sent to FNUniv's audit committee in November by then-CFO Murray Westerlund and obtained Friday by The StarPhoenix, allege some FNUniv administrators and staff have been paid out for hundreds of thousands of dollars in lieu of annual leave, contrary to university policy. There are concerns over trips to Montreal, Las Vegas and Hawaii. The documents detail alleged misuse of funds and inappropriate expense claims.

Westerlund filed the lawsuit against FNUniv Dec. 17, claiming wrongful dismissal. The university has made a request for more information, and has yet to file a statement of defence.

In an interview Friday, FNUniv board chair Chief Clarence Bellegarde said they take the allegations seriously and have appointed outside auditors to look into things. Bellegarde confirmed the FNUniv audit committee received the documents from Westerlund late last year, but denied Westerlund's contract was terminated as a result. An outside auditing firm is investigating the allegations, and is expected to report back to the board by early-March, Bellegarde said.

"The university takes any allegations of financial impropriety seriously," Bellegarde said.

This is the latest controversy to envelop FNUniv in recent years. FNUniv has been under fire since 2004 to overhaul its governance structure, but is yet to act. From its own commissions to various levels of government which help fund the university, all have recommended a smaller, less political board, as well as other changes.

Enrollment has declined over the past few years. It is currently under censure by the Canadian Association of University Teachers. And last summer, Indian and Northern Affairs Canada, as well as the provincial government, decided to withhold more than $2 million in funding until they saw progress on reforms. Some of the money has been released, but at last count, more than $1-million is still being held back from FNUniv.

In his first interview on the subject, Westerlund said Friday that he was let go for submitting the documents to the audit committee. At the time, FNUniv President Charles Pratt said Westerlund's departure was a "mutual" decision.

"That's hilarious. I was fired because of the contents of those memos," Westerlund said.

Westerlund said he doesn't regret going over the heads of Pratt and other senior administrators at FNUniv.

"It's what I had to do. They wouldn't listen to me," Westerlund said.

"I believe what I did was required of me as a chartered accountant."

In the lawsuit, Westerlund states he gave an advance copy of one of the detailed memos in early November to Guy Lonechild, Chief of the Federation of Saskatchewan Indian Nations. Lonechild "sounded concerned" and told Westerlund to do what he thought best, Westerlund said. Lonechild was en route to Europe Friday and was not available for comment, according to an FSIN official.

The suit alleges Westerlund lost income as a result of the termination, but also suffered a loss to his reputation in his professionand in the community.

Bellegarde said no changes have been made. FNUniv's board will evaluate the need to make changes after seeing the auditor's report, he said. He said the allegations of a former employee might be taken "with a grain of salt," even though Westerlund was the CFO at the time he sent the documents to the audit committee.

Bellegarde said he briefed Lonechild about the documents, but would not say whether Lonechild was satisfied with his plan.

"We're always concerned about allegations," Bellegarde said.

Canwest News Service