SAGKEENG CENTRE CLOSES

Controversial reserve facility to lay off 90 staff, transfer 15 patients

THE Virginia Fontaine Addictions Foundation - mired in controversy since 70
staff went on a Caribbean cruise last fall - is closing next week.

CEO Ken Courchene informed staff Monday that the treatment centre will
close Feb. 27.

About 90 staff will be laid off and 15 patients moved to other treatment
facilities. The centre is located on Sagkeeng First Nation, about 145
kilometres northeast of Winnipeg.

Meanwhile, an ongoing Free Press investigation has revealed that Ottawa
continued to fund another native health agency in Manitoba despite being
aware more than two years ago of widespread unauthorized spending.

A 1998 Health Canada audit of Anishinaabe Mino-Ayaawin (AMA) found nearly
$100,000 -- half of its spending during the four-month period reviewed --
was not allowed under the federal funding agreement.

Health Canada was unable to say yesterday exactly what action it took
following that audit. (See full story on page A4.)

AMA and the treatment centre at Sagkeeng are both now the subject of
another set of federal audits.

News of the Sagkeeng centre's closure comes only two weeks after it lost a
court challenge that tried to block the federal audit.

Associate Chief Justice Jeffrey Oliphant of Manitoba Court of Queen's Bench
slammed the treatment centre for using public funds in a "fast and loose
manner," ruling that Health Canada has complete authority to audit
treatment centre records.

Ottawa is also suing the centre for at least $5 million. It cut off the
centre's funding on Dec. 1 after management refused to allow auditors to
see records.

Health Minister Allan Rock had demanded the audit when it became public
that 70 treatment centre staff had taken the Caribbean cruise.

The centre had continued to operate using surplus funds.

Manitoba Grand Chief Dennis White Bird's greatest concern is the loss of
treatment facilities in Manitoba.

"I don't want to see any reduction in services. Our first nation people
still suffer from alcohol abuse, drug abuse, chemical abuse and
gas-sniffing," White Bird said.

He added that Health Canada has not accepted enough responsibility for the
Virginia Fontaine centre debacle.

"To me, the responsibility is not well accepted by the government, that
they were responsible for financing the centre," he said.

As for the AMA agency - which was set up to oversee community nursing
stations and pay for non-insured health benefits such as dental and vision
care in seven Interlake first nations - Health Canada says it cannot
explain why the agency has money to invest in capital projects totalling
about $4 million, including a downtown office tower and a $2.3-million
health retreat.

Health Canada is demanding AMA return $1 million it received for mental
health services it didn't deliver.

AMA's three-year, $20-million contract to deliver extended health coverage
expires at the end of next month, and Health Canada has not decided yet
whether to renew it.

Five other Manitoba pilot projects like AMA, which began in 1996, are also
being evaluated by Health Canada, a department spokesman said.

The Virginia Fontaine treatment centre is an impressive building, with a
gymnasium, recreation centre, a security surveillance system, about 40
computers and a $35,000 server.

Some say it would be ideal for an elementary school. Another idea is to
turn it into a hospital.

The addictions foundation, with 76 beds in total, is actually three
facilities. The two facilities in Sagkeeng are an adult alcohol
rehabilitation centre and a girls' solvent abuse treatment centre.

A 20-bed boys' solvent abuse treatment centre is located off-reserve in
Seven Sisters Falls.

Courchene told staff he is thinking of mortgaging the Seven Sisters
building - borrowing against the asset - to raise funds to reopen the
Sagkeeng centre.

The listed owner of the Seven Sisters building when the controversy broke
over the Caribbean cruise was Steve Courchene, former executive assistant
to Indian and Northern Affairs Minister Eric Robinson.