APTN National News
OTTAWA–The subsidiary of a Manitoba chiefs organization currently under a forensic investigation has been awarded a Health Canada contract to distribute prescription medicine.
The federal Public Works department awarded the $328, 750 contract, which includes provisions for two one-year options, to Muskehki Distributors Inc. Muskehki is majority owned by Manitoba Keewatinow Okimakanak Inc. (MKO) and North West Company in a 60-40 partnership. The windfall from the contract could hit the millions of dollars as a result of profits from fees from prescription and over the counter medication along with sales of medical supplies and equipment.
Public Works said Muskehki beat out Grand Medicine Health Services for the contract. Public Works awarded the contract on behalf of Health Canada on Jan. 21,
When asked if the current forensic audit faced by MKO impacted Muskehki’s winning bid, Public Works said the contract was awarded “in accordance with the evaluation criteria specified in the request for proposals.”
Aboriginal Affairs said in a statement that MKO was still under a “forensic investigation” triggered by a complaint against the organization which represents 30 Manitoba communities that rate among the poorest in the country.
The forensic audit, conducted by KPMG, is probing MKO’s use of federal training dollars. Auditors have so far uncovered that $1.9 million from a federal training program never made it to MKO’s member communities. The money is supposed to be used to provide training to students looking upgrade their education and find employment.
MKO Grand Chief David Harper has faced criticism from member chiefs over the use of MKO funds for personal expenses. Two communities have already quit the organization over its financial health.
Harper has said he’s done nothing wrong.
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