Westbank First Nation Chief Christopher Derickson.

Westbank First Nation is considering its legal options after a band employee sold lands in Peachland for far less than its appraised value.

In a bulletin published March 2, WFN council said the property was sold by a staff member without the proper authorization from council and it was based on a 2009 land appraisal.

“The value of the property at the time of sale is potentially significantly higher,” they said.

Council is seeking to reacquire the Peachland property and has filed a notice of civil claim against the purchaser of the Peachland property, according to the bulletin. 

In 2019, during an in-camera meeting, WFN council authorized the director of intergovernmental affairs, Raf De Guevara, to sell the property for $1.5 million and engage with Romspen Investment Corporation but requests were made by Chief Christopher Derickson for an updated appraisal. In 2018 and 2019, staff also requested an updated appraisal of the property but none was ever provided, according to a review conducted by First Nations Justice Marion Buller.

Raf De Guevara.

Image Credit: FILE PHOTO

The property was sold in March 2021 for $1.5 million but B.C. Assessment said the property was worth more than $5 million, according to the review.

On July 26, 2021, WFN members raised concerns about the sale price and process and filed a petition to raised questions. Council passed a resolution to conduct an independent third-party review of the sale.

Because the lands are considered “fee simple lands,” no current policies are applicable to it and there are no clear rules when a council resolution is required. De Guevara signed documents on behalf of the WFN without a council resolution or discussion, Buller wrote in her review.

But there is also no record in meeting minutes that council asked for updates on the state of the Peachland property, she wrote, aside from a 2009 staff report that said the property was worth $1.5 million.

There were also several times in camera meetings were not properly conducted by council, she wrote, as meetings were called without reasons or discussions which goes against WFN policies. Council and membership meeting minutes are also incomplete, making it difficult for members to follow council decisions and resolutions.

No updated appraisal was ever obtained for the Peachland property and in 2018 there was evidence to suggest De Guevara knew the property was worth $3.8 million. Even so, De Guevara was only authorized to engage with Romspen Investment Corporation, Buller wrote.

Another WFN staffer, Kevin Kingston, witnessed and notarized De Guevara’s signature on the property transfer documents. The incoming CAO was not told of the pending sale and questions to De Guevara went unanswered but past and current CAOs did not enforce staff reporting, Buller said.

Buller made 16 recommendations and noted council should provide members with monthly updates on the implementation of the recommendations.

She recommended WFN establish policies so transactions similar to the Peachland land should be approved by members beforehand. The property should also be assessed by three different real estate appraisal firms and should be disclosed to council and provided to members. The WFN should also establish lands concerning “fee simple” lands and council meetings should be recorded by live video and accessed by members.

She also recommended a further investigation to determine whether there is a civil or criminal liability to De Guevara and for a further investigation to determine if council is liable for financial loss arising from the sale of the property.

To contact a reporter for this story, email Carli Berry or call 250-864-7494 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above. 

News from © iNFOnews, 2022