Norway House Sues Consultant Over $30M in Fees After Finding $130M Debt

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boringnews
July 14, 2026 10:26 am

Norway House Cree Nation in Manitoba has filed a legal claim against a financial consulting firm it says improperly expanded its role, leading to about $30 million in professional fees paid over six years. The claim, announced in the new Chief and Council’s first report to members, targets HLL Consulting Inc. and its sole principal, Michael Ly.

The Nation’s June 22, 2026, Chief’s Report says the fees to HLL Consulting ate up roughly 20 percent of all spending during that time, double the 10 percent that’s typical for such a contract. Annual billings shot up from about $473,000 in 2018-19 to more than $12.5 million in 2024-25, a 26-fold jump. When the new council ended the arrangement, the firm handed in a termination claim topping $11.6 million based on the broader role, not its original financial consulting duties.

Chief Season Roulette, who won a May 1, 2026, run-off election with 2,826 votes, says his team found the Nation nearly $130 million in debt when they took office. This included $16.38 million in bank indebtedness and $83.05 million in long-term debt. The legal claim accuses HLL Consulting of conflicts of interest, unauthorized transactions, and expanding its mandate without proper council approval. Former Chief Larson Anderson, who received 1,468 votes in the run-off, was in office when the consulting contract grew.

The new leadership has brought in Baker Tilly Canada, a national accounting firm with experience working with Indigenous communities, to do a forensic audit and help steady the Nation’s finances. A full community update on where the money stands is set for July 31, 2026. The Nation has also promoted James Apetagon to Chief Administrative Officer and named Brent Osborne and Ida Muskego as interim associate directors of finance.

In a separate move, Norway House Cree Nation is suing Manitoba Hydro, the province, and the federal government over the effects of hydro projects on its territory and water regulation.

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