STRONG IMMEDIATE ACTION BY SLGA ON SIGA AUDIT

Released on November 15, 2000

The Saskatchewan Liquor and Gaming Authority (SLGA) today took strong action to

make fundamental, wide-ranging changes at the Saskatchewan Indian Gaming

Authority (SIGA).



"The special audit of SIGA has been lengthy and thorough," Doreen Hamilton,

Minister Responsible for the Saskatchewan Liquor and Gaming Authority (SLGA)

said. "The audit has determined that the problems at SIGA were at the top,

with the SIGA board and senior management. Today, I can confirm that

mismanagement at SIGA has stopped. The strong, immediate actions taken today

will ensure that SIGA's mismanagement of public funds will not and can not

occur again."



SLGA is independently taking a number of actions today, including:



- starting the process of recovering all public money misdirected through the

mismanagement of SIGA. It has been determined at this point that the General

Revenue Fund and Associated Entities Fund are owed their share of $1.7

million, which is $1,085,000. All of this money will be recovered from the

First Nations Fund over the next two years. Further amounts are under review;

- referring the detailed findings of the special audit to Saskatchewan Justice

for its review. Any decision as to further action will be made solely by

Saskatchewan Justice;

- accepting the Provincial Auditor's report in its entirety, including all 16

recommendations;

- removing the gaming registrations of all SIGA board members who sat on the

board during the period of April 1, 1999 to June 16, 2000, effectively ending

their board membership;

- strengthening and restructuring the SIGA board, by requiring three SLGA-

appointed representatives and four representatives from the Federation of

Saskatchewan Indian Nations (FSIN) for a total of seven members; board

members will be required to meet education and training requirements

including: educational qualifications; gaming experience; recent training and

knowledge of gaming regulation and the gaming industry in Saskatchewan;

- requiring all individuals who sit as SIGA board members to be registered by

SLGA as gaming employees before taking positions on the board;

- immediately introducing financial and corporate policies at SIGA to prevent

mismanagement of resources; and

- requiring SIGA to be audited by the Provincial Auditor and requiring SIGA to

publish an annual report which includes its financial statements and a payee

list, which SLGA will table in the Legislative Assembly.



A full list of actions taken by SLGA is attached.



The Acting Provincial Auditor released his special report into the financial

operations of SIGA today. The audit was launched immediately following the

discovery of unauthorized use of funds by SIGA's CEO, and was a co-operative

effort involving the Provincial Auditor's Office, SLGA auditors and two

independent auditing firms. In his report, the Auditor makes reference to

minutes of the SIGA board. SLGA has issued a report in response to the

Auditor's comments. A copy of the report is also attached.



"In recent months, SIGA has made some positive moves to re-establish proper

management of public money," Hamilton said. "The Provincial Auditor's

involvement and the new board structure are transitional strategies which will

continue to build the capacity of SIGA to properly manage public funds and

ensure the viability of First Nations casinos. This, in turn, will ensure the

continued viability of the First Nations Fund.



"First Nations casinos have provided many positive benefits to Saskatchewan,

including more than 1,100 jobs, economic development for First Nations and

community benefits. Full compliance with the actions outlined today gives me

confidence that First Nations casinos will continue to play a vital role in

Saskatchewan's economy."



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For more information, contact:



Lisa Thomson

Liquor and Gaming Authority

Regina

Phone: (306) 787-1721



Note: The Provincial Auditor's report is available on the Internet at

www.auditor.sk.ca