Saskatchewan native leaders hand over financial control of troubled school

SASKATOON - Saskatchewan aboriginal leaders say they have agreed to hand over financial control of the troubled First Nations University of Canada to the University of Regina.

Chief Guy Lonechild of the Federation of Saskatchewan Indian Nations said Tuesday that the decision could prompt Ottawa to restore some federal funding to the school.

Last month the federal and Saskatchewan governments cut $12.5 million in annual grants to First Nations University.

The school faces allegations of financial mismanagement and one of its former vice-presidents has been charged with fraud.

Lonechild says he is heading to Ottawa later this week for a meeting with Indian and Northern Affairs Minister Chuck Strahl over the future of the university.

A consultants' report released last month recommended the school should become openly financially accountable and be run by people who are not in a conflict of interest.

Saskatchewan Advanced Education Minister Rob Norris said the agreement is good news.

"It's an important step forward. I think our language here is very important and that is, we have said and remain committed that there will be no renewal of funding for First Nations University.

"That being said, we've said that with a partnership the partner could manage that money and oversee the operations. I think this is a significant step forward in that direction."