“We were unable to obtain third-party confirmation from the receivers of Bridging Finance Inc., a major creditor of the First Nation, which is in receivership. Thus, we were not provided with sufficient and appropriate evidence to support the existence and completeness of demand loan owning by the First Nation,” Baker Tilly wrote in the statement.

Mingzhi Liu, an accounting professor at the University of Manitoba, said a defendant under liquidation can seek solutions to write down debt.

“This case is different. Peguis First Nation unilaterally wrote down the debt without providing sufficient evidence,” Liu said. “That’s why Baker Tilly issued a qualified opinion.”

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