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More money for MT tribe on hold after audit

By The Associated Press

Story Created: Nov 18, 2009 at 7:27 PM MST

Story Updated: Nov 18, 2009 at 7:27 PM MST

BILLINGS - The leader of a Montana Indian tribe says state agencies are withholding almost $900,000 in grants and stimulus funds after an audit revealed the tribe's lax accounting practices had opened the door to potential financial abuse.

Little Shell Tribe of Chippewa president John Sinclair says a $70,000 economic development grant and $617,000 in federal stimulus money for the tribe were recently put on hold.

That comes after a tobacco use prevention grant for $180,000 was suspended in September - when state auditors first raised questions about how the tribe was spending the money.

The tribe has been given until Nov. 23 to show it has fixed its accounting procedures. A Dec. 1 meeting in Helena is planned between Sinclair, representatives of Gov. Brian Schweitzer and other state officials to discuss the issue.

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