Manitoba First Nation countersues ex-band manager, alleges misappropriation

The Manitoba Law Courts building is pictured in Winnipeg, Man., in this undated image. (CTV News Winnipeg)

A Manitoba First Nation and its chief and councillor are countersuing their former band manager, alleging she misappropriated more than $65,000 in public funds and made defamatory social media posts—including remarks targeting the chief’s skin colour.

The countersuit comes in response to a statement of claim filed last month by May Hapa, who is suing Birdtail Sioux First Nation, Chief Tréchelle Bunn and Councillor Heath Bunn, alleging she was wrongfully terminated as band manager in June 2025.

Hapa’s claim alleges she complied with all policies and maintained satisfactory performance throughout her tenure. She alleges her dismissal came without reasonable notice or pay in lieu, and that her legal funding was improperly revoked in a separate proceeding. She is also seeking damages over defamatory accusations, including allegations that she permitted excessive cash advances and engaged in embezzlement.

In a statement of defence and counterclaim filed April 16, the defendants jointly deny the allegations. They allege Hapa—who worked for the First Nation for nearly two decades and had served as band manager since 2020—was unable to effectively carry out a “great majority” of her duties and misappropriated over $65,000 in public funds.

The counterclaim alleges the misappropriation occurred over an “extended period” and involved issuing advances to certain employees while assuring them the funds would not need to be repaid, diverting money from programs.

The alleged financial misconduct came to light after the First Nation retained an external accounting firm to conduct an internal review and investigation of its finances, the court documents claim. The First Nation is seeking damages of no less than that amount in its counterclaim.

The defendants say statements made about Hapa’s financial conduct—to Birdtail Sioux First Nation members and law authorities—were not defamatory. They allege the statements were made in good faith, with an honest belief in their accuracy, and are subject to qualified privilege.

The filing further alleges Hapa failed to preserve documentation, did not respond to emails, refused direct orders and neglected to prepare reports that should have been completed four to five years earlier.

Alleged defamatory Facebook posts: court filings

Chief Bunn is separately countersuing Hapa for damages, alleging she published multiple defamatory posts on Facebook beginning in the spring of 2025 and continuing through at least that summer.

According to court documents, the posts allegedly claimed Chief Bunn should not be considered a member of Birdtail Sioux First Nation based on her skin colour, and portrayed her as dishonest and unqualified to serve as chief.

“The posts are, in their plain and ordinary meaning, defamatory, untrue, and meant to negatively alter the perception of Chief Tréchelle in the community, and were further designed to diminish her character, reputation, and good standing,” the filing reads.

It claims Chief Bunn has suffered loss of reputation, embarrassment, and public humiliation as a result.

CTV News has reached out to Hapa’s lawyer for comment and is awaiting a response.

None of the claims have been tested in court.