The Southern Chiefs' Organization has removed Murray Clearsky as its grand chief, amid allegations of misusing funds at a casino and amusement park in the United States.

Sources confirmed to CBC News on Tuesday that Clearsky has been released from his duties as grand chief.

Staff with the organization, which represents 33 chiefs in southern Manitoba, came forward earlier this fall to accuse Clearsky of withdrawing thousands of dollars in cash advances at automatic teller machines in Minnesota.

On Aug. 19, four withdrawals totalling $839.08 were made at Valleyfair, an amusement park in Minnesota. And over two days, Sept. 17 and 18, a number of withdrawals totalling $9,655.25 were made at ATMs in and around Shakopee, Minn.

Clearsky and Micheal Bear, his chief of staff, were suspended with pay pending the outcome of an outside audit.

The decision to remove Clearsky as grand chief was made at a meeting of chiefs in Sagkeeng on Tuesday, according to sources.

The verdict on Bear's status is not known at this time.