The former band council of a small Mohawk community near Montreal mismanaged millions of government dollars policing the community, alleges a confidential federal report obtained by Radio Canada/CBC News.

The federal and Quebec governments spent nearly $34 million over 2½ years to police Kanesatake, which has fewer than 1,300 residents, according to a joint investigation by the CBC's English and French language networks.

James Gabriel, while he was grand chief of the Kanesatake Mohawk community, formed a second police force, alleging that organized crime was too closely connected to the original.
(CBC)

A preliminary report from Public Security and Emergency Preparedness Canada (PSEPC) alleges a misuse of government funds given to former Kanesatake Grand Chief James Gabriel in January 2004 to recruit 67 officers to form a new police force.

"Financial management was not exercised in a prudent, transparent and efficient manner," the report says.

Gabriel had warned that organized crime was taking control of his community while the Kanesatake Mohawk police force turned a blind eye. He said he needed to set up his own police force and clean out the existing Kanesatake police.

Gabriel formed the second police force and raided the Kanesatake police station, but it ended in failure. Gabriel's house was burned down and he was forced out of Kanesatake.

After that, he and his men played a very limited role in policing the community. But according to the PSEPC report, the federal and provincial governments still paid Gabriel and his officers.

Wages doubled in 4 months

The costs for Gabriel's special police force alone were $5.5 million.

The report alleges that some individuals claimed their pay twice, including overtime.

The report also alleges that hourly wages for police officers almost doubled from February 2004 to June 2004.

CBC News has also learned that Gabriel and his men lived at a Hilton Hotel for more than a year, where they ran up close to $2 million in room and restaurant charges, paid for by the federal and provincial governments.

Bought equipment 'not ordinarily' used by police

According to the federal report, the former police chief was paid close to $200,000 in an 11-month period.

The report also questions equipment bought by Gabriel and his force — equipment it says is "not ordinarily used by police forces."

CBC/Radio Canada has learned they bought high-calibre assault rifles, more than 25,000 rounds of ammunition, silencers and several SUVs.

Ottawa signed off on expenses: Gabriel

But Gabriel dismissed the preliminary report and denied any wrongdoing.

He said Ottawa and Quebec signed off on every expense. Gabrial insisted it was all done by the book and out in the open.

"Every invoice … everything purchased by the Mohawk Police was submitted to Public Safety and Emergency Preparedness Canada," Gabriel told the CBC.