The Canadian Government claims it is owed a $20 million refund from the two-decade old $130 million North Central Hydro Project (NCHP) which connected seven Manitoba First Nations and two northern communities to the provincial power grid. Manitoba Hydro was also tasked with cleaning up diesel-fuel facilities made obsolete because electricity was made available.

A December 2008 Indian and Northern Affairs Canada Forensic Audit revealed that when the project was complete and the deal surrounding the NCHP closed in 2006, Manitoba Hydro allegedly underpaid a refund worth tens of millions, and failed to keep proper records of how money for the multi-million dollar project was spent.

“Hydro made a false, inaccurate or misleading representation that Canada was entitled to a refund of $2,499,720,” say court documents filed on behalf of the Government of Canada.

Hydro has not filed a statement of defence, and the lawsuit contains untested claims not yet proven in court. A spokesperson for Manitoba Hydro says there is a disagreement on the amount of money Hydro owes the province and Hydro will be filing a statement of defence.

The two sides hope to settle out of court.