CEO leaves Native Women's Association of Canada engulfed in turmoil

The most prominent Indigenous women's organization in Canada announced on Friday the departure of its chief executive officer amid internal turmoil.

In an email viewed by CBC News, Carol McBride, president of the Native Women's Association of Canada (NWAC), informed staff that Lynne Groulx is no longer employed as the organization's CEO.

"NWAC continues to be committed to the grassroots Indigenous women, girls, Two-Spirit, transgender and gender-diverse people we serve," McBride wrote in the staff email. "I look forward to working with you as we enter a new chapter."

NWAC's board later announced Groulx's departure on the organization's website.

The development came after a CBC News investigation reported on the turmoil rocking the national advocacy organization founded 50 years ago to enhance the well-being of First Nations, Inuit and Métis women.

WATCH | Troubles face Indigenous women's advocacy organization: 

CBC News reported on an ongoing federal financial audit of NWAC, where preliminary evidence found ineligible expenses.

Groulx said NWAC provided all backup information to support its expenses and blamed the federal government for cutting program funding, which NWAC said led to the layoff of 78 employees.

The CEO's exit also follows union-busting allegations made in Ontario and Quebec labour board complaints against the organization, which NWAC denies.

NWAC president wants organization to return to mandate

In a statement, NWAC said Groulx is leaving to head a new venture focused on social business and Indigenous prosperity, which McBride later confirmed does not involve the organization.

"Leaving the role you love is always difficult," Groulx said in the statement.

"It has been an honour and incredible journey leading NWAC and contributing to its success. I am immensely proud of what we have accomplished together and am confident in NWAC's future."

Since joining NWAC in 2016, Groulx's focus has been advancing the rights of Indigenous women and gender-diverse people, the organization said.

Groulx also oversaw NWAC's new social projects, including a café, gift shop and plans for a boutique hotel.

Critics accused NWAC of straying from its non-profit mandate, but Groulx said the business endeavours were meant to generate revenues to invest into programming and community.

Previously, Groulx worked for the Canadian Human Rights Commission.

McBride told staff Nicole Richmond will serve as interim CEO. Richmond is a member of the Biigtigong Nishnaabeg, an Ojibway First Nation on the northern shore of Lake Superior in Ontario.

NWAC said its board of directors will conduct a nationwide search for a new CEO to lead the organization into the next phase of its growth and development.

McBride told CBC News she's looking forward to NWAC's future and is excited to work alongside its new CEO.

"I know we're going to make some positive changes," McBride told CBC News.

"I think we're going to really, really concentrate on getting back to what NWAC was supposed to be all about. It's the advocacy and restructuring it in a way that answers to those needs."