Saskatchewan First Nations Leaders Demand Accountability After FSIN Audit Reveals Millions in Questionable Spending
First Nations leaders in Saskatchewan are calling for significant changes within the Federation of Sovereign Indigenous Nations (FSIN) after a recent audit revealed approximately $34 million in questionable or ineligible expenses. The audit, conducted by KPMG on behalf of Indigenous Services Canada (ISC), has sparked outrage and demands for transparency and accountability from the FSIN leadership.
Key Findings of the KPMG Audit
The audit, covering the period from April 1, 2019, to March 31, 2024, identified numerous instances of questionable spending, including funds intended for COVID-19 relief, travel expenses, and executive compensation increases. A significant portion of the questionable expenses, totaling $23.5 million, was related to COVID-19 funding where complete supporting documentation was not available.
- Questionable Expenses: $30.3 million
- Ineligible Expenses: $3.7 million
- COVID-19 Related Questionable Expenses: $23.5 million
Leaders Voice Concerns and Demand Action
Saskatoon Tribal Council Chief Mark Arcand has been a leading voice in demanding accountability. He expressed embarrassment and concern that the FSIN leadership could allow such spending to occur, especially considering the needs of the First Nations communities. Arcand emphasized the importance of transparency, stating, "This money belongs to the people, to the grassroots people, it's there to make a difference in people's lives." He is calling for emergency meetings to implement the federal organization's recommendations.
Other leaders, including Chief Kelly Wolfe of Muskeg Lake Cree Nation, echoed these concerns. Wolfe highlighted past instances where female leaders within the FSIN raised concerns about financial mismanagement but were allegedly ignored and ostracized. Chief Kirby Constant of James Smith Cree Nation described the audit as "just a start" and emphasized that even the sampled findings are unacceptable.
Specific Allegations and Examples of Misspending
The audit highlighted issues beyond COVID-19 related expenses. Arcand pointed to instances where FSIN policies were allegedly violated, such as the approval of $50,000 for a horse race, despite the organization's sponsorship policy deeming such events ineligible for funding. He also accused FSIN executives of handing out contracts and sponsorships to gain support.
"That's how you gain support, giving out sponsorships, handing out TVs, preying on people's poverty. That's how you gain support," - Saskatoon Tribal Council Chief Mark Arcand.
Wolfe alleged that FSIN executives handed out $12 million in contracts over one year. He also called out the FSIN’s 4th and youngest vice chief, Craig McCallum, urging him to speak up and separate himself from the "old boys club."
Calls for Investigation and Reform
Several leaders are advocating for further action, including a thorough investigation by the RCMP. Robert Merasty, a former FSIN Vice Chief, expressed shame and called for a return to the organization's original vision of protecting the treaty rights of First Nations people. He urged for a "cleaning house" within the FSIN leadership.
Chief Jonathan Pasap of White Bear First Nation emphasized that the issues within the FSIN affect all Saskatchewan First Nations. He said that complete corporate and governance reform is needed, along with more oversight to reinforce the mandate to protect the treaty. Band councillor Desiree Drever from Mistawasis Nehiyawak First Nation called for transparency and accountability from the FSIN board of directors.
FSIN's Silence and Indigenous Services Canada's Response
Despite multiple requests for comment, the FSIN and its chief, Bobby Cameron, have not yet responded to the allegations and audit findings. This silence has been criticized by First Nations leaders, who believe it speaks volumes about the situation.
Indigenous Services Canada has stated that it will take action on the audit's findings and recommendations. In a statement, the ISC said they are carefully considering next steps and will consult with appropriate authorities as required. The ISC has made eight recommendations, including a review of internal policies and procedures. This audit summary and the next steps are top of mind for leaders looking to improve First Nations organizations.
