The chief of the Federation of Sovereign Indigenous Nations (FSIN) says he believes his organization followed appropriate financial procedures and is willing to pursue legal action after being asked by the federal government to repay millions of dollars in spending.
Indigenous Services Canada (ISC) sent a letter dated March 12 to Bobby Cameron and FSIN CEO Martin Paul detailing lines of ineligible and unsupported expenses totalling $27.6 million between April 2019 and March 2024.
The letter is in response to the findings of a forensic audit conducted by KPMG that reviewed the FSIN’s use of federal funding to assess compliance with terms and conditions and accountability standards.
Findings from this audit were released by the ISC last fall, noting $34 million in questionable transactions.
“We fully believe that we don’t have to repay a dime, so that’s what we believe,” Cameron said at a news conference on Monday.
In a statement to Global News, ISC confirmed it sent the letter to FSIN, adding that it has processes in place to ensure public funds are managed in accordance with funding agreements.
“Indigenous Peoples, and all people in Canada, deserve accountability for the use of public funds,” the statement said.
Following an audit, the ISC said it communicates its findings to the funding recipient and later works with them on any recommendations and “potential recoveries.”
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“We are unable to disclose whether any sanctions or monetary recoveries are being pursued, as this information relates to contractual obligations between Canada and the audit recipient,” the ISC said in its statement.
In the letter, the ISC provided a table of ineligible and unsupported expenses found in the audit.
COVID-19-related expenditures make up most of the unsupported costs, totalling more than $23.2 million. The ISC said in its letter that this spending line was largely due to a lack of documentation to validate purchases of personal protective equipment, along with their delivery and distribution to First Nations.
The FSIN, which represents 74 Saskatchewan First Nations, held a news conference in Saskatoon on Monday, inviting only Global News and one other news publication.
At the conference, Cameron defended his organization’s spending, saying it was to meet the demands of the COVID-19 pandemic at the time.
“We want to say we did it for the proper reasons, the right reasons, and we’ll continue to do it that way, as the Creator sees fit,” he said.
“We have strict financial approvals that we follow from day one, and that’s what we believe.”
Other areas of major spending that were deemed ineligible for federal funding include administration costs, totalling over $1.9 million, and $800,000 for a new office building.
“This is a direct shot at all First Nations and organizations when they say you can’t spend your admin dollars on certain things,” Cameron said.
The letter also notes that fleet vehicles totalling $1.2 million were purchased using administrative fees and not under programs through which the purchases would be eligible.
In the itemized list of spending, 21 vehicles were purchased between 2021 and 2023, ranging in price from $28,000 to $77,000.
Cameron said these purchases reflect the mileage travelled with the vehicles.
“You’ve got to understand, we probably put 10,000 kilometres a month on any given month,” he said. “The roads that we drive on are pretty brutal at times. The suspension really takes a hit.”
Rob Louie, founder and president of the Band Members Alliance and Advocacy Association of Canada, shared the letter online after a whistleblower provided it.
Louie said the letter reconfirms his ongoing concerns.
“The numbers don’t lie,” Louie told Global News in an interview.
“If this happened at the Saskatchewan government or any other white organization, you know that heads would roll, people would be fired, and people sure as heck would not be re-elected back into that organization.”
The forensic audit was prompted after ISC’s assessment and investigation services branch received allegations about a lack of transparency over FSIN’s expenditures, including COVID-19 and travel, as well as payments made to a former employee and other claims.
The FSIN has until April 2 to respond to the ISC or dispute the calculations of the audit, according to the letter.
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