SASKATOON, Sask. — The Federation of Sovereign Indigenous Nations is challenging Indigenous Services Canada’s demand that it repay $12,376,807.40 in expenditures the federal department deemed ineligible following a forensic audit. The FSIN denies wrongdoing and said it participated fully throughout the review.
FSIN has begun legal action to challenge ISC’s decision and the amount it claims is owed, said FSIN Chief Bobby Cameron in a news release Wednesday.
The demand follows a review of FSIN funding from April 1, 2019, to March 31, 2024, including COVID-19 funding for which ISC said it could not obtain complete supporting documentation.
The FSIN said it provided records and engaged in detailed discussions with an ISC-appointed team. According to the FSIN, nearly $8 million in personal protective equipment purchases had been substantiated and removed from the disputed expenditures during discussions with ISC. The organization says it was surprised those expenses appeared again in the final repayment demand.
The remaining approximately $4.4 million in disputed spending relates mainly to administration fees, says the FSIN, maintaining that the ISC has not supported its position with policies.
“ISC may have concluded its process, but this matter is not concluded for the FSIN. Our staff have cooperated, provided the records requested and defended the decisions made through our own governance processes,” said Cameron in Wednesday's news release.
Cameron added that FSIN is confident a fair, independent review will establish that the expenditures were eligible.
In the same news release, FSIN Vice Chief Fabian Head, Red Earth Cree Nation’s former chief, said he personally reviewed the financial records, policies, and expenditures ISC identified after joining the FSIN executive. He said the review reinforced his confidence in the organization’s financial management, accountability measures and governance processes.
“Based on the evidence before me, the expenditures that ISC has classified as ineligible are legitimate, reasonable, and consistent with both the funding agreements and the realities of serving First Nations communities,” Head said.
He added that he supports the FSIN’s decision to challenge the findings and defend the interests of the Nations it represents.
The FSIN also criticized communications with ISC, saying it had repeatedly tried to contact Indigenous Services Minister Mandy Gull-Masty by phone and email while receiving information about the matter through media reports.
The FSIN said the process fell short of the respectful, professional relationship the Crown should maintain with First Nations.
SaskToday has reached out to FSIN and ISC for additional comments. They had yet to respond as of publication time.
