Michael Joel-Hansen And Dave Deibert
Saskatoon StarPhoenix
A vice chief with the Federation of Sovereign Indigenous Nations says he “cannot, in good conscience” stand behind members of the FSIN executive who deny or deflect a forensic audit that says more than $34 million of the organization’s spending between April 2019 and March 2024 was questionable, unsupported or ineligible.
FSIN fourth vice chief Craig McCallum, in an explosive statement, said the findings of the audit “cannot be dismissed or minimized … The teaching of honesty reminds us that we must face the truth, even when it is difficult.”
The forensic audit, conducted by KPMG for the federal government, examined federal funds provided by Indigenous Services Canada to the organization, which represents 74 First Nations in Saskatchewan. The department said last March the audit would review more than $141 million in funding provided since April 2019.
McCallum, who was elected fourth vice chief in October 2023, said on Thursday that he can’t speak for decisions made before his term, “but I can speak to the need for change going forward. Denial and deflection will not restore trust. Only transparency, humility and the wisdom to listen to our people will heal the wounds caused by secrecy. Industry is watching, Canada is watching, and most importantly, our people are watching.”
The fourth vice chief’s public statement came days after Muskeg Lake Cree Nation Chief Kelly Wolfe called on McCallum to speak out.
Wolfe said the transactions noted in the audit are not a mistake, and accused FSIN leadership of developing plans to benefit themselves financially amid the pandemic.
“You need to separate yourselves from the old boys club. You need to do what’s right,” Wolfe said at a press conference.
Organization was hindered during probe: FSIN
The FSIN this week responded to the results of the audit, saying it has a robust system of financial management, accountability and transparency, but that processes during the probe hindered the organization’s ability to provide relevant information.
“(The federation) has excellent capacity and record keeping … unfortunately, due to underfunding, many First Nations and First Nations organizations do not have the level of capacity to respond to such audits,” the organization said in a statement released on Wednesday.
“Systemic change is required as transparency and accountability should be a partnership that helps First Nations build capacity — not a series of hoops they must jump through that keep moving and shrinking.”
The audit found that $23 million of the $30 million the organization received for COVID-19-related funding was spent in a way that was “questionable.” It also said KPMG couldn’t determine if any of the personal protective equipment purchased with the money was distributed to communities the federation represents.
The audit also cited more than $50,000 in “questionable” or “ineligible” travel expenditures, along with another $265,000 in travel spending that KPMG said may have contravened the organization’s own policies.
KPMG also said there may have been an overpayment among nearly $250,000 in salary and contract payments issued to a former employee, among other charges for vehicles, photocopying, administrative fees, and procurement KPMG found ineligible, questionable or unsupported.
The federation said it hasn’t received the full audit report, despite sending multiple requests to Indigenous Services Canada, and isn’t able to provide rationale for each finding.
A spokesperson for the department said it has not received a request from the federation for a full copy of the report.
“Consistent with our normal practice, the department does not provide copies of the reports to funding recipients as the information is deemed highly sensitive and may contain protected and/or personal information,” said Anispiragas Piragasanathar in a statement.
“The final summary report, which is posted to the department website, provides all publicly available information.”
The federation reiterated calls it made decades ago for the creation of a First Nations auditor general.
“The FSIN has faced unwarranted attacks in relation to the forensic audit … These attacks seem to be fueled by malicious intentions and have contributed to heightened racial tensions by perpetuating negative stereotypes about First Nations,” it said.
Leadership must reflect ‘values and teachings’
McCallum said he is committed to ensuring all financial decisions are documented and reported in writing, and that he will advocate for independent oversight and stronger accountability mechanisms to ensure the FSIN executive “cannot act outside of our established policies and procedures.
“I will also work to create a healthier environment within FSIN, one rooted in respect where open dialogue is welcomed and lateral violence and silencing is not tolerated.”
McCallum said his responsibility is to the nations that comprise the FSIN. He said he will “continue to uphold integrity, transparency and accountability, even if it means standing apart, because our people deserve leadership that reflects our values and teachings.
“If we deny and deflect, we will only lose more trust and credibility with the people we represent and with Canada.”
— With files from The Canadian Press
