Michael Joel-Hansen
Saskatoon StarPhoenix
The Federation of Sovereign Indigenous Nations has been at the centre of controversy, with leadership of the Saskatchewan organization under scrutiny from the federal government and some First Nations leaders.
The FSIN, which represents 74 Saskatchewan First Nation governments and has a mandate to protect inherent treaty rights, was recently presented with the results of an audit raising major questions about spending by the organization.
Among the issues brought forward by auditors was over $23 million in questionable spending during the COVID-19 pandemic. The report also raised concerns about the federation’s practices surrounding leasing space in its new building, its accounting practices regarding corporate vehicles, along with payments to employees and travel expenses.
Since the report was made public by Indigenous Services Canada (ISC), First Nations leaders in Saskatchewan have called for changes to the organization while FSIN has rejected the audit findings and insists all spending was proper.
Here is what you need to know about the recent issues at the FSIN, and the fallout.
Where did the issues start?
In an emailed statement, ISC spokesperson Anispiragas Piragasanathar wrote that the ministry launched a forensic audit of FSIN in March of 2024 after it received allegations. The email did not provide specific details, including who brought the allegations to the ministry’s attention.
Auditors were charged with examining FSIN’s finances from April 1, 2019 to March 31, 2024.
What did the audit find?
A summary of the audit, carried out by the accounting firm KPMG, was posted on ISC’s website and highlighted a number of issues with spending at FSIN. Among the spending flagged was over $23 million provided to the organization to pay for personal protective equipment for First Nations during COVID. Auditors said this spending was classified as “questionable” due to a lack of documentation.
Auditors flagged over $3 million in spending as “ineligible” due to those expenses not being appropriate uses for ISC funding.
Other issues brought forward by auditors included over $200,000 in overpayments to a former employee, along with corporate travel expenses and expense claims made by a vice chief for travel while they were on leave from the organization. Auditors also questioned accounting practices related to office expenses, fleet vehicles, salary increases for FSIN executives and procurement policies.
ISC said the findings of the auditor’s report was given to FSIN leadership on Sept. 11.
What was the response of First Nations leaders?
On Sept. 26, Saskatoon Tribal Council (STC) Chief Mark Arcand was joined by the chiefs of Muskeg Lake Cree Nation, James Smith Cree Nation and a number of other elected First Nations leaders who called for accountability from FSIN.
Arcand called for the federation’s leadership to respond to the audit and stressed the need for structural changes to improve governance and accountability. The STC leader said FSIN’s executive needed to meet with chiefs and address their concerns.
During the same media conference Kelly Wolfe, chief of Muskeg Lake Cree Nation, called on FSIN Fourth Vice Chief Craig McCallum to speak up and “separate” himself from the rest of federation’s leadership.
What was FSIN’s response to the audit?
Senior leadership from the organization did not issue public statements in the days immediately following the release of the auditor’s report.
Oct. 1, FSIN broke its silence with a public statement which “rejected” the findings of the audit. FSIN insisted it provided proper documentation to account for all spending. The statement said FSIN had submitted additional documentation to ISC, and added it expects after review that the ministry will find all spending to be appropriate.
The organization said the audit findings were difficult to respond to, as it has not been provided with a complete copy. FSIN said it made numerous requests to ISC to get the documentation but had not heard back.
The organization said it has been subjected to “unwarranted” attacks due to the audit and said calls for the organization to be audited trace back to the 2024 elections, where certain candidates publicly spoke out in support of the idea.
FSIN added it has been working to keep chiefs as informed as possible about developments.
What has ISC said since the release of the audit?
When asked for comment right after the report’s release, ISC said the ministry is committed to transparency and accountability. ISC said auditors made recommendations to FSIN to improve governance, and added the ministry will monitor the situation.
When asked about FSIN’s claims about not being provided a report after making a request, ISC issued a statement saying the ministry had not received any such requests from the federation. However, in a follow-up statement, ISC said it had in fact received a request for the full report. The follow up statement said ISC would work to provide FSIN with the line-by-line of the audit samplings as soon as possible.
The ministry said it cannot provide the full report, as the information is considered highly sensitive and might also contain protected or personal information.
What are FSIN’s elected leaders saying?
Craig McCallum, the FSIN’s fourth vice chief, is the only member of the organization’s elected leadership who has spoken out publicly.
In a statement put out on Oct. 2 McCallum broke with the organization and said he could not stand with fellow FSIN leaders as they deny and deflect regarding the findings of the audit. He said these actions will hurt FSIN in the eyes of the people the organization is supposed to represent, along with Canada.
The vice chief said he is prepared to advocate for independent oversight ,and work to improve the working environment at FSIN.
