FSIN rejects ISC oversight changes, strengthens confidentiality rules

Details on FSIN audit flag payments made to former executive

The Federation of Sovereign Indigenous Nations (FSIN) is pushing back against the federal government and chiefs calling for more transparency and accountability.

At its annual spring assembly in North Battleford on Wednesday, the FSIN passed a resolution formally rejecting forensic audit findings from Indigenous Services Canada (ISC), and the federal department’s plans to implement stricter financial oversight.

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The resolution also reaffirms FSIN’s support of taking the government branch to court over its use of fees.

Last month, ISC sent a letter to FSIN Chief Bobby Cameron and CEO Martin Paul calling for FSIN repay $27.8 million of ineligible and unsupported spending from an audit period between April 2019 and March 2024. Cameron and Paul had until April 2 to provide further evidence of spending to potentially reduce the repayment amount.

Chiefs of the 74 nations which make up the FSIN were meeting Wednesday and Thursday for the first time since the audit findings were revealed to the public.

One of the agenda items before chiefs was a resolution responding to the ISC and amendments to the Financial Management Act.

A copy of the resolution obtained by CTV News says ISC informed FSIN on Feb. 4 of a coming change to the structure of its federal funding, which will move to set agreements “due to a high amount of outstanding reports at one time and due to the findings of the forensic audit.”

This has major funding implications for FSIN.

According to ISC’s website, set funding agreements come with more rigid requirements. Set funding must be spent or returned by the end of the fiscal year and cannot be shifted to other categories like flexible agreements — which FSIN has been under for multiple years.

The resolution says set funding is “unfairly punitive,” and says the switch is premature since further action was requested by ISC.

“FSIN earned the current status for flexible agreements through years of unqualified audits, sound financial management, transparency and accountability,” the resolution read.

The FSIN says the audit findings remain inconclusive while under further review, and that adequate documentation was provided.

At a separate event on Tuesday, Cameron distanced himself from the organization’s day-to-day accounting.

“I don’t get into the details, right?” FSIN Chief Bobby Cameron said, briefly responding to the audit

“I stick to the high-level politics. I got (Paul), my chief of staff, and them that do all of that.”

Chiefs must sign NDA

Several chiefs have taken to social media to voice their concern and disapproval of a requirement for members of the treasury board to sign a non-disclosure agreement.

“When it comes to financial governance, leadership needs to be able to speak openly, ask questions, and bring information back to the Nations they represent. Any amendment that moves things in the direction of less openness is something we have to take seriously,” Chief Kelly Wolfe of Muskeg Lake Cree Nation said.

The zero-tolerance approach to disclosure of information to the media, partner organizations or anyone not authorized will result in a treasury board member vacating their position and potential further action.

“Transparency is not optional — it is a cornerstone of ethical governance,” Chief Jonathan Pasap of White Bear First Nation said online in opposition.

Failure to sign the agreement will forbid any participation in meetings or viewing materials.

“I do not support NDAs in this context,” Headperson Tyler George of kakisiwew-ochapowace Nation said.

“As leaders, we are accountable to our people. We have a duty to report back to our Nations, including on financial matters. That responsibility should not be restricted.”

Sources tell CTV News 31 chiefs voted in favour of the resolution. Twelve chiefs opposed the resolution and two chiefs abstained.

Passap and Wolfe attempted to present a resolution calling for structural change at FSIN, developing internal ethics oversight and improving financial reporting. It was ultimately defeated and not added to the spring assembly agenda.