Court documents show FSIN knew ISC audit decision months before informing members

Federal Court documents show the Federation of Sovereign Indigenous Nations (FSIN) knew the details of money owed to the federal government months prior to the organization’s recent public disclosure.

Documents show in August that the FSIN applied for a judicial review, alleging procedural unfairness following Indigenous Services Canada (ISC)’s decision in July that the organization owed $12.4 million to the federal government due to ineligible and unsupported expenses between April 2019 and March 2024.

The FSIN publicly announced the revised figure Wednesday in a media release, stating it does not accept ISC’s final decision and sharing that it has commenced legal action.

“ISC may have concluded its process, but this matter is not concluded for the FSIN,” said FSIN Chief Bobby Camerson in the release.

“We remain confident that when this matter is subjected to a fair and independent review, that all expenditures will be proven eligible and the allegations proven false.”

Political analyst Jennifer Laewetz is questioning how much information is being shared with First Nations leaders.

“We’re seeing a lot of communication now from the FSIN in the last year regarding the audit almost strictly on social media and then sent to certain media outlets,” says Laewetz.

“So rather than seeing this proper communication coming frequently from the federation to the chiefs and assembly, you know through email or whatever, it might be they’re finding out about a lot of these things, they’re finding out a lot about the FSIN and its stance on things, through the media.”

Court documents show the FSIN claims loss of “finite reserves” and experienced staff. The organization has listed postings for multiple jobs since July.

FSIN Vice Chief Fabian Head said in a statement he supports the FSIN’s efforts to criticize ISC’s decision.

“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,” said Head.

ISC originally found $34.2 million in estimated questionable expenditures and lowered the amount following a line-by-line review. The FSIN said the two sides had substantially narrowed the amount in dispute by June 12.

Laewetz suggests the dispute is part of a broader problem of the federation focusing on defending itself and not representing member nations.

“Money is obviously a big piece. There should be some accountability. But I think on the other side of that, we also need to be asking, is this money getting to where it needs to go when in terms of resources,” Laewetz said.

“This organization has been largely silent and kind of missing on part of the bigger conversations impacting treaty, Bill C-5, 39, Bill S-2, child welfare reform. Where have you been?”

Indigenous Services Canada said the money owed is now considered a debt owed to the Crown.

ISC is seeking repayment in full by Nov. 13 and warns the money could instead be deducted from future federal funding if it isn’t paid.

Laewetz said that shouldn’t become a financial burden for member nations.

“I would hope that First Nations people understand this is not up to our nations to pay. Under no circumstances should our First Nations be transferring money to the federation to make these payments or to pay back this money,” said Laewetz.

Global News has repeatedly sought interviews with Chief Cameron and other vice chiefs. Cameron agreed to a Friday morning virtual interview with Global News, but later cancelled, citing a death on Red Earth Cree Nation.

The court challenge remains ongoing.