Liberals abandon First Nations

Documents recently obtained by the National Post offer a welcome and all- too- rare bit of good news concerning Canada’s First Nations bands. Despite the decision by the Liberal government l ast year to drop an enforcement mechanism contained within the previous government’s First Nations Financial Transparency Act ( FNFTA), most bands — 85 per cent, for the last fiscal year — remain compliant with the FNFTA’s financial disclosure requirements.

First Nations bands, which receive funds from the federal government, are expected to provide audited financial statements showing the revenue and expenses of the band, and a statement detailing the compensation awarded to band chief and other senior officials. Under the previous legislation, the federal government could withhold funds from any band that failed to provide these documents within 120 days of the end of a fiscal year. Enacted in 2013, the FNFTA, when backed by the possibility of funds being frozen or suspended, saw compliance rates of 90 per cent or better.

The 85- per- cent compliance rate remains high; most bands are continuing to comply with disclosure requirements even absent the threat of punishment (about 90 bands have not fully complied, which, for the sake of their members, is 90 too many). This reflects well on them, their leadership and their commitment to honest and transparent governance. The drop from 90 per cent (or better) compliance to 85 may also reflect, the National Post found, failures not on the part of the bands, but potentially the federal government itself, which may not be speedily processing its own paperwork.

But the drop in compliance still raises a troubling question: Why did the Liberals drop the possibility of withholding funds in the first place? It may be a little-needed, rarely used recourse — we’d hope so — but these are public dollars, and the government, and taxpayers, have a right to insist on ensuring they are well spent. The nowdefunct punitive mechanism was a proportional and appropriate response to any band that refused reasonable disclosure. It should never have been dropped.

This is especially true because the Liberals have never offered a satisfactory explanation. In a press release put out slightly over a year ago, shortly after the Liberals were sworn in as Canada’s new government, Indigenous and Northern Affairs Minister Carolyn Bennett said, “( In) keeping with our commitment to a renewed, nation- to- nation relationship, the Government of Canada will suspend any court actions against First Nations who have not complied with the Act. Transparency and accountability are paramount to any government, whether it is municipal, provincial, federal or First Nation.

We will work in full partnership with First Nations leadership and organizations on the way forward to improve accountability and transparency.

This cannot be achieved without the engagement of First Nations and its members.” The Liberals also released any frozen or withheld funds to bands that were not in compliance.

It was not surprising to hear the Liberals talking about engagement with First Nations. They’ve long talked a good game on that file; results have been harder to come by, mind you, but still. Minister Bennett’s remarks were consistent with her party’s message — but not with logic. If the government’s goal was “transparency and accountability,” it would not have neutered legislation that existed solely to provide transparency and accountability. The drop in compliance seen last year was small — but a drop nonetheless Unless the government can demonstrate the bands not in compliance are entirely blameless, victims of federal bureaucratic delay, the implication is clear: In the name of transparency and accountability, the Liberals have reduced both.

This would be regrettable and unjustifiable on its own merits. But there is a broader issue at play. In seeking a better relationship with some band leaderships, the Liberals have abandoned the populations of certain reserves to cronyism and poverty. Most of Canada’s bands are well run ( as the high rate of compliance with the FNFTA helps demonstrate). But on too many occasions in recent years, Canadians have heard stories of members of well- financed bands living in squalor and deprivation, while funds intended for their care and the betterment of their communities were wasted or unaccounted for.

It was those people — Canadian citizens — whom the FNFTA was intended to protect.

It is unfortunate the Liberals abandoned them in pursuit of yet another hollow talking point about reconciliation with First Nations.

WHY DID THE LIBERALS DROP THE POSSIBILITY OF WITHHOLDING FUNDS IN THE FIRST PLACE?