Liberals’ stance on First Nations disclosure ‘horrific’

B.C. MP decries ‘violation’ as Ottawa ignores financial transparency law

The Opposition called on the federal government Monday to reverse its “horrific” decision to not enforce the previous Conservative government’s law that requires First Nations to disclose their financial statements and salaries to chiefs and council.

The official Opposition was responding to a Postmedia report disclosing that the RCMP is investigating the tiny Shuswap First Nation band, with an on-reserve population of about 100, after a forensic audit showed $4.2 million in undocumented transfers to a

single family over a three-and-ahalf year period ending in late 2014.

The family lost control of the band council in the election that year after Postmedia, citing data released under the First Nations Financial Transparency Act, disclosed the lavish salaries paid to family members.

“This is a piece of legislation passed by the Parliament of Canada. To not enforce it is in violation of the laws of the country,” said Cathy McLeod, the MP for Kamloops-Thompson-Cariboo and the Conservative critic for indigenous affairs.

“I think it’s a horrific and a terrible mistake, not giving band members the tools they need to make decisions that need to be made.”

She said the legislation, in addition to exposing a few “outlier” band councils enriching themselves, helped show to Canadians

that most chiefs and councils pay themselves reasonable salaries.

Indigenous Affairs Minister Carolyn Bennett announced shortly after the 2015 election that the government would stop enforcing the law, and would return $12 million withheld from 38 bands that didn’t submit their financial statements for publication online.

Bennett, echoing statements from Prime Minister Justin Trudeau, said the new government would find a new mechanism to ensure First Nations governments are accountable to their members.

She said the government’s concessions — the Assembly of First Nations strongly opposed the Tory bill — would lead to new talks “based on recognition of rights, respect, co-operation and partnership and that build towards a renewed, nation-to-nation relationship with Indigenous Peoples.”

However, more than a year after the Oct. 19, 2015 election, there is still no apparent movement on a new disclosure law.

Bennett was in Vancouver attending an Assembly of First Nations gathering and not available for comment, but a spokeswoman made it clear the Liberals have no intention of enforcing the Tory law.

“Everyone — including First Nations governments — supports the need for transparency and accountability, but we will achieve this through working co-operatively with First Nations leadership and organizations, rather than imposing measures upon First Nations unilaterally,” Sabrina Williams said.

Williams said the results of this collaboration will be made public “soon.”