FSIN releases public statement, calling audit ‘disagreement in interpretation’

The Federation of Sovereign Indigenous Nations (FSIN) is speaking out publicly for the first time in days amid mounting pressure for accountability, after the federal government asked it to repay millions of dollars in spending.

In a news release shared online by the FSIN, the organization is defending its $28.7 million in spending between April 2019 and March 2024, calling the audit conducted by KMPG into its spending a “fundamental disagreement in interpretation” and not a misuse of funds.

“At no point has there been any finding of fraud, personal gain, or intentional wrongdoing. Instead, the issues raised relate to classification, allocation, and evolving interpretations of administration,” the statement reads.

Indigenous Services Canada (ISC) sent a letter to FSIN dated March 12, sharing its response to the audit and detailing ineligible and unsupported expenses in several categories, including COVID-19, administration, fleet vehicles purchased, and a new office building. Just over $4.8 million is deemed “ineligible,” while $23.9 million is considered “unsupported.”

COVID-19-related expenditures make up most of the unsupported costs, totalling more than $23.2 million. The ISC said in its letter that this spending line was largely due to a lack of documentation to validate purchases of personal protective equipment, along with their delivery and distribution to First Nations.

In its Tuesday statement, the FSIN defends its COVID-19 relief spending, saying it has documentation supporting its personal protective equipment rollout, including chiefs who signed off on the deliveries.

“The efforts of FSIN staff that put their health and the health of their families at risk to deliver PPE during COVID should be celebrated — not denied,” the statement reads.

Some chiefs supported FSIN’s handling of the pandemic on Monday at a press conference to which the organization only invited Global News and one other publication.

“We are saying clearly today that First Nation governments cannot be expected to carry the burden of over-recording, shifting rules and public criticism while being denied the respect owed to governments,” said Michael Starr, chief of Star Blanket Cree Nation, on Monday.

The statement goes on to say that the FSIN “remains committed to transparency and accountability,” adding that accountability “must be grounded in fairness, consistency, and respect for the Treaty relationship.”

But for political strategist Jennifer Laewetz, the FSIN is not taking accountability for its actions.

“Every organization has the capacity to make mistakes,” Laewetz said.

“This could have been the opportunity to say, ‘We’re going to be looking at our internal processes, we’re going to be looking at strengthening our processes, what can we do better, and what can we learn from this?’”

Laewetz adds that this ongoing audit saga only detracts from bigger issues in First Nations communities.

“The fact that we’re even wasting this amount of time and this kind of distraction during very big critical items that are hitting the table in this country, including Bill C-5 and Bill S-2, we need these organizations to be very strong.”

The ISC released findings from the audit last fall, noting $34 million in questionable transactions.

Band Members Alliance and Advocacy Association of Canada shared the ISC’s letter to FSIN online last Friday after a whistleblower provided it to them.

The FSIN has until April 2 to dispute the audit’s claims.

FSIN chief Bobby Cameron said Monday he intends to take the matters to court once mandated by chiefs.

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