Native Bands: Where Has All the Money Gone
Author:
Richard Truscott
1999/02/08
The need for greater financial accountability on Saskatchewan Indian reserves is nothing new. But the urgency of the problem has been highlighted by the incredible story of the Salteaux reserve near North Battleford.
The 800-member Salteaux band received $7.45 million from the government last year. That works out to over $9,300 per member to administrate the band. They ended the year with a deficit of $1.2 million, up from a relatively modest $72,000.
Where did the money all go It went travelling, in more ways than one. The band council spent $600,000 on travel, more than Saskatchewan's entire provincial cabinet. There were other dubious expenses as well, including $46,000 to "payee unknown". Well I don't know who Mr. Unknown is, but he's probably on a beach somewhere.
This is an extreme case, but this kind of situation is not that uncommon.
Documents from the federal Indian Affairs department reveal that of Saskatchewan's 71 Indian bands, two-thirds are carrying debt, 41 are in remedial management plans (with deficits that exceed 8% of their annual budgets), another eight bands are under co-management and four others are under third-party management because of massive debt loads.
Similarly, according to a Federation of Indian Nations (FSIN) report, last year Saskatchewan Indian bands were collectively $50 million in debt.This year, they are $70 million in debt. Some bands are in spectacular difficulty - 20% of the bands account for 80% of the debt.
The FSIN report criticizes some band financial practices, and calls for a better system of financial management on reserves. Certainly, enhanced professionalism and accountability is long overdue - the CTF has been calling for this for years.
But the report also blames federal cutbacks. My question is "What cutbacks " The growth of expenditures has slowed in recent years, from a ridiculously spendthrift 10% a year in the 80s, but it is still increasing at least 3% a year. Funding for natives through the Department of Indian Affairs has been unique in escaping the government's axe.
The fact is that the feds spend over $6 billion a year on native governments and programs. That's the government's second largest expenditure after national defense. Saskatchewan bands alone receive over $640 million a year in federal and provincial funds. And what do we have to show for all this money On many reserves, we have poor housing, poor schools, poor health care, and a third world standard of living. No citizen of Saskatchewan should have to live under a government that allows such conditions to continue while "payee unknown" and travel agents pocket public funds. Money is not the problem. Lack of accountability is.
Let's start with a system of independent annual financial audits and operational audits, much like the Provincial Auditor conducts on the government. This will root out mismanagement and corruption, and it will also provide band members and taxpayers at large with an indication of the efficiency, effectiveness, and quality of services being provided on reserves.
Life on reserves will improve if reserve governments and politicians are subject to the same kind of regulation, scrutiny, and accountability that protects every one else in Saskatchewan. Natives are demanding accountability from their leadership, and they deserve nothing less.