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No Need for Separate Auditor

Author: Tanis Fiss 2006/03/27
Recently native leaders gathered in Gatineau, Que to discuss the idea of an independent auditor that would be responsible to audit the chiefs and councillors of native reserves. There is no need for a separate auditor. The move is essentially a pre-emptive strike by native leaders to avoid falling under any federal government accountability measures.

Canadian taxpayers already spend approximately $10 billion each year, for federal and provincial programs directed at native Canadians. Once the federal government transfers roughly 80 per cent of the money from the federal departments to native bands, the auditor general of Canada no longer has the authority to audit how and where the money is spent. No checks and balances foster inefficiencies, redundancies, corruption and even abuse.

Indeed, Access to Information documents obtained by the Canadian Taxpayers Federation (CTF) show in 2003, the Department of Indian Affairs received 297 allegations of corruption, nepotism or mismanagement by native band councils. Regrettably, for both natives and taxpayers there is little to show for all the spending. The status quo is failing.

During the last election campaign, the Conservative Party of Canada made no bones about their desire to increase accountability for all Canadians including support of the failed First Nations Governance Act. The Governance Act was intended to increase accountability and transparency on reserves, as well as, provide regulations for how and when local government elections are conducted. Regrettably, shortly after assuming the role as prime minister in 2003; Paul Martin killed the Governance Act.

The new federal government has promised to introduce an Accountability Act shortly after the House of Commons resumes in April. If the ultimate goal is to provide all Canadians with a greater sense of accountability and transparency as to how tax dollars are spent, then native communities should be included as part of that legislation. If this were done, native communities would likely fall under the jurisdiction of the Auditor General of Canada.

Regardless of what happens with the proposed Accountability Act one thing is clear; creating a separate auditor would not be the best use of tax dollars. A separate auditor would only increase government bureaucracy and thereby increase the cost to taxpayers. A far simpler approach would be to expand the existing auditor general's mandate to include native bands as this would not require as many tax dollars to operate due to the economies of scale, plus the added bonus that the standard of audits, mandates and scrutiny would remain consistent.

It is a positive step forward that native leaders are discussing ways to improve accountability and transparency on native reserves. However, creating a separate bureaucracy is not the answer.

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