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Ombudsman for Aboriginal Affairs Needed

Author: Tanis Fiss 2005/08/04
Since the Auditor General of Canada first released her findings on the federal Sponsorship Program, there has been plenty of discussion about waste and mismanagement of taxpayers' money. The scrutiny currently placed on the federal government is more than warranted, however, there are other levels of government that need to increase accountability - namely Aboriginal governments.

The federal government spends approximately $8-billion annually on Aboriginal affairs. Roughly 80 percent of the money is transferred directly to native band councils to disperse within their communities as they see fit.

Under the Indian Act, there is no requirement for native governments to reveal their financial records to their members, let alone to the federal auditor general or taxpayers. Clearly, this loophole must be closed. Open government, accountability and transparency are minimal requirements for native communities to improve.

Presently, the delivery of programs is in the hands of the chief and council. Since there is little separation between politics and administration on reserves - and there is no requirement to do so - everything on a reserve that is in any way related to band administration is politicized. This scenario provides the chief and council with tremendous power and control over community members.

This power is often abused. Many Canadians are familiar with media accounts of corruption and mismanagement of reserve funds. For example, as per band financial documents, leaders of the Alexander Native Band of Alberta authorized at least $108,868 in cheques to dozens of voters on the eve of the September 12, 2002 election. Six members of the Alexander Band swore affidavits in Federal Court saying they were paid on the understanding they would vote for incumbent candidates for chief and band council. Three of them received $150 or $200, according to the band administration's general cheque ledger.

Earlier this year, it was reported the Labrador Innu Band Council of Natuashish could not account for $3 million in a recent audit. The band later indicated only $300,000 could not be accounted for. Band members allege alcohol was distributed during the last band council elections.

As a result of the poor accounting practices and allegation of "vote-buying" Natuashish community members organized a petition calling for the chief to be fired and sent the petition to the Department of Indian Affairs. Regrettably, Indian Affairs Minister Andy Scott did not launch an investigation, but passed the buck to the RCMP to lay charges upon receipt of a complaint. Thus, the concerned band members are caught in a vicious circle with little hope of redress in sight.

Unfortunately, these are not isolated incidents.

Assess to Information documents obtain by the Canadian Taxpayers Federation show in 2003 the Department of Indian Affairs received 297 allegations of corruption, nepotism or mismanagement by native band councils.

An Ombudsman for Aboriginal Affairs needs to be established. The ombudsman would have authority to investigate complaints and propose changes in a band's administrative practices or the administrative practices of the Department of Indian Affairs. If the band or department fail to make those changes, a report would be brought before Parliament.

Under the current system, native Canadians are caught between a rock and a hard place when they raise concerns over their chief and council's performance. In many cases, neither the native band nor the Department of Indian Affairs wishes to address the concerns. An Ombudsman for Aboriginal affairs would provide native Canadians with an independent investigative authority to address concerns over alleged native band misconduct.

If recent allegations heard at the Gomery Commission are any indication, fiscal mismanagement and vote-buying are alive and well within Canada's federal government. As a result, the sponsorship scandal has taken abuse in other important areas of government off the radar screen. Non-aboriginal Canadians can raise concerns with their MP, opposition parties or the auditor general. Native Canadians do not have this luxury. An Ombudsman for Aboriginal Affairs would provide them with some degree of accountability.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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