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Ottawa can step in for First Nations finance illegalities

Kenyon Wallace, National Post · Tuesday, Nov. 23, 2010

The federal government has “absolute power” to usurp control of First Nations’ finances if illegal activity is identified, says an aboriginal affairs expert, in light of new federal data revealing that scores of reserve politicians earn more than Prime Minister Stephen Harper and most provincial premiers.

“When it comes to an issue like finances and how much councillors and chiefs are potentially making, if there are issues at play where ... there’s embezzlement going on or if we have a band chief who is completely empowered and benefiting himself and his family through this process, Indian Affairs has absolute control through the Indian Act as a mechanism to enter into those communities,” said Yale Belanger, a professor of Native American Studies at the University of Lethbridge.

Chief and band council salary figures obtained by the Canadian Taxpayers Federation show that more than 80 reserve politicians earned more than the after-tax income of $184,000 made by Prime Minister Stephen Harper in 2008-09, while 222 others were paid more in tax-free income in the same period than their respective provincial premiers. Neither the names of politicians, nor their affiliated First Nations were identified.

The records, obtained through access to information requests and released this week, do not suggest embezzlement or any other criminal activity is taking place on the part of reserve politicians, but raise questions about the extent to which chiefs and council members are accountable to their constituents and to Canadian taxpayers, who fund federal transfers to First Nations to the tune of $7-billion annually.

Prof. Belanger says if Indian and Northern Affairs Canada (INAC) finds that a First Nations community is unable to manage its own funding, the department can install a third-party manager. But so far, it has been reluctant to do so, he says, because of the federal government’s recognition in 1995 of the inherent right of First Nations to self-governance.

“I think we’ve seen the government really pull back the reins on a lot of these issues in an effort to, in its own strange way, allow for the communities to grow their own accountability and governing regimes,” Prof. Belanger said. “So in this instance, standing back and allowing the communities to truly implemenet those processes, is what’s driving what could be construed as resistance from the outside.”

INAC continues to maintain that it has no power to determine the salaries of First Nations politicians.

Conservative MP Kelly Block has tabled a private member’s bill that seeks to make the salaries and expenses of all First Nations chiefs and councillors public to all Canadians, not just band members. The bill is up for its first hour of debate Thursday.

But Jean Crowder, NDP critic for aboriginal peoples affairs, argues the bill is simply a political ploy.

“The Assembly of First Nations has consistently offered to work with the government around accountability,” she said. “When the Conservatives brought forward the Accountability Act in 2006, the AFN again reiterated its stance around wanting to work with the government on accountabiliy. The government has not responded. Instead of a piece of legislation, why don’t people roll up their sleeves, get down to the table and do something about this?”

Despite several interview requests over the past two days, staff members for Indian Affairs Minister John Duncan said the minister was unavailable for comment.

In an interview with the National Post, Grand Chief Ron Evans of the Assembly of Manitoba Chiefs, said his executive council does not support Ms. Block’s bill but is committed to working with band membership to disclose salaries.

“The feeling is that chief in council are accountable to their membership, as opposed to the federal government,” he said. “Based on what’s been happening lately, perhaps that’s something the executive council may want to reconsider.

“To be truthful, I’m not really sure why [salaries] wouldn’t be public.”

kewallace@nationalpost.com