The Federation of Sovereign Indigenous Nations (FSIN), representing 74 First Nations in Saskatchewan, announced its intention to challenge Indigenous Services Canada (ISC) in a legal battle concerning an audit that necessitates the repayment of over $12.3 million. In response to ISC’s final decision, FSIN expressed strong disagreement with the deemed ineligible spending amount of $12,376,807.40.
Chief Bobby Cameron of FSIN stated that while ISC has concluded its process, the matter remains unresolved for FSIN, prompting the organization to initiate legal action without divulging specific details. FSIN highlighted that a significant portion of the disputed sum, nearly $8 million, pertains to the procurement of personal protective equipment (PPE) during the COVID-19 pandemic. ISC acknowledged the validity of these PPE purchases on June 12, removing them from the list of contested expenses.
Despite the evidence provided and advice from ISC staff, FSIN expressed surprise at the reinstatement of these expenses and affirmed confidence that a fair and independent review would validate the eligibility of all expenditures and refute the allegations.
The forensic audit conducted by KPMG on behalf of ISC scrutinized FSIN spending from April 2019 to March 2024, reviewing $47.1 million in transactions. Of these, $34.3 million was flagged, with $3.7 million deemed ineligible, $30.4 million labeled as questionable, and $156,000 marked as unsupported. The audit raised concerns over consultant expenditures lacking comprehensive documentation, particularly those with ambiguous deliverables and procurement rationale.
The audit spotlighted $23.5 million in questionable expenses linked to COVID-19 funding, revealing that out of $30 million received between April 1, 2020, and March 31, 2023, only $3 million of reviewed transactions met eligibility criteria. Additionally, KPMG questioned $8 million in administration fees, various internal charges, and identified irregular payments to a former employee totaling $246,524 as ineligible. The audit indicated that the former employee received funds through a personal company contract with FSIN for services resembling their employment responsibilities, along with an inappropriate severance package.
