Three First Nations in Saskatchewan can expect some back pay from the federal government.
On Friday, Indigenous Affairs Minister Carolyn Bennett announced the department would reinstate funding to First Nations who were being penalized for not complying with the First Nations Financial Transparency Act (FNFTA).
Bennett also announced the government is suspending any court actions against First Nations who have not complied with it.
The Onion Lake, Ochapawace and Thunderchild First Nations have refused to comply with the legislation since it was introduced last year.
They have also been involved in several legal challenges.
About $1.6 million in federal funding has been withheld from the Onion Lake Cree Nation.
In total, about $12 million has been withheld from more than 40 First Nations across Canada for non-compliance.
The action is welcome news to the Assembly of First Nations National Chief Perry Bellegarde, who said he wants to see a better approach to accountability.
“First Nations fully support accountability but Bill C-27 is a flawed piece of legislation that does not respect our rights and must be repealed,” he said in a news release.
“The AFN has proven in the past that it can work on approaches to accountability that benefit everyone,” said Bellegarde. “We all want to ensure that funding is used effectively and efficiently, that programs and initiatives are improving the lives of our people. This is not just about accountability for spending, this is about accountability for results.”
Bellegarde noted that in 2005 the AFN began working on an “Accountability for Results” initiative with the Office of the Auditor General, Indian and Northern Affairs Canada and the Treasury Board. The initiative was making progress but was terminated by the Conservative government when elected in 2006.
According to the Canadian Taxpayers Federation (CTF), Friday’s action by the federal government was a step backwards.
Spokesperson, Aaron Wudrick says the law equipped First Nation people with the ability to know how much their Chief’s and councillors were making a year.
“A band-owned business is owned by all the people, members of the band. So the people there still have a right to know what is going on with that money. So there have been a couple of cases – and it’s only been a few instances, I’m not suggesting every band does this – but there have been a few instances where there are certain band politicians who have cut themselves a very nice deal for a band business, which only ever came to light because of the transparency act,” he said.
The Financial Transparency Act required First Nations to post their financial information to a website for public viewing.