Windspeaker news briefs - June

WAYNE MCQUABBIE, CHIEF OF

Henvey Inlet First Nation, said his community is “pleased and relieved” that Canada Revenue Agency (CRA) has revoked the charitable status of the Henvey Inlet First Nation Community Support Organization, believing that the revocation will help their lawsuit against the group. A report released to the nation about the support organization’s operations “absolutely astounded us,” said McQuabbie.

“The audit report alleges the charity maintained secret bank accounts, and it appears millions of dollars in so-called ‘donations’ were funneled through those accounts and cannot be accounted for,” he said. “Our First Nation was kept in the dark about the workings of the organization, which was actually run out of Winnipeg, not here.” The nation is located in northern Ontario.

He said Henvey Inlet First Nation has been co-operating with Canada Revenue Agency in its inquiry into the financial operations of the charity. “One of the first things I found when I took office in 2007 was a suspicious book of tax receipts. When I started adding those receipts up, I knew it far exceeded the small amount of funds we had seen managed by the organization.” The chief said $44 million in receipts were issued for cash from April 1, 2003 to March 31, 2008. The nation of about 150 people received less than one per cent of those funds.

An internal inquiry uncovered a scheme involving tax loopholes, hundreds of wealthy off-reserve taxpayers, and off-shore bank accounts, said McQuabbie. But where were the millions now?

“I want to emphasize, and I am sure that First Nations people know this, this issue didn’t originate in our community, and it doesn’t reflect on the character of the band or its members. We have operated in a completely open and transparent fashion.”

The decision to launch a civil law suit against the charity’s trustees was made after extensive consideration and advice from forensic auditors, lawyers and accountants. The former trustees of the support organization have been removed.

“For many of the trustees, it appears their only mistake was trusting someone’s word, that of a particular consultant,” Chief McQuabbie emphasized. “I think they were being used” he added.

THE STANDING COMMITTEE ON

 Aboriginal Peoples is calling for the creation of a First Nations electoral and appeals commission. The commission would be an independent body designed to hear First Nations elections appeals which could also strengthen and promote increased electoral capacity for First Nations and help develop effective, transparent, and accountable First Nations governments and election practices.

A new report entitled First Nations Elections: The Choice is Inherently Theirs also concluded that the existing two-year term of office imposed on First Nations by the Indian Act is too short to provide political and economic stability, often creating deep divisions in communities. It calls for a commitment from Indian and Northern Affairs to assist First Nations who currently hold elections under the Indian Act to revert to “customary” or community-based codes. This would enable nations to design and affirm the details of their self-governance regime in the best way to achieve lasting solutions.

“Our committee acknowledges that governing is increasingly a complex and challenging task, which is why we believe greater support must be made available to First Nations to assist in the development of effective management and administrative practices” said Senator Gerry St. Germain, chair of the committee. “A First Nations Electoral and Appeals Commission could assist in developing capacity in terms of governance and professional services.”

The committee called on First Nations leadership to ensure appropriate consultation mechanisms are used to make certain all community members can meaningfully contribute to the development and implementation of community-based codes.

“This report recognizes that the key to improving First Nations elections systems and citizen-centred accountability lies in fully recognizing First Nations jurisdiction over the design and control of our election codes,” said Shawn Atleo, national chief of the Assembly of First Nations, who welcomed the report. “We would like to build on the recommendations contained in this report and discuss ways we can support the capacity of our nations to re-build their own systems of governing.”

The report stated that Indian and Northern Affairs should provide specific funds to support First Nations governments in developing and implementing community-based codes and for conducting elections.

Currently, First Nations are not provided with any specific allocation for carrying out elections, and must reallocate from other priorities. This has put enormous strain on chronically under-resourced First Nation governments, said Atleo, especially for First Nations who hold elections under the Indian Act, which currently occur every two years. Read the full report and list of recommendations at www.senate-senat.ca/abor-autoch.asp .