The First Nation the federal government asked to endorse the First Nations Financial Transparency Act did not get to see a copy of the bill before it had to issue a statement in support of it, documents obtained under Access to Information laws reveal.
According to a letter from Whitecap Dakota First Nations Chief Darcy Bear dated Dec. 2, 2011, he didn’t see the Financial Transparency Act – also known as Bill C-27 – until it was introduced in Parliament Nov. 23, 2011. He was asked to issue a statement in support of it earlier in the day using background notes that left out important information.
“We did not have the opportunity to review and analyze Bill C-27 in its entirety… I do wish to emphasize that we provided our endorsement of the new Bill C-27 based on our support for the former Bill C-575,” Bear wrote in the letter.
When asked why the press conference was scheduled before the bill was introduced, Aboriginal Affairs did not provide a reason.
“Following the introduction, all First Nations leaders and community members were encouraged to participate in the parliamentary process,” the department said in an email.
The Financial Transparency Act, passed by the federal government in March 2013, required First Nations post the salaries and expenses of elected officials as well as audited financial statements that include information on band-owned businesses to their websites within four months of the fiscal year-end on March 31, 2014.
The bill is similar to Saskatoon MP Kelly Block’s private member’s bill, which was tabled in 2010. It was lost in the 2011 spring election.
Bear wrote in his letter the reason he supported Block’s bill was because it focused on reporting the salaries and expenses of chiefs and councilors and federal funding. He was concerned the Financial Transparency Act requires band-owned businesses to disclose detailed financial statements – private companies in Canada don’t have to.
Bear, who could not be reached for comment for this story, requested a to make a deputation before committee. He proposed a series of amendments – some successful.
The amendments include clearly delineating what elected officials’ salaries and expense are and limitations on what financial information band-owned businesses will be required to release so that they won’t be at a competitive disadvantage.
Bear has also has repeatedly said the 120-day reporting period outlined in the bill is too short and that bands should not have to disclose financial information to non-members. Neither of those issues were resolved.
Aboriginal Affairs was asked why it is important to disclose the information to those outside of individual First Nations communities, but didn’t provide a reason.
According to an internal document from Nov. 21, 2012, the committee’s response to Bear’s concern about making the information widely available was that it will allow investors, economists, media and the public to analyze and compare the data, like they do for other governments and departments.
“This also will lessen the burden on individual members who may not feel comfortable asking for financial information from their First Nation or pursuing court action to have it released,” the document said.
If First Nations don’t comply with the requirements of the Financial Transparency Act, the Aboriginal Affairs Minster could withhold federal dollars or terminate funding all together.
It’s a punishment some are questioning the constitutionality of.
According to documents summarizing the concerns of committee witnesses, the Canadian Bar Association — the lone critic brought in — raised concerns that if Minister went that route, the federal government may not meet its obligation to provide essential services to all Canadians.
WHITECAP DAKOTA FIRST NATION CHIEF DARCY BEAR’S LETTER
This letter, dated Dec. 2, 2011, is from Whitecap Dakota First Nation Chief Darcy Bear to Saskatoon MP Kelly Block released from the federal government’s Aboriginal Affairs department under Access-to-Information laws. It details concerns Bear has with the First Nation Financial Transparency Act, including the fact he was asked to endorse it without seeing a copy. This information was helpful to shed light on the fact that even the First Nation leader in support of the Financial Transparency Act has serious concerns with the parameters of it.
