All politicians must disclose basic financial information - including First Nations politicians
This column was originally printed in the National Post on Jan. 27, 2015
There are two options when trouble appears on the horizon: find a way to avoid it, or make a plan to endure it. Indigenous and Northern Affairs Minister Carolyn Bennett is facing such an issue, and she has only a few months to address it.
Bennett recently suspended enforcement of The First Nations Financial Transparency Act. The act requires First Nations leaders to publish their salaries, expenses and the band’s basic financial information online. More than 90 per cent of First Nations have complied. The previous federal government withheld non-essential funding from the few who did not and took legal action to enforce the legislation, but Bennett has handed back the money and called off the lawyers. The deadline for the next disclosure is at the end of July, so time is short.
“We will work in full partnership with First Nations leadership and organizations on the way forward to improve accountability and transparency,” wrote Bennett in a statement released just before Christmas. She did not say how she hopes to improve upon the three key pillars of the current legislation.
First, the legislation requires First Nations chiefs and councillors to disclose their salaries. Those disclosures show that Boneparte Indian Band Chief Randy Porter served without any pay and Kwikwetlem First Nation Chief Ron Giesbrecht received $930,793 in 2013-14. The legislation could be expanded to include salaries from regional and national chiefs’ associations, but Bennett has to, at the very least, maintain the current salary disclosure requirements.
Second, the legislation also requires First Nations leaders to disclose their expenses. Many First Nations leaders didn’t have any expenses, while some racked up significant bills, such as O’Chiese First Nations Chief Darren Whitford, who claimed more than $100,000 worth of expenses. Again, there’s room for improvement ,as the current legislation doesn’t require leaders to justify their expenses or show receipts. But again, Bennett will have to ensure expense totals are publicly tallied.
Which leads to the third requirement: the disclosure of the band's basic financial information. The Assembly of First Nations criticized the legislation because it “forces First Nations to disclose details about own source revenue from band-operated businesses and enterprises that hurt their ability to compete with other businesses.”
The chief who led the legal fight against Ottawa makes his point more bluntly. “It’s always about this discrimination and sorry to say, for me it’s racism,” said Chief Wallace Fox of the Onion Lake First Nation. “It’s discriminatory legislation because no other race is subject to this legislation in Canada except Indian people.”
Chief Fox is simply wrong. Even though more than 500 First Nations have disclosed these basic financial statements, no examples of economic injury have been cited. Further, it’s standard for government-owned companies to provide basic financial accountability to the people. Canada Post’s annual report is 142 pages and B.C. Hydro’s annual report is 106-pages long. Canada Post President Deepak Chopra makes about half a million dollars and B.C. Hydro’s entire executive team have their salaries posted online. It would be foolish for government-owned companies to attempt to limit accountability to just people who live within their borders.
Bennett cannot allow a few First Nations to hide basic financial information that every politician and Crown corporation releases as a matter of routine. Bennett has taken on a herculean task of appeasing Chief Fox and a few others who are trying to hide information, but she won’t succeed without capitulating on the three current accountability requirements. And the clock is ticking: there's only a few months until the next deadline for disclosures.
There is only one realistic alternative: begin enforcing the current legislation. Bennett cannot allow weakened accountability requirements or endless discussions to leave people in First Nations communities in the dark after the disclosure deadline this summer.