[Witness spoke in Cree]
[English]
My name is Shannin Metatawabin. I'm from Fort Albany, Ontario, and the Mushkegowuk community has raised me. I want to say thank you to the Kitigan Zibi community for allowing us to be here today.
I'm the CEO for the National Aboriginal Capital Corporations Association, or NACCA.
In the 1980s, the government delivered an indigenous business development lending program that was plagued by 85% losses. Since that program was transferred to indigenous partners, it now celebrates a 97% repayment rate. For over 35 years, NACCA has championed indigenous entrepreneurship through financing training and resources that foster success for indigenous business owners. With over 56,000 loans deployed totalling $3.3 billion, our network of 50-plus indigenous financial institutions are committed to economic self-reliance.
A growing challenge for Canada is the prevalence of indigenous identity fraud, particularly in cases of federal procurement. Fraud diverts possible contracts and resources meant for indigenous entrepreneurs. Despite hearing in previous OGGO sessions that this is just a few bad actors, I can assure you that it is not. I feel the fraud is siphoning billions away from first nations businesses that represent less than 1% of the $22 billion the government spends on goods and services each year.
The numbers are stark, and so is the impact. Fraudulent claims of procurement drain opportunities and hinder first nations community growth, job creation and economic stability.
In response, NACCA and four other national indigenous organizations have formed the First Nations Procurement Organization, or FNPO, as a solution. FNPO is supported by the Assembly of First Nations through a resolution, and it centralizes first nations business certification through a trusted, indigenous-led process. It's also modelled by the Supply Nation, which Australia has had for more than 15 years and through which it has seen more than $4.6 billion in indigenous opportunities.
This approach respects indigenous control over business data and ensures that procurement contracts go to verified indigenous-owned businesses. Through initiatives like a national directory for certified businesses and training programs, the FNPO closes gaps in accessibility, allowing first nations businesses to overcome systemic barriers and strengthen community economies.
The FNPO is accountable to both the federal government and rights holders in indigenous communities. It is governed by a first nations board and advised by first nations leaders. It will conduct annual reviews on large scale procurement projects of over $5 million to prevent misrepresentation and assess economic impact.
We are also addressing the systemic biases indigenous entrepreneurs face. Legal barriers like section 89 of the Indian Act, which Jody talked about, make it harder for first nations businesses to access and compete for government contracts. FNPO training resources build capacity, improve competitiveness and help first nations businesses navigate obstacles effectively.
In closing, indigenous procurement is not just a business opportunity, it's a step towards sovereignty and reconciliation. This comprehensive indigenous solution offers a critical step forward in reducing fraud, increasing equitable access and providing economic opportunities to indigenous businesses.
Thank you for your time and consideration. I would now like to introduce you to Dawn Madahbee Leach, Chair of the National Indigenous Economic Development Board, to present for the remainder of my time.
Meegwetch.