Thank you for having me here today.
I am here to talk about financial accountability and transparency. I would like to start by looking at the issue of access to financial information and our experiences. First, we support the legislation, Bill C-27, based on the fact that every first nations band member has a right to access financial information and it should be given in a reasonable timeframe. Information should be provided free of charge, and penalties should be put in place if first nations do not comply.
I will tell you our experience and the reality of trying to access information. ATIP forms from me and from other band members have been ignored; requests for information have also been ignored by trustees of our treaty land entitlement; and members are subjected to intimidation tactics such as fearmongering, public attacks, and attempts to destroy a person's credibility.
We make a number of recommendations. The legislation must have statements that include the protection of individual freedom to access financial information without persecution from the chief and council. An annual audit should be distributed no later than 120 days after the end of the fiscal year. The federal government should be present during the presentation of annual audits. A framework for financial information should be created that is accessible on the website and is easily understood by band members.
We have looked at chief and council remuneration and income from other sources. We support legislation that will put into law the requirement that chief and council be held responsible to fully disclose sources of income, not only from the band, but from other sources. We call for a full disclosure by all federally funded organizations in regard to honorariums, travel, bonuses, and per diems paid to chief and council. Chief and council should be held responsible to disclose all expenditures made on their behalf. Failure to do so should be classified as red-collar crime.
On the issue of band council resolutions, BCRs, in 2009 the chief and council signed a BCR that stated that other sources of income were to go to band support, but the evidence says otherwise. This form of corruption has to stop.
We have looked at the subject of remuneration of boards. Boards are all appointed by the chief. The injustice is that the chief controls all of these boards on the reserve.
Accountability must include proper expenditures of federal funds that are allocated for band programs. The minister must ensure that education and housing moneys are spent for intended purposes. The chief and council, according to the last audit, took over $2 million of education funding to offset the band's deficit. Once the audit comes in for this year, it's going to show I think that the band took over $4 million.
Our first nations people do not have a redress mechanism in place to call for accounting of expenditures of education and housing moneys. First nations people do not have a redress mechanism in place to question and change this practice. We call for a national, federal hearing on the treatment of first nations people by their government, chief and council.
We call for national, federal public hearings to provide an opportunity for first nations to voice concerns.
We have looked at the use of band funds for partisan politics. The chief on our reserve used band funds to pay a personal legal bill in the amount of $22,772.76. Court costs were paid on behalf of members who stole furniture during the 2007 election. In 2008, a position was made up for a Peguis School Board trustee that added $26,000 on top of her salary as trustee. There is no evidence of any work done. Federal funds were used for personal media coverage to promote the chief. Legislation should be enacted to make it illegal to use band funds for these types of political favours. This type of spending is clear malfeasance and should be treated as such.
There needs to be accountability in the election process for chief and council. Electoral officers should be appointed by a third party who has no vested interest.
I will now summarize financial matters and transparency issues.
Presently, in many situations, there is no voice for the grassroots people. There needs to be an advocacy group that they can enlist for help in calling for financial accountability and transparency.
The chief uses band funds to persecute/prosecute his own people. First nations people do not have the funds or the ability to defend themselves because in most cases they have lost their jobs for speaking out.
Those who agree with the chief's leadership are well taken care of. In some cases, they have salaries or honorariums from three or four different sources. One example is former Councillor Lloyd Sinclair, who collected a yearly salary of $64,000 as the arena manager, even though we've had no arena since March 2007, when it burned down. He also sits on various boards and as a trustee on our TLE and our surrender claim.
Lawyers and consultants are charging the band exorbitant fees. This type of corruption must stop, and those in power must be held responsible for the blatant misuse of federal funds. It has been the practice of Aboriginal Affairs to allow first nations to pay back funds that were deemed to have been misspent. In the end it is the people who are powerless, who end up feeling the brunt of the mismanagement of funds.
Leadership has to be held accountable.
Thank you.