An audit into federal grant spending on a Saskatchewan First Nation found financial records were deliberately destroyed, making it impossible to verify how millions in taxpayer dollars were used, according to internal government documents.
Auditors hired by Indigenous Services Canada said they were unable to investigate most of the allegations tied to the Makwa Sahgaiehcan First Nation in Loon Lake, SK, after records disappeared. The community, with a population of 1,815, received $74.6 million in federal transfers over five years, according to Blacklock’s Reporter.
“We understand from speaking with First Nation representatives there are concerns that documents were intentionally taken from the First Nation and destroyed or never obtained,” wrote Pricewaterhouse Coopers in its forensic audit. The firm said it had to rely heavily on interviews with people linked to the allegations due to missing files.
The audit was initiated at the request of the First Nation Council in response to complaints of financial mismanagement. In total, 29 allegations were examined, with six confirmed, six dismissed, and 17 left unresolved due to a lack of documentation.
Chief Ronald Mitsuing raised the issue with federal officials during a December 2019 meeting about the community’s suicide crisis. A confidential source also flagged concerns to the government’s assessment and investigation unit.
The final audit report, which ran 52 pages, was heavily redacted but confirmed $523,784 in questionable spending where no proof of eligibility was provided.
Federal spending on indigenous programs doubled from $10.3 billion in 2017 to $23.3 billion. The Trudeau cabinet replaced the Department of Indian Affairs with Crown-Indigenous Relations and Indigenous Services that year. A 2018 Library of Parliament report found staffing in the two new departments jumped by 49%, from 4,600 to 8,300 employees.
“That’s a lot of extra money,” said Senator Scott Tannas. “Canadians want to make sure that gets into the hands of indigenous people and doesn’t support a bloated bureaucracy in Ottawa.”