Concerns are mounting over contractors falsely claiming indigenous status to secure federal contracts, a practice Ethics Commissioner Konrad von Finckenstein described as "of great concern" during testimony before the Commons public accounts committee. Blacklock's Reporter says the issue, which involves businesses misrepresenting their Indigenous identity to benefit from a federal set-aside program, is under scrutiny, though it falls outside von Finckenstein's jurisdiction.“It is something that needs to be addressed and dealt with,” von Finckenstein said, acknowledging the gravity of the situation. However, he pointed out that his office does not have the authority to take action against these so-called "Pretendian" vendors.The Department of Indigenous Services revealed on March 7 that it is in the process of verifying the indigenous status of all contractors listed as Indigenous in the federal Indigenous Business Directory. This directory includes approximately 2,600 companies, with five percent of federal contracts reserved for those that are majority-owned by Indigenous shareholders.New Democrat MP Blake Desjarlais, who is Métis, expressed his dismay over the exploitation of Indigenous identity for financial gain. “As an indigenous Member of Parliament myself, I am troubled by what has been a consistent and ongoing effort to use Indigenous identity as a tool,” Desjarlais said. He pressed von Finckenstein on whether this was a concern, to which the Commissioner replied, “Yes, of course, it’s of great concern.”Von Finckenstein further explained that if the misrepresentation amounts to fraud, it could be a criminal offense. “If it truly is fraud then it becomes a criminal offence,” he said. “If it is just misrepresentation over something it may not amount to criminal, but it still should not be allowed.”The issue gained heightened attention following the case of Dalian Enterprises Inc., an Ottawa IT consultant that secured 657 federal contracts over two decades. The company's CEO, a former Department of National Defence employee, had falsely claimed to be a descendant of an Ojibway chief, prompting criticism from lawmakers.“Dalian’s identity as an indigenous company as part of the set-aside for indigenous procurement is obviously absurd and a manipulation of the intention of the policy,” said Conservative MP Garnett Genuis. He criticized the company for subcontracting the work without creating job opportunities for Indigenous people, which he argued was the true intention of the policy.Deputy Public Works Minister Arianne Reza, in her March 7 testimony, condemned the practice as “wrong” and “a terrible situation.” She confirmed that the department would conduct further audits to verify the legitimacy of indigenous claims.
