Indigenous procurement practices are being exploited by "token Indians" and shell companies, a director of the Assembly of First Nations warned MPs. Blacklock's Reporter says Joanna Bernard, New Brunswick Regional Chief, testified before the Commons government operations committee about contractors falsely claiming indigenous status to benefit from federal set-asides meant for indigenous-owned businesses.“There have been token Indians,” Bernard testified. “I am sorry to say you can pick up someone on the side of the street if they are indigenous. They become that token indian and there is no qualification needed for that indigenous person.”Bernard highlighted the need for stricter verification to ensure that indigenous contractors are genuinely involved in business operations, rather than simply being paid to lend their names. “This is huge,” she emphasized, calling for safeguards to ensure that indigenous businesses have actual ownership and operational control.First Nations status is determined by descendancy from original Treaty members, and the Métis National Council requires claimants to be accepted by the Métis Nation. However, Bernard noted that despite these criteria, federal contractors often claim indigenous status with little oversight. “Anybody can walk in the door and say, ‘I’m Inuit,’ ‘I’m Métis,’ or ‘I’m First Nation’ without any verification,” she said.The committee is investigating after a prominent contractor, Dalian Enterprises Inc. of Ottawa, was suspended. The company, whose owner falsely claimed Ojibway heritage, secured 675 federal contracts over two decades, with payments last year totaling $16.9 million.Philip Ducharme, vice-president of the Canadian Council for Indigenous Business, also testified, expressing shock at the rise of “pretendian” vendors — people falsely claiming indigenous ancestry to secure government contracts. “It is shocking that it’s happening and it is sad,” Ducharme said, reflecting on his own experiences of discrimination. “People are taking advantage of it.”Bloc Québécois MP Julie Vignola (Beauport–Limoilou, Que.) stressed the importance of ensuring indigenous communities benefit from federal contracts, lamenting that some companies are merely fronts for non-Indigenous businesses. “Unfortunately, there seem to be businesses that are being used as a front,” she said, calling for reforms to prevent exploitation.The federal government’s indigenous set-aside program directs 5% of its $34 billion annual contracting to iindigenous-owned businesses, but MPs heard that claimants are not properly verified. Bernard and Ducharme both urged stronger enforcement to protect the integrity of the program and ensure genuine indigenous participation.
