The Assessment and Investigative Services Branch of Crown Indigenous Relations and Northern Affairs Canada (CIRNAC) and Indigenous Services Canada (ISC) have commenced a forensic audit of funding provided to the community of Lake St. Martin, also called Obushkudayang.
ISC won’t say wouldn’t say what triggered the audit, other than that an allegation or complaint was received.
“We take allegations and complaints regarding the misuse of public funds very seriously,” says Eric Head, a spokesperson for ISC. “We have a process in place so that allegations and complaints are examined properly and that appropriate action is taken.”
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Government records show the band is several years behind in filing financial statements and remuneration as required by the First Nations Financial Transparency Act (FNFTA).
The band was informed of the audit on Feb. 19 that federal funding received from April 2022 to current would be part of the review.
Head says Lake St. Martin has received nearly $88 million from ISC since 2022.
In February, Lake St. Martin filed expense reports for 2019-20 and 2020-21, but financials to 2025 are not posted. Lapses in reporting do not trigger a forensic audit, Head says.
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The community, 225 kilometres northwest of Winnipeg, has 3,000 members, 1,700 who live on-reserve.
A person who answered the phone at the band office told Global News that Chief Christopher Traverse isn’t reachable by phone and doesn’t keep set hours at the band office. Traverse did not respond to messages left for him.
The Assessment and Investigative Services Branch of CIRNAC and ISC completed five forensic audits in 2024-25, including one that found $34 million in questionable transactions by the Federation of Sovereign Indigenous Nations in Saskatchewan.
This story on Lake St Martin and forensic audit speaks to a bigger issue with the lack of accountability at Indigenous Services Canada (ISC). ISC never acts on mismanagement and theft of funds by Chiefs and Councils. There are no rules to enforce nor consequences to suffer! At the very least, members of Chief and Councils ought to be banned from ever running again for office. Rampant mismanagement and misspending has gone on by Chiefs and Councils since Trudeau removed third party management as a measure to correct First Nations misspending of funds. A huge red flag went up when the father of Jordan Anderson complained of misspending of Jordan’s Principle funds. And was anyone charged for the private use of JP funds?? Or for any of the misspending? Nope!
ISC should be abolished!
Why are they allowing an election when 88 million is unspoken for? Shouldn’t the current chief and council be suspended from running until the conclusion of the Audit?
Why don’t they question acting chief Brad Beardy?
Since Chris was in the news Brad’s quorum took over.
Non reporting should automatically trigger an audit, not leave it for years and a complaint to do an audit. This is public money that has to be accounted for immediately. No money money should be further dispersed until the audit is completed.
I just came to see if Global left the comments open for once lol. Let’s see for how long
Our tax dollars at work…
I sincerely hope that if they do find something, it puts us back the transparency act in play. Would rather see the funding creating wealth rather than creating wealthy recipients.