Vancouver Sun : Fraud Nepotism Corruption Rife on Indian Reserves (1999 article)

Indian women say fraud, nepotism rife on reserves
Vancouver Sun
Tuesday, April 13, 1999
Byline: Dianne Rinehart

Recent accusations of electoral fraud and nepotism against the chief of the tiny Scowlitz reserve in the Fraser Valley are just the tip of a monstrous iceberg of fraud, nepotism, intimidation and theft on Canadian reserves, according to a number of aboriginal women.

The women, who independently contacted The Vancouver Sun over the past two months, are battling what they say is massive mismanagement of taxpayers' money by band chiefs and the federal Indian affairs department.

And they are supported in their accusations by Taiaiake Alfred, the director of indigenous governance programs at the University of Victoria.

In his just-published book, Peace, Power, Righteousness: An Indigenous Manifesto, Alfred said he argues ``there's almost a complete lack of accountability'' under the system of government established by the Indian Act, and that the system makes the band governments answerable to Ottawa -- where they are answerable at all -- rather than to their own people.

``That's the inherent corruption.''

Alfred argues that most chiefs try their best. But, he said the system is ripe to be taken advantage of by ``people who are corrupt and greedy and selfish, because of the lack of accountability.''

The women who contacted The Sun all say the department's policy of transferring the administration of social programs -- as a preliminary step to self-government -- is so mismanaged and misdirected that it threatens the democratic rights and Freedoms of native Indians.

The money -- $6.4 billion this year for social support systems such as welfare, housing and education -- is simply not trickling down to rank-and-file natives on or off reserves, they say.

``There's no financial accountability, no democracy and no equality on First Nations reserves,'' said Leona Freed, a Dakota Plains native from Manitoba who established an organization called the First Nations Accountability Coalition four years ago.

Freed, a mother of six and grandmother of seven, who lives off reserve working 10-hour days at an onion-packaging plant and still finds time to organize, wants the government to redirect monies ``to us at the band level, so it doesn't go through chiefs or Indian affairs.''

Wendy Lockhart Lundberg, a status Squamish band member living off reserve in Vancouver echoes Freed's concerns, although the two have never spoken.

``It seems to me that Canadian citizens' tax money is going to the bands with no accountability and no one is checking to see that it goes to the people and programs for which it is intended,'' said Lockhart Lundberg.

Meanwhile, Meaghan Walker, a Somena from the Cowichan reserve near Duncan, is so frustrated she is attempting to determine if there is support for breaking the Somena away from the five-band Cowichan reserve leadership and establishing their own government.

``There's absolutely no accountability [in the band system],'' said the college-educated Walker, who says she has contacted Indian affairs, the solicitor-general and the RCMP about problems she has witnessed -- all to no avail.

Band councillor Dora Wilson said she hadn't heard about any complaints, so she couldn't comment.

The women all cited similar complaints in a series of interviews with The Sun.

They say:

- They are unable to obtain band financial statements and budgets to see where the money is being spent.

- They believe band chiefs and administrators are overpaid, while others on reserves live in poverty and are denied medical and educational help.

- They are tired of watching band council members, chiefs and administrators spend money on what they believe are travel junkets, while serious aboriginal health and social concerns remain unresolved for lack of program funding.

- They resent the huge sums being paid to band lawyers and consultants while band members live in poverty.

- They believe some band councils are run like family oligarchies, with plum, tax-free administrative jobs going to friends and family.

- Some band councils are continuing to deny benefits and housing on reserve to native women who lost their Indian status after marrying non-native men, despite federal legislation reinstating the women's status.

- Many band elections are not democratic and many band members vote for current chiefs out of fear and intimidation, ignorance of their rights, or simply because they are paid to.

- There is an atmosphere of intimidation in which those who complain about band leadership stand to lose access to social service benefits, such as money for post-secondary education or even the right to live on the reserve.

- They have been unable to get help from Indian affairs in battles with their bands for accountability.

Their accusations fly in the face of claims by Indian Affairs Minister Jane Stewart and her department staff, who insist the department monitors democratic elections on the reserves and audits financial statements.

But critics say the department is well aware of the problems, and is white-washing them to ensure there is no backlash against Stewart's self-government policies.

John Watson, the B.C. regional director for Indian affairs, insists a program was initiated several years ago to ensure band accountability. Each band is audited and that information -- including band council salaries and travel expenses -- must be published and made available to band members, he said.

Watson said bands must post information telling band members the records are publicly available. Chartered accountants who audit band records for the federal government, must certify the information has been posted, he said. The new measures also require bands to set up an appeal process and explain how decisions are made.

``Transparency, redress and disclosure are the three pillars of the process.''

Told of the women's complaints, Watson said: ``I would be naive to believe there's 100- per-cent compliance.'' But, he added, there are very few complaints, and anyone who has them should call him.

Alfred, however, said the women who contacted The Sun are not alone in their view that something needs to be done.

``These women are expressing a common complaint which is that they . . . have no way to access information and no legal recourse with the government in their community.''

Stewart, who was travelling on business, was unavailable for an interview

But Freed said the minister is not aware of the problems on reserves because she won't speak with the rank-and-file band members.

``She's a hopeless case. She will work only with aboriginal leaders.''

Audrey Huntley, a member of the Aboriginal Women's Action Network in Vancouver, agreed Stewart deals only with band elites.

``The issue goes back to how the band council system was created,'' she said. ``It's a deal between Indian Affairs and an elite leadership. . . [that] works for a very few number of individuals. There are huge discrepancies between income and living conditions of the leadership and the membership.''

But Watson maintained the women may simply be coming up against what anyone living in a democracy does: bureaucracy.

``Sometimes. finding out and accessing redress is difficult. People don't know what to do.''

Watson also said he is surprised it is women who are complaining, because he believes native women have more power in their communities than their non-native counterparts.

But Gail Sparrow, the former chief of the Musqueam band scoffs at that.

``It's male-dominated governments and most of them don't have an education,'' she said of her experience with the 220 chiefs represented on the First Nations Summit. Female chiefs represent their bands at these meetings, she said, ``but when you go home to your own community you're still dealing with the men who believe they are the ones who should [have] control.''

Sparrow, who held office for two years, agrees with the other women that band councils are ``run like a popularity contest,'' with the best band jobs going to family and friends, regardless of their qualifications.

But Sparrow said she believes band governments face a clash with native women, if they don't clean up their act.

``Like the phoenix rising from the ashes, we're spreading our wings and the men are all flapping around and they don't know what to do to us.''