OTTAWA – Six months after a scathing independent audit of Attawapiskat First Nation found a lack of documentation for tens of millions of dollars in federal funding, the government still doesn’t know if any of the money should be paid back.
The Department of Aboriginal Affairs confirms it is undertaking “additional work” relating to the Northern Ontario reserve’s finances, but can’t yet say if a more detailed audit will take place.
“In light of the fact that 82 per cent of the transactions reviewed are missing, supporting documentation and additional work was required to rebuild the First Nation’s financial picture,” spokeswoman Claudia Fournier said in an email. “That work is ongoing and will help determine if a forensic audit is required.”
Fournier added the ongoing work “will help to determine what/if funds are required to be re-paid.”
At the height of Attawapiskat Chief Theresa Spence’s liquids-only protest diet on Victoria Island, a copy of the Deloitte and Touche LLP audit was leaked to the CBC and then officially released by aboriginal affairs on Jan. 7.
The audit, which tracked transactions, found there was little or no documentation for $104 million dollars spent by Attawapiskat and intended for services such as housing, sewage and education.
“There is no evidence of due diligence in the use of public funds, including the use of funds for housing,” the auditors wrote. At the time, Spence’s supporters called the audit’s release “a distraction” from the true issues.
When reached at her home in Attawapiskat, Spence said she had no comment about the audit process or whether she was cooperating with the government on their attempts to follow up.
“I’m not going to provide comment on that because we’re still working on it,” she said. “I don’t have all the details in front of me.”
The Deloitte audit spanned between April 2005 and November 2011. Spence was elected chief in 2010 but served as deputy chief since 2007.
NDP MP Charlie Angus, who represents Timmins, Ont., said if money was wrongly taken, it should be recouped. But he said the audit failed to mention a number of changes had been implemented on the reserve during the audit.
Angus said he doesn’t believe the Conservative government wants to get to the bottom of it with a more detailed forensic audit.
“I don’t think they’re really interested. I think they got what they wanted,” he said.
Internal correspondence obtained by Global News shows the release of the audit was originally supposed to be delayed in advance of the Jan. 11 meeting between Prime Minister Stephen Harper, Assembly of First Nations National Chief Shawn Atleo and other senior officials.
Spence had pushed for the meeting, along with Governor General David Johnston, throughout her six-week protest, which coincided with the Idle No More movement regarding native rights and budget implementation. A separate meeting with Johnston was held at Rideau Hall after the Jan.11 meeting instead.
On Jan. 4, aboriginal affairs communications officer Chris St. John wrote in an email to fellow official Mary Hand:
“In light of the announcement of the meeting on the 11th of Jan., the release of the audit results have been postponed. I will keep you posted regarding an eventual date of posting as we hear more,” he wrote.
When the audit was leaked to CBC which posted a story on Jan. 7, officials were left scrambling.
“Hi Chris, just following up to see if your dept has issued the news release and your audit report. As you may be aware, there’s been media coverage on this audit already,” wrote Trinh Phan, a senior communications executive at Health Canada, to St. John, at 10 a.m. on Jan. 7.
St. John also questions how the Privy Council Office, which provides objective policy advice and information to support the prime minister and cabinet, got a copy of the audit.
“Good morning Anne, I was just about to call you back with regard to your voicemail when Sylvie informed me PCO got their hands on a copy,” St. John wrote to Anne Scotton, listed as the Chief Audit and Evaluation Executive at aboriginal affairs, on Jan. 3.
“I’m not sure how, it didn’t come through us in comms, perhaps the Minister’s Office?”
He went on to say the 90-day deadline for release of the audit was Jan. 24.
Angus said the release of the audit in the middle of Spence’s protest was politically motivated.
“I’ve seen a lot in my life, but to think that this just happened to get out there – nah. It’s just not possible,” he said.
He said the fact that the Privy Council Office was interested shows the government was looking to control a high-stakes situation.
“It’s extraordinary,” he said.
“They suddenly start looking to find an audit, to get their hands on it, the audit gets released. And it very much changed the national discussion on what was happening.”
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