‘It’s not right’: Indigenous leaders call on Ottawa to clean up procurement system

Indigenous leaders caution the Liberal government’s expansive interpretation of Indigeneity in Canada has added to confusion in who qualifies for a multi-billion dollar procurement program intended to boost First Nations, Métis and Inuit businesses.

Prime Minister Justin Trudeau’s governments have made reconciliation a central theme in Ottawa. But their work with Indigenous groups not recognized by other, longstanding nations has complicated matters for rights-holding First Nations, Inuit and Métis communities, according to a leading Inuit voice.

Natan Obed, the president of Inuit Tapiriit Kanatami (ITK), accused successive federal governments of “using” and “funding” Indigenous organizations to their own advantage as Canada continues to grapple with the project of reconciliation.

The Government of Canada, whatever party is in power, “uses Indigenous organizations and its ability to fund Indigenous organizations … to its own advantage,” Obed said.

“It is just strategic maneuvering by successive governments on ensuring that they can, in some ways, co-opt the Indigenous rights-holding voice, mislead Canadians about the relationship that the government has with First Nations, Inuit and Métis, and ultimately destabilize our systems of governance.”

Obed made the comments in relation to the findings of a joint Global News investigation into the Procurement Strategy for Indigenous Business (PSIB), a multi-billion dollar program established in 1996 in an effort to give First Nations, Inuit and Métis companies better access to the federal procurement process.

The investigation, done in collaboration with researchers from the First Nations University of Canada, found significant loopholes in the program and decades of limited vetting by Ottawa to determine if a business is, in fact, Indigenous-owned and -operated.

The PSIB recognizes groups whose claims to Inuit or Métis status are disputed by other Indigenous groups and, in some instances, Canadian courts. Obed said that by taking a broad view of what organizations and collectives truly represent Indigenous Peoples, Canada has “been in the business of creating Indigenous Peoples.”

Who does and does not qualify as Indigenous remains a thorny issue, and is in dispute even among First Nations, Métis and Inuit communities. But the PSIB takes a very broad interpretation of who qualifies for preferential access to federal contracts.

One way companies can qualify for Indigenous set-aside contracts – the program earmarks at least five per cent of departments’ procurement for Indigenous-owned and -operated companies – is membership in the Congress of Aboriginal People (CAP), or any other federally “recognized” Indigenous organization in Canada.

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CAP is affiliated with a number of groups, however, whose claims to Indigeneity are disputed, including “eastern Métis” groups in Ontario and Québec, as well as “southern Inuit” groups in Labrador.

Obed, who has been a frequent and prominent interlocular with Prime Minister Justin Trudeau’s governments over the last nine years, strongly rejected CAP’s position on “southern Inuit.”

“The Congress of Aboriginal Peoples is not a rights-holding institution. It does not represent Inuit in any way, because it doesn’t have the democratic structure to be able to do so,” Obed said in an interview with Global News.

“We reject any notion that you can self-identify as an Indigenous person or as an Indigenous business and be eligible to this particular (program),” Obed said.

Elmer St. Pierre, CAP’s national chief, defended their association with “eastern Métis” groups in a recent interview with Global News.

“They’re our people,” St. Pierre said. “We’ll always work with (groups in) Labrador and Québec.”

But CAP’s national vice-chief, Kim Beaudin, said that the organization still has concerns about the federal government’s procurement program and the potential for non-Indigenous companies to exploit loopholes in eligibility.

“To check off a box, and actually for the federal government to allow that to happen, it’s not right,” Beaudin said in an interview. “That shouldn’t be happening.”

The Canadian Council of Indigenous Business (CCIB) maintains its own list of certified Indigenous-owned businesses operating in Canada. While there is overlap between CCIB’s list and the federal government’s Indigenous Business Directory, CEO Tabatha Bull said her organization does its own vetting before certifying a company as Indigenous-owned.

“If a business or anyone questions somebody that we have that is a certified Indigenous business, we look at those very carefully,” Bull said in a recent interview.

“We review the application, we ensure that they have a membership card. In some cases, we do call the community to ensure that they are a member and that their card is valid.”

There is also an overlap between the CCIB’s list and CAP’s membership. Like the federal government, the CCIB considers membership in CAP towards eligibility to certify a business as Indigenous-owned and -operated.

NDP MP Blake Desjarlais said there is an immediate need for the government to verify that all existing contracts under the PSIB are actually going to Indigenous firms.

Any instance where companies do not provide proof of their Indigenous ownership and control should be investigated immediately, Desjarlais said in an interview.

“On the parliamentary side of things, it is worth an investigation so we can hear from the victims about the impact of this,” Desjarlais told Global News.

“We know the problem really well, and we know who has benefited really well. But what we’re not hearing in any of this is the victims, those Indigenous businesses that … come from some of the worst economic poverty in this country.”

“For them to still want to give to Canada, to build this country, to offer their expertise and knowledge and leave it better than how they found it is immensely admirable … Those persons (who) have been denied access to these programs because of what’s taking place are the real victims in all of this,” Desjarlais added.

Global News requested an interview with Indigenous Services Minister Patty Hajdu for this story Thursday morning. Hajdu was unavailable for an interview as of Friday morning.

“We hear the concerns around who should benefit from the strategy and how,” wrote Simon Ross, Hajdu’s director of communications, in a written statement.

“At the core of the issue is once again the Government of Canada deciding who is Indigenous and who’s not. That shouldn’t be the case anymore.”

Ross added that there are “ongoing discussions” with unnamed Indigenous partners to manage the Indigenous Business Directory – the database of suppliers federal departments rely on for the PSIB program.

“It’s crucial we reinforce and protect the Indigenous procurement strategy. This is a powerful tool to advance economic reconciliation, making sure that everyone has a fair chance to succeed,” Ross wrote.

Global also requested an interview with Jamie Schmale, the Conservative Party’s critic for Indigenous Services Canada. In response, a Conservative Party spokesperson sent a two-paragraph response that attacked Trudeau’s government for “corruption.”

The PSIB program operated for almost 20 years before Trudeau took power in 2015, including nine years under former Conservative prime minister Stephen Harper’s governments.

Despite that fact, Conservative spokesperson Sebastian Skamski said it’s “no surprise” the PSIB is “rife with fraud and abuse.” Skamski said the comment was attributable to Michael Barrett, the Conservative’s critic for accountable government.