Feds say Federation of Sovereign Indigenous Nations still on the hook for $12M

A political organization that lobbies on behalf of 74 First Nations in Saskatchewan has been ordered to pay back millions to the federal government, APTN News has learned. The Federation of Sovereign Indigenous Nations (FSIN) has been told to repay the federal government $12.3 million in transactions that were determined to be ineligible following Indigenous Services Canada’s review of the forensic audit of funding. APTN News has obtained a copy of a letter from Indigenous Services Canada to the FSIN, date October 14, 2026. The request for repayment follows a review of the FSIN for the period of April 1, 2019, to March 31, 2024 and according to the letter is “now considered a debt owing to the Crown” according to the letter. The initial forensic audit found over $34 million in “questionable, ineligible or unsupported spending.” FSIN Chief Bobby Cameron. Photo: APTN. According to that audit, $23.4 million in COVID-19 funding was been deemed questionable, ineligible or unsupported, in part because Indigenous Services Canada was unable to “obtain complete supporting documentation to determine eligibility,” according to the summary. The audit also called into question funding used for payments to a former employer, administration fees, the new FSIN office building and more. The letter from ISC sent to the FSIN Wednesday said “as outlined in section 25 of your funding agreement, please contact us within 30 calendar days of this letter or provide payment in full to the Receiver of Canada.” The letter states “ISC is seeking immediate repayment in full by November 13, 2026. Should repayment not be received, ISC would begin to set-off against any funding currently payable to the FSIN. Canada will be formalizing this debt via a Statement of Claim.” According to the contribution agreements listed in the letter, the money that ISC is asking to be repaid was provided to the FSIN for community infrastructure, child and family services and health promotion & disease prevention. Late on Wednesday, the FSIN responded with a statement saying it rejects the forensic audit decision and says it has launched legal action. The statement says “the FSIN participated fully and in good faith throughout the review. Following extensive line-by-line discussions with an ISC-appointed negotiation team, the parties had substantially narrowed the matters in dispute by June 12, 2026, where ISC representatives confirmed that all PPE purchases, comprising almost $8 million of the $12.376 million, were substantiated as purchased, delivered and removed from the list of ineligible or questionable expenditures.” The statement goes on to say “we are surprised that this would be added back on despite the ample evidence provided and the advice of their own ISC staff. The remaining $4.4 million in expenditure is mainly related to administration fees for which ISC has failed to produce policies to support their position.” FSIN says its staff has dealt “directly and professionally with ISC rather than attempting to negotiate these matters through the media despite Minister Mandy Gull-Masty only communicating to FSIN through the media after numerous attempts to reach her by phone and email.” “ISC may have concluded its’ process, but this matter is not concluded for the FSIN,” said FSIN Chief Bobby Cameron, in the statement. “Our staff have cooperated, provided the records requested and defended the decisions made through our own governance processes. We remain confident that when this matter is subjected to a fair and independent review, that all expenditures will be proven eligible and the allegations proven false.” APTN News has reached out to the FSIN for comment but has not heard back. Continue Reading