THUNDER BAY — Indigenous Services Minister Patty Hajdu is under pressure to do more to address concerns that lax oversight has allowed non-Indigenous businesses to qualify for federal contracts under an initiative intended to support Indigenous-owned firms.
The Anishnawbe Business Professional Association (ABPA) is now calling on Hajdu to activate a proposed National First Nations Procurement Authority.
Jason Rasevych, president of the association, pointed Wednesday to recent allegations of Indigenous identity fraud, saying they have "damaged trust and hindered reconciliation efforts."
Under an existing multi-billion-dollar procurement program, the federal government targets five per cent of total annual expenditures to Indigenous companies, and maintains a list of eligible firms in an Indigenous Business Registry.
"Controversies, including issues with ArriveCAN, the resignation of (Employment Minister) Randy Boissonnault from the cabinet over claims of Indigenous heritage, and the swift removal of 1,100 companies from the registry by Minister Hajdu highlight the need for reform," ABPA said in a news release. "The lack of transparency and consultation with First Nations leaders and mandated Indigenous organizations in this process has further fueled concerns about the government's approach to Indigenous procurement."
This week, the medical supply company co-founded by Boissonnault was suspended from bidding on contracts with the government.
Last week, Hajdu told a House of Commons committee the government audits the Indigeneity of companies on the Indigenous Business Registry (IBD) every two years, and that 1,100 companies were removed from the list in 2022.
As of November 18, 2024, there were 2,945 businesses listed on the IBD.
In an interview, Rasevych said it's essential for Indigenous leaders and organizations across Canada, including Northern Ontario, to have input into the screening process.
"The Anishnawbe Business Professional Association has a role to play in the inclusion of Indigenous businesses in the overall economy in Northern Ontario across five treaty areas. So when we look at the federal procurement system, and even the provincial one, we've got to better understand who are on these registries. How are they complying with providing their Indigenous ancestry verification? Who is verifying them? And how are they maintaining that ownership structure?"
Under federal guidelines, qualifying firms are supposed to be at least 51 per cent Indigenous-owned.
"We need a better, independent process related to the review of federal procurement in Northern Ontario," Rasevych said, in order to determine whether the rules have been skirted in the awarding of any contracts in this region.
The establishment of a National First Nations Procurement Authority was first proposed by the National Aboriginal Capital Corporations Association (NACCA), a network of over 50 Indigenous financial institutions.
Rasevych said its expertise in verifying Indigenous identity will ensure transparency and accountability, and restore confidence in the system.
"NACCA welcomes the support from the ABPA," said CEO Shannin Metatawabin, adding that the new authority is integral to ensuring the impact of federal contracts "reaches authentic Indigenous businesses and communities."
The Nishnawbe Aski Development Fund is also endorsing the proposal.
CEO Brian Davey said it will create jobs and generate economic activity within First Nations communities in Northern Ontario and across Canada while reducing dependence on government assistance.
Rasevych, who wants Ottawa to move quickly to ensure the procurement authority is funded for the start of the next fiscal year, was in the capital on Wednesday meeting with staff from Hajdu's department.
Hajdu's press secretary, Jennifer Kozelj, said Indigenous Services is working with Indigenous partners and organizations and is exploring all options.
In a statement in response to an inquiry from Newswatch, she said: "There is a role for the government to play to create a fair economy for everyone, and with that comes transparency on all levels. The Minister of Indigenous Services is actively engaging with First Nation, Inuit and Métis partners when it comes to the future of economic opportunities and safeguarding Indigenous interests. This includes a new Transformative Indigenous Procurement Strategy and a co-development table that was launched earlier this year. We appreciate partners sharing ideas and ways to improve existing strategies to better serve Indigenous businesses and communities."
NOTE: This story was updated at 11:55 a.m. on Nov. 28 to include a statement from Minister Hajdu's office
