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First Nations should step up to take part in writing itLast updated 43 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Men’s Traditional dancer Carson Monias from Heart Lake First Nation, takes part in the maskêkosihk Traditional Pow wow, at the River Cree Casino in Edmonton on May 3, 2026. Photo by David BloomFinancial transparency is essential in any government to ensure both honesty and efficiency in operation. To judge whether or not to support a government, voters must be able to learn how their money is spent.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThis can be a challenge for First Nations, whose more than 630 governments spread across the country are difficult to review. In 2013, Parliament tried to enhance the financial transparency and accountability of these governments by passing the First Nations Financial Transparency Act, which required annual publication of audited financial statements, including information about how much the chief and members of council are paid.Compliance was initially high, although there was some opposition among First Nations on the grounds that there had not been enough consultation. Before the 2015 federal election, however, Liberal leader Justin Trudeau promised not to enforce the act — enforcement mechanisms specified by the act being discretionary. Because of non-enforcement, compliance with the act has steadily declined, dropping to only 41 per cent for the latest fiscal year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe Carney government has not signalled it will resume enforcement. At the current rate of decline, compliance will be close to zero within a few years and the act will be a useless dead letter.Charges of corruption and maladministration in First Nations governments continue to surface. Although compliance with the act would no doubt improve the situation, experience shows that the financial transparency reports, even when regularly submitted, are not always adequate to reveal corruption and maladministration because they do not drill down to the level of hiring and contracting where such cases are most likely to occur.An amended or even new act is needed to take account of the increased investment and trust fund wealth of First Nations, many of which run profitable businesses. Some have also received billions of dollars in settlements of various types designed to rectify historical grievances.Ideally, First Nations themselves should lead any consultations to produce the new act. Institutions such as the First Nations Tax Commission, the First Nations Financial Management Board, and the First Nations Finance Authority, whose work is supported by all federal parties, could be invited to lead the consultation process.Publication of audited financial statements must be universally required in a future regime, while First Nations and the federal government can negotiate such matters as scheduling, deadlines and the depth of the new legislation.The issue of disclosure of First Nation financial affairs has been allowed to drift for more than a decade, but this non-policy of neglect will not be adequate for the long run. First Nations have become players in the Canadian economy. It’s generally accepted they will be investment partners in the major projects of natural resource development on which the current federal government stakes its reputation. But if First Nations are to be trusted investment partners, enforceable legislation must require that they play by the same rules of transparency and accountability as other Canadian governments.Tom Flanagan, professor emeritus of political science at the University of Calgary, is a senior fellow of the Fraser Institute. He is the author of the newly-released study: “Transparency and Accountability in First Nations Governments.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.