The federal government’s problems over Indigenous contracting are only intensifying.
Driving the news: Ahead of today’s House of Commons hearing into the integrity of the federal Procurement Strategy for Indigenous Business, an ex-auditor told the Globe and Mail the feds “repeatedly ignored warnings” about misuse by non-Indigenous parties.
Catch-up: The program has been around since 1996, but came into larger prominence in 2021 when the feds ruled that 5% of the total value of federal contracts for goods and services must be procured from Indigenous companies. It has since come under scrutiny for alleged fraud and abuse.
- In August, Global found that billions in contracts were given to unverified Indigenous businesses and detailed the practices non-Indigenous entities use to secure deals.
- Since then, activists have called for Indigenous-led oversight, a federal cabinet minister resigned over fraud allegations, and the auditor general announced a probe.
Why it matters: The Assembly of First Nations estimates that just 1% — not 5% — of federal contract spending goes to actual Indigenous businesses. If true, it’s a massive setback for economic reconciliation and (once again) calls into question the efficacy of federal contracting.—QH