FSIN launches legal action over $12.4M federal audit claim

The Federation of Sovereign Indigenous Nations (FSIN) has launched legal action against Indigenous Services Canada (ISC) following a dispute over $12.4 million in allegedly ineligible expenditures. The claim stems from a forensic audit conducted by KPMG, which originally identified $28.7 million in unsupported expenses between April 2019 and March 2024.

FSIN Chief Bobby Cameron stated that the organization does not accept the federal government’s conclusion and intends to seek a judicial review, alleging procedural unfairness. The FSIN maintains that it participated fully in the review process and had previously reached an agreement that narrowed the disputed amount. Specifically, the FSIN claims that nearly $8 million related to personal protective equipment had been substantiated and removed from the claim, only to be added back later.

Court documents reveal that the FSIN applied for judicial review in August, months before the matter was publicly disclosed. While the FSIN defends its spending and asserts that all expenditures will be proven eligible, some analysts have questioned the organization’s communication transparency with the First Nations leaders it represents.