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Cold Lake First Nations set for a legal battle

Cold Lake First Nations is prepared to fight for their right to keep band business and financial information private.

Cold Lake First Nations is prepared to fight for their right to keep band business and financial information private.

“We're prepared to argue and present our case in court…we feel that the corporate entities is none of their business, (the federal government) have never had any contributions to our corporate investments or developments,” said Walter Janvier, Councilor for Cold Lake First Nations.

The federal government announced earlier this month that they would be taking six First Nations reserves to court for refusing to comply with the new First Nations Federal Transparency Act. As of July 2014, it became a requirement for First Nations financials to be submitted and published on the Aboriginal Affairs and Northern Development website no later than 120 days after the end of a financial year. That includes audited financial statements and a schedule of remuneration and expenses of band chiefs and councilors.

Janvier said the amount of contribution the federal government makes to First Nations does not warrant the policy they're trying to enforce.

“We feel what they've done is not fair, to try and force that kind of legislation on us especially when their contribution to the nation is not even 25 per cent of our funding.”

For the year ending Mar. 31, 2013, Cold Lake First Nations was given over $6.2 million from the Government of Canada. Just under $4.1 million of that went towards community development, education, social development and Indian government support. $1.6 million was allocated to health related programs such as mental health and addictions, primary care, and health governance and infrastructure.

Janvier said the funding from the federal government has always been made public; their issue is when it comes to providing financials for band business.

“They'd never ask any other company to divulge that information to the public…we just don't need to be broadcasting our corporate information to the whole public, it's really none of their business.”

Member of Parliament Brian Storseth said they are not being asked to do anything out of the ordinary.

“I own a business, I have to disclose that to the ethics commissioner on a quarterly basis and any income drawn through that is disclosed as well,” said Storseth.

“All levels of governments have to have a certain transparency, whether it's the provincial government receiving transfer payments, whether it's the municipalities receiving grants, whether it's the First Nations with the treaties. There's a certain level of transparency and openness that has to be established.”

Along with Cold Lake First Nations, the other aboriginal groups the federal government is taking to court are: Athabasca Chipewyan and Sawridge in Alberta; Thunderchild and Ochapowace in Saskatchewan; and Onion Lake Cree Nation, which straddles the Alberta/Saskatchewan border.

In a statement issued by the Minister of Aboriginal Affairs and Northern Development Bernard Valcourt, he said they “will continue to withhold funding for non-essential programs for all non-compliant First Nations”.

It goes on to say: “With this Act, our Government has made financial information more accessible to First Nation members, which leads to more effective, transparent and accountable governance as well as stronger, more self-sufficient and prosperous communities.”

Janvier said the financial documents are made public to members of Cold Lake First Nations, but he doesn't believe the rest of the public should know.

“It's no one's business as to what I make as a leader, or any other leader community, we always have been and always will be accountable to the numbers with what the salaries are.”

The Cold Lake First Nations has a registered population of 2,766 people, only slightly more than Kehewin Cree Nation's population of 2,037. The salary for the highest paid councilor for Cold Lake First Nations (not including expenses) comes in at just over $233,000 per year. Kehewin Cree Nation's highest paid councilor (not including expenses) has a salary of $66,350 per year. The salaries for the chiefs go from $88,150 per year for Kehewin's chief to almost $189,000 per year for Cold Lake First Nations' chief.

Storseth said everyone in government has to have transparency, and that this new initiative was not just targeting First Nations communities.

“Nobody's asking for trade secrets, to know what your salary is from an organization is not a trade secret.”

While Janvier believes his salary is “no one's business”, the real issue is when it comes business deals the First Nations group has made. He feels that by disclosing information about the bands finances they could hurt their ability to do business in the future.

“(There are) a lot of confidentiality agreements we have with our business partners and business associates, it's of prime importance because we have signed a lot of agreements to not divulge that information…as a result that may impede our ability to have fair market value when it comes down to other business relationships.”

Cold Lake First Nations audited financial statements, as well as a schedule of remuneration and expenses, are currently posted online. Janvier said that is because they had two audited statements done and by the time they realized the first one had been sent it was too late. He noted that they have always posted them in the previous years but it is now a “matter of principle” and that their issue is with the act itself, how the federal government is “trying to force corporate information”, which Janvier believes is unfairly targeted at only First Nations.

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