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Financial irregularities

ISC demands FSIN pay back over $12 million, owed funding may be used to cover debt

Oct 15, 2026 | 11:25 AM

After years of back and forth between Indigenous Services Canada (ISC) and the Federation of Sovereign Indigenous Nations (FSIN), the federal government is now demanding re-payment of over $12.3 million and is threatening to use the funding it pays out to the organization to cover off the debt. 

That’s according to a letter issued to the FSIN and signed by ISC Director Rob Harvey on Wednesday and shared on social media by Muskeg Lake Cree Nation Chief Kelly Wolfe.

ISC is seeking payment in full by Nov. 13. At a press conference in Saskatoon last week, Minister of Indigenous Services Canada Mandy Gull-Masty stated a final letter from ISC to the FSIN was imminent.

The financial report was started in March 2024 and covered the period from April 1, 2019, to March 31, 2024. The initial findings were the total amount of ineligible and unsupported expenses of $4,805,760.58 and $23,938,821.07. The majority was attributed to COVID-19 expenditures like PPE (personal protective equipment). 

Since then, the FSIN has had several opportunities to provide receipts and account for the expenses. 

“Now that the debt has been formalized, ISC may use any funding owing to the FSIN as an offset to the debt,” the letter from Harvey stated. 

When paNOW attempted to contact Harvey for comment, he forwarded the request to ISC’s communications

The FSIN, meanwhile, is rejecting Indigenous Services Canada’s final decision and in a press release, stated they have commenced legal action.

“ISC may have concluded its process, but this matter is not concluded for the FSIN,” said FSIN Chief Bobby Cameron. “Our staff have cooperated, provided the records requested and defended the decisions made through our own governance processes. We remain confident that when this matter is subjected to a fair and independent review, all expenditures will be proven eligible and the allegations proven false.”  

According to a statement by the FSIN executive, they participated fully and in good faith throughout the review. They cited the fact ISC representatives confirmed that all PPE purchases, comprising almost $8 million of the $12.376 million, were substantiated as purchased, delivered, and removed from the list of ineligible or questionable expenditures.  

“We are surprised that this would be added back on despite the ample evidence provided and the advice of their own ISC staff. The remaining $4.4 million in expenditures is mainly related to administration fees for which ISC has failed to produce policies to support their position,” the FSIN said in their statement. 

FSIN Vice Chief Fabian Head, former chief of Red Earth Cree Nation and a long-serving First Nations leader, undertook a comprehensive review of the financial processes and expenditures identified by ISC following his election to the FSIN executive.  

“As a former chief and now vice-chief of the FSIN, I believed it was important to personally review the records, policies, and expenditures that ISC has deemed ineligible,” said Vice Chief Head. “My review reinforced my confidence in FSIN’s strong financial management practices, accountability measures, and governance processes. Based on the evidence before me, the expenditures that ISC has classified as ineligible are legitimate, reasonable, and consistent with both the funding agreements and the realities of serving First Nations communities. I fully support FSIN’s decision to challenge these findings and defend the interests of the Nations we represent.” 

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nigel.maxwell@pattisonmedia.com

On X: @nigelmaxwell