The Federation of Sovereign Indigenous Nations says they will be taking legal action against the federal government after Indigenous Services Canada ordered the organization to repay more than $12.3 million in disputed funding or risk losing current federal support.
In a letter this week, ISC formally notified the FSIN executive that $12,376,807.40 in transactions reviewed during a forensic audit spanning April 2019 to March 2024 is now considered a debt owing to the Crown.
The federal department requested full repayment by Nov. 13, 2026, warning that if the money is not returned, Ottawa will begin withholding current funding payable to the organization as a set-off against the debt. ISC also indicated it will formalize the debt through a statement of claim.
The FSIN rejected the department’s final decision, arguing that the expenditures are legitimate and aligned with funding agreements.
In a media release, the federation stated that nearly $8 million of the disputed funds was for personal protective equipment that had previously been substantiated and removed from the ineligible list during negotiations with ISC officials. The remaining $4.4 million involves administration fees, which the FSIN says Ottawa has failed to support with clear policies.
“ISC may have concluded its process, but this matter is not concluded for the FSIN,” FSIN Chief Bobby Cameron said in a statement. “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.”
FSIN Vice Chief Fabian Head supported the legal challenge, stating an internal review showed the spending was reasonable and necessary to serve First Nations communities.