The federal government has recently clarified that a “picture of a bunny” is not sufficient documentation to access a multi-billion dollar procurement program intended for Indigenous businesses. Indigenous Services Canada (ISC) issued an apology to the Algonquin Anishinabeg Tribal Council after an official mistakenly told them that they could upload any document, even a photo of a rabbit, to qualify as an Indigenous supplier. The department spokesperson emphasized that proof of Indigeneity is required in order to participate in the Procurement Strategy for Indigenous Business (PSIB), a program aimed at giving Indigenous-owned and operated businesses access to federal work. The incident raised concerns about the eligibility requirements for the program and highlighted the need for stricter professional standards among employees working on the PSIB.
In response to the incident, ISC promptly apologized to the Algonquin tribal council and reinforced the need for professional business standards among employees working on the PSIB to prevent similar mistakes in the future. A months-long investigation by Global News and researchers at the First Nations University of Canada uncovered significant loopholes that non-Indigenous companies could exploit to access federal contracts meant for First Nations, Inuit, and Métis businesses. The investigation highlighted issues with how the government verifies the ownership and control of Indigenous businesses and exposed “rent a feather” schemes where non-Indigenous companies hire Indigenous individuals to front their bids for government work.
The PSIB, established in 1996, was designed to allocate a percentage of federal contracts to businesses that are at least 51 percent owned and operated by Indigenous people. However, the investigation revealed longstanding problems with the verification process dating back to internal government reviews conducted in 1999. Following the bunny incident, several Indigenous organizations, including the Algonquin Anishinabeg Tribal Council, the Assembly of First Nations, and the Assembly of First Nations Québec-Labrador, called for an official probe into the PSIB by the Auditor General’s office. They raised concerns about non-Indigenous individuals defrauding the government by using fabricated proof of Indigeneity to access the program and emphasized that this impacts all taxpayers.
In response to the calls for an audit, the Auditor General’s office confirmed that they are considering conducting an investigation into the PSIB. Meanwhile, ISC reported that they had completed 19 audits of companies listed on the Indigenous Business Directory (IBD) to verify their Indigenous ownership and control. As of the latest update, there were 2,959 companies listed in the directory. The ongoing scrutiny of the PSIB highlights the need for improved processes and stricter oversight to ensure that the program fulfills its intended purpose of supporting Indigenous businesses and communities. Ultimately, addressing the loopholes and fraudulent activities in the procurement system will help safeguard taxpayer funds and uphold the integrity of programs meant to promote Indigenous economic development.
