INAC must provide documentation of exclusive deal; must also prove Duty to Consult

Indian and Northern Affairs Canada (INAC) has been stopped in their tracks in their efforts to divert Aboriginal funds to favoured non-Aboriginal banking institutions – at least until they come up with proof that they fulfilled their Duty to Consult with First Nations Organizations.

Alan Park, Chief Executive Officer of TWCC, said the Order represents a major victory for TWCC and all 57 Aboriginal Financial Institutions (AFIs) operating in First Nations, Métis and Inuit communities across Canada.

“We are particularly gratified that the Court is demanding the government produce documents that show Aboriginal organizations were consulted. We believe this is required under Section 35 of the Constitution Act.”

This will be a sticking point for INAC as all indications are that no such consultations ever took place.

The Federal government (and other provincial governmental bodies) appear to demonstrate a standard policy of ignoring and/or consciously violating the “Duty to Consult” requirement. The most egregious transgressor of this policy is INAC, supposedly charged with facilitating federal aboriginal affairs, positioning itself as the agent most closely associated with opposing the social, cultural, and economic growth and independence of Canada’s First Peoples. By excluding Aboriginal Financial Institutions, INAC is saying that Aboriginals are indeed second class, that they must remain under the yoke of non-aboriginal domination. This is despite the fact that aboriginal economics is outstripping and out producing the mainstream marketplace.
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Two things are apparent in the Canadian government and economics: (a) The federal government is cutting back on it’s responsibilities and (b) Aboriginal economic and governmental growth is increasing at a higher rate than ever.

While the First Peoples continue to navigate their way through the potholes and deadfalls created by hundreds of years of abuse by the Canadian government, times are now favouring an increasing confidence in self-government.

Becoming a growth sector in a recessive federal regime increases the advantage of the independent policies of Aboriginals. In doing so it becomes a “wild card” in the Harper program of globalising the Canadian economy (see video below) (1) under a more plutocratic structure.

Fortunately under the current Canadian system, it still isn’t easy to dismiss and marginalize the efforts of First Nations, Métis, Inuit, and Dene peoples. Treaty rights still exist as do legitimate challenges to archaic and misguided federal policies such as the Indian Act.
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Sole-sourcing, or ACAN procurements by INAC and other federal departments are and should be a major concern of Aboriginal peoples and organizations, particularly as it is being implemented by the Harper government. As stated in the last blog article, the preferential means of selecting and awarding Aboriginal funds to non-aboriginal recipients is inappropriate and violates the Federal governments a variety of own policies.

The major concern should be that Aboriginal policy and decision-making is being outsourced to private non-aboriginal interests. Aboriginals are not only being denied competitive participation in such matters but that they are being cut out of the INAC process entirely by sole-source procedures. This has to be addressed immediately. Native peoples for whom the INAC policies are designed must take a more active stance in how such monies are being used.

What could possibly go wrong?

You could say that $25,000 is not a lot of money but the issue may not be that simple. Theoretically, a $25,000 contract may only be the tip of the iceberg in a broader scheme. With a clever rewrite, a related ACAN can be generated to piggyback off the existing one. The same sole-source can then be selected for the next contract, especially if the previous one was never challenged. To take it a step further, larger contracts could also be created down the line in which the original sole-source grantee would then be the most qualified competitor as the result of the gateway ACAN. This stepping-stone arrangement could potentially lead to hundreds of thousands or even millions in government contracts, if inside influences are exploited.

In fact there have been complaints recently of similar abuses of the system. CTV.ca (1) has reported that four sole-source contracts, each worth $21,000 but renewable for up to $84,000 for three additional years, were posted on a contracting website last September. The first term runs until Nov. 9 this year. So the $25,000 limit can be easily circumvented at the whim of the government. Spokeswoman Annie Trepanier said in an email that Public Service Commission no rules were broken. “The PSC has met all the contracting requirements of the government of Canada,” That is open to interpretation but it is evident that the government shows no hesitation in bending, twisting, and otherwise abusing the policies in place.

The CTV report goes on to demonstrate another abuse of the ACAN mechanism, the claim that recipients of the contracts are the only ones capable of performing the job described. In a blatant misrepresentation of this each posting said there would be no job competition because “only one person is capable of performing the work” — even though the job description was identical in all four cases and four different candidates were awarded the jobs.

So to summarize, a total of at least $336,000 in contracts is divided up among four preferred providers in an uncompetitive manner under the ACAN procedure that has been clearly violated.
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Once more, The Federal government is selectively excluding Aboriginals from economic opportunities on aboriginal projects.

A case in point is the suspicious manner in which a contract is being directed preferentially to a recently retired employee and ineligible service provider, Radek Banderzierz, formerly of Indian and Northern Affairs Canada (Aboriginal Business Canada).
(See APTN Video Interview with Grand Chief Morris Shannacappo)

According to government policy Mr. Banderzierz is presently prohibited from receiving such contracts, much less a preferred status in the contracting process. Banderzierz retired October 1/2009 and government policy states such a person cannot be involved with any government business for at least 1 year. This would disqualify Banderzierz’s company, 1818872 Ontario Limited, incorporated on March 2, 2010 from even being considered for the contract.

As Banderzierz held a senior position within the department there is no excuse for being unaware of this restriction. Similarly, the current employees must have encountered this information in its due diligence. The only conclusion then is that either the participants in this contract are either incompetent, or they were actively accelerating procedures in a less than open and honest manner to guarantee that Banderzierz’s company benefited.

Banderzierz has established a numbered company in order to obtain an exclusive contract by having INAC issue it under the Advance Contract Award Notice (ACAN). This effectively shuts out other service providers, and in particular qualified and respected Aboriginal service providers. Numbered companies often referred to as “shell” companies make the true ownership less apparent. One has to wonder if the use of a numbered company was an attempt to circumvent regulations in light of Banderzierz’s current ineligibility for the contract.
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Vic Toews, who was President of the Treasury Board at the time of First Nations/Kapyong Barracks ruling, now hopes to redact history and falsely blame First Nations for the lack of progress on negotiations and development. In an effort to manipulate the social protest group, Raging Grannies, on June 21, 2010 (1) he deflects government responsibility by stating “Maybe the Raging Grannies should go talk to the lawyer for the First Nations,”

Even though The Raging Grannies don’t really have a dog in this hunt, the question of why the land continues to remain dormant does have merit – in regard to the rights of First Nations people.

“Highly respected judge Douglas Campbell, who has a solid track record of well-reasoned court rulings, completely rejected any and all arguments by the federal government that First Nations did not have entitlement and a right to be consulted concerning the development of the Kapyong Barracks.” (2)

Toews has now taken the opportunity to falsely target First Nations for the governments own delaying tactics, which can only foment a further increase in public anti-aboriginal sentiment. Using political smoke and mirrors he fails to be truthful and admit that he was actually the one blocking any efforts to bring the situation to the negotiation table.
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Copyright 2010 Peter Warkentin