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.
Unfortunately, this is not the first time that Banderzierz has been involved in depriving Aboriginals of fair economic opportunities, As an INAC senior official he was involved in the design of the Loan Loss Reserve Fund (LLRF) which guarantees non-aboriginal banks loans to Aboriginals – using INAC funding – while excluding Aboriginal lending institutions the same opportunities (1). While the value of this contract pales in comparison to the millions involved in the LLRF, it financially benefits Banderzier directly while INAC is again using Aboriginal money to further disadvantage Aboriginal opportunities. The ACAN is based on the concept the not only can it not be fulfilled by an aboriginal provider but by any other provider in the world There is nothing in the description of the work (2) that cannot be provided by a knowledgeable Aboriginal provider – if INAC is willing work cooperatively with the provider (See Appendix 1).
Other programs that Banderziez was involved with while working with INAC are the cancellation of equity funding and the change in direction in CEDO funding, all of which have had negative impacts on Aboriginal economic development
Suspicions in the handling of this contract are further aroused by the documentation of the Merx Opportunity Abstract published for this opportunity. The ACAN in this instance indicates that it was published on June 29, 2010 The closing date is internally inconsistent stating initially a date of July 20, 2010 and further down in the document that it closes on July 7, 2010 (8 days). The latter date is in violation of the policy that regulations require that “ACANs are posted for a minimum of 15 calendar days on the Government Electronic Tendering Service (GETS)”(3). While once again this may be a blunder on the part of INAC there is also the hint that efforts may have been made confuse other potential suppliers or to rush the ACAN through to the benefit of Banderzierz.
In further non-adherence to policy the ACAN in question is a Set Aside Program for Aboriginal Business (SPAB) meaning that it is intended to be set aside for aboriginal contractors. The winning proposal must be offered to a business that is at least 51% aboriginal owned. While 1818872 Ontario Limited has two principles – Banderzierz and Mary Jane Lancaster – there is no indication that either is aboriginal as defined by INAC. Until such a condition can be proven, Aboriginal contractors are well within their rights to challenge the legitimacy of the ACAN.
Another potentially questionable factor is whether 1818872 Ontario Limited is able to operate throughout Canada. Provincial corporations are incorporated pursuant to the applicable provincial corporate statute, and only have the right to carry on business within the province or territory of incorporation. (i.e. an Ontario Corporation can only carry on business within the Province of Ontario) (4) as the INAC Lands and Economic Development Sector (LEDS) is national, the program should be developed by a national, preferably Aboriginal, supplier.
The exclusion of Aboriginal service providers cannot be seen as an oversight. A respected service provider has called the procurement officer on 2 occasions and has yet to receive a return call stating that this is the first time in 15 years that he did not get a return call. Indeed, not responding to business calls is highly unusual and when done by a government agency after years of routine communications does cast doubt professional behaviour and courtesy of the department.
The ACAN is defined as “a public notice indicating to the supplier community that a department or agency intends to award a good, service or construction contract to a pre-identified supplier believed to be the only one capable of performing the work, thereby allowing other suppliers to signal their interest in bidding by submitting a statement of capabilities.” (4) But the presumption that there is no other provider capable of doing the work is without proof and it is incumbent on other potential providers to find the ACAN and challenge it. It seems that in this case the window of opportunity, limited in the first place, is further narrowed by the closing date stipulated in the document.
Indian and Northern Affairs Canada (INAC) presents itself in the role of facilitator for Aboriginal development but it’s actions more often reflect the opposite. In the latest instance it appears that methods have been used to obfuscate processes that would allow Aboriginal communities to provide for themselves. The contract in question is for $25,000; a lot of money among Aboriginal communities and contractors. Directing such opportunities to non-aboriginal contractors only serves to exacerbate the lack of trust that is pervasive among the Aboriginal peoples.
INAC has long cited policies, literally chapter and verse, to Aboriginals that unless their adherence to regulations is strictly followed, their applications would be unceremoniously be rejected. One would think then that they observe these standards within the department itself. However this proves not to be the case when it comes to its own recent former employees.
It may be time to review the procurement procedures for INAC. Moreover it is important that Aboriginal groups and businesses themselves keep a closer eye on how INAC money, intended to benefit Aboriginals, is allocated.
Appendix 1: Program Renovation and Renewal Description of the work
The work required is three-fold: 1) to provide strategic and tactical advice related to Indian Affairs and Northern Development Canada’s [INAC] Aboriginal economic/business program renovation and renewal exercise; and, 2) to provide strategic and tactical advice concerning the Treasury Board Policy on Transfer Payments [PTP]. Concerning PTP, there is the need to ensure that the views of the Lands and Economic Development Sector [LEDS] are incorporated into the departmental PTP process, and to work with the LEDS program managers to ensure that all LED programs are PTP compliant by April 1, 2011. This work will
include working with each Sector program to ensure that program, recipient and project risk factors are incorporated into funding decisions and that each investment decision has clear accountabilities and results, and is tied to a monitoring process. This may also include the development of procedures manual, forms and other training material.
The third aspect of the work is related to the design and implementation of the new federal Strategic Partnerships Initiative Program. This will include contributing to the development, with partner departments, of program operating procedures forms and manuals, liaison with other government departments and INAC Sectors to develop inter-departmental agreements and working arrangements, work on implementing pilot projects, engagement with partners and stakeholders on program design, results reporting, and evaluation issues.
The supplier must have a thorough knowledge of, and experience working with, government Aboriginal economic/business development programming.
References
(1) INAC Diverting Aboriginal Money to Private Banks, First Peoples Horizons, March 16, 2010 http://firstnationsmanitoba.com/horizons/?p=122
(2) INAC Reference Number 199339 http://images1.hellotrade.com/data2/YV/EM/HTT-292/292_2010-07-06_71.pdf
(3) PN-39U3 Advance Contract Award Notices (ACANs), December 30, 2009, http://www.tpsgc-pwgsc.gc.ca/app-acq/arp-pns/ap39u3-pn39u3-eng.html
(4) Steps to Incorporation, http://www.newbusinessnow.com/information/incsteps.htm
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