Ottawa to create pool of third-party managers for financially troubled reserves

OTTAWA – The federal government wants to be able to tap into a pool of pre-qualified candidates who can manage the affairs of financially troubled First Nations communities.

The call for third-party managers comes despite past criticism from the federal auditor general, the government’s own internal evaluations and First Nations themselves about hiring outsiders to handle the finances of struggling bands.

A recent request-for-proposals says a list will be created of pre-qualified people or companies — grouped by language and location — who may be called upon to provide third-party management to First Nations communities.

The Aboriginal Affairs Department website says 14 First Nations were under third-party management as of Nov. 1.

When a reserve is in default, Ottawa can appoint a third-party manager to administer all money that comes from funding agreements between the First Nation and the federal government.

The First Nation’s chief and council remain in place under third-party management and they continue to manage any money that does not come from their funding agreements with Ottawa.