ABSTRACT
Corruption, defined as the “abuse of entrusted power for private gain,” is recurrent in Canadian First Nations communities. Typical phenomena include embezzlement, nepotistic hiring practices, conflict of interest in business dealings and overpayment of office-holders. The causes are structural: small size of communities, leading to lack of expertise in public administration; intermingling of governmental and business functions; dominance of First Nations governments over civil society; and absence of taxation with attendant lack of concern for economy in band governance. Because these structural factors are virtually impossible to change except in the very long run, the best prospect for reform is greater transparency in First Nations financial administration. The previous Conservative government passed legislation designed to achieve this, but it seems likely that the current Liberal government will weaken or even repeal this legislation. If so, it would be highly desirable to find other mechanisms for transparency, such as a First Nations Auditor General.
