Indigenous Governance and Financial Transparency at the Heart of Legal Battle
Ottawa, ON – March 18, 2025 – In a significant ruling impacting First Nations financial transparency, the Federal Court of Canada has ordered Thunderchild First Nation to disclose long-overdue audited financial statements and records of council remuneration.
The decision follows an application by a group of Thunderchild band members and the Band Members Alliance and Advocacy Association of Canada (BMAAAC) seeking compliance with the First Nations Financial Transparency Act (FNFTA).
What is the First Nations Financial Transparency Act?
The First Nations Financial Transparency Act (FNFTA), enacted in 2013, mandates that First Nations governments publicly disclose financial information, including audited consolidated financial statements and schedules of chief and council remuneration and expenses. The law requires bands to provide these records to any member upon request and publish them online for public access.
If a First Nation fails to comply, members or the federal government can apply to a superior court to enforce disclosure. The FNFTA aims to promote financial accountability and transparency, ensuring that band members can access financial information about their leadership and governance. However, the law has been controversial, with some Indigenous leaders arguing it infringes on self-governance.
Court Sides with Thunderchild Band Members Seeking Transparency
The applicants, including Marlen Horse, Andrea Bear, Jonas Thunderchild, and 24 other band members, argued that Thunderchild First Nation had failed to release financial records dating back as far as 2013, despite its obligations under the FNFTA.
Justice Julie Blackhawk found that Thunderchild had been non-compliant with the FNFTA but acknowledged the band’s recent efforts to remedy the backlog. The court ultimately granted the application in part, imposing a structured disclosure schedule to ensure transparency while recognizing the administrative challenges faced by the band.
Thunderchild First Nation Ordered to Release Financial Documents
As part of the ruling, the Federal Court mandated a rolling disclosure of financial records, including:
- Past-due financial statements and schedules for fiscal years 2013–2014 to 2023–2024
- Regular updates on progress every 90 days
- A $1,238.12 cost award to the applicants
While the court rejected an order for ongoing compliance beyond the current records, it emphasized that financial transparency is a legal obligation, not a discretionary practice.
What This Means for First Nations Governance
This case highlights a broader issue of accountability and governance within Indigenous communities, where band members are increasingly challenging leadership to uphold financial transparency. The FNFTA, enacted in 2013, mandates that First Nations publish audited financial statements and disclose leadership salaries.
Thunderchild First Nation argued that delays were due to historical backlogs and administrative challenges but assured the court it was working to clear the overdue reports. The ruling affirms that while First Nations leadership must balance governance responsibilities, compliance with financial disclosure laws cannot be indefinitely postponed.
Indigenous Advocacy and the Push for Transparency
BMAAAC, the advocacy group representing the applicants, has played a key role in assisting First Nations band members in accessing financial records and holding leadership accountable. Cases like this demonstrate the growing legal push for financial transparency in Indigenous governance.
As more First Nations communities seek financial accountability, this ruling sets an important precedent: band members have the right to access financial records, and leadership must comply with federal transparency laws.
Looking Ahead
With the May 7, 2025, deadline for the first round of disclosures, Thunderchild First Nation must now prioritize financial reporting to meet the court’s orders. The ruling serves as a reminder to all First Nations councils that compliance with the FNFTA is mandatory, and failing to disclose financial records can result in legal action and court intervention.