A forensic audit obtained through Access to Information has uncovered a disturbing trail of vanished financial records and untraceable spending at Makwa Sahgaiehcan First Nation in Loon Lake, Saskatchewan—where over $74.6 million in federal funds were transferred over five years.

.@GCIndigenous discloses First Nation investigated for misspending had records vanish before forensic auditors arrived: "There are concerns documents were intentionally taken."  https://t.co/ZDfb1ETeEJ #cdnpoli pic.twitter.com/2J8vv0jnq5

— Blacklock's Reporter (@mindingottawa) April 17, 2025

According to the PricewaterhouseCoopers audit, commissioned by Indigenous Services Canada and first reported by Blacklock’s Reporter, auditors were blocked from investigating the majority of 29 allegations of financial misconduct due to missing documents. “We understand from speaking with First Nation representatives there are concerns that documents were intentionally taken… and destroyed or never obtained,” the report stated.

Of the 29 complaints, only six were dismissed, six were substantiated, and 17—more than half—could not be fully investigated due to the lack of documentation. At least $523,784 in suspicious expenditures were identified, with auditors citing insufficient documentation to justify the spending.

The audit stemmed from a request by the First Nation Council itself, following concerns raised during a 2019 meeting with federal officials over a community suicide crisis. Chief Ronald Mitsuing reportedly flagged possible mismanagement of funds from 2017 to 2020.

The timing raises broader concerns about oversight: during the same period, the federal budget for Indigenous programs more than doubled—from $10.3 billion in 2017 to $23.3 billion—while the bureaucracy ballooned. According to the Senate finance committee, staffing at the two new Indigenous-focused departments grew from 4,600 to 8,300 employees.

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