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The Assembly of First Nations has blown the whistle on widespread fraud by companies pretending to be Indigenous in an effort to snatch lucrative federal deals as part of a government program which reserves 5% of contracts for Indigenous businesses.

Joelle Paquette, acting associate assistant deputy minister for Public Services and Procurement Canada, told Parliament's government operations committee that not only is the government failing to hit its 5% target, but her department hasn’t even taken steps to verify whether the businesses claiming Indigenous status are legitimate.

“In 2024, the department awarded only 3.4% of procurement contracts — about $143 million — to Indigenous businesses,” Paquette confessed. The failure isn’t new, as in 2023, only 2.7% of contracts went to Indigenous companies. “The department has not met its objective” Paquette acknowledged.

With 60,000 Indigenous businesses nationwide, only 2,900 are registered with the federal Indigenous Businesses Directory.

Even more concerning, Paquette admitted the public works department has no idea whether these registered businesses are genuinely Indigenous. The government has essentially been signing off on contracts without bothering to check credentials.

Conservative MP Larry Brock (Brantford-Brant, Ont.) pressed Paquette, “What is the total value of misappropriated funds under the Indigenous procurement system?” Her response? A shocking admission: “I do not have that information.”

Paquette couldn’t even confirm whether any referrals had been made to the RCMP to investigate fake Indigenous contractors. When asked if any companies had been flagged for hiring Indigenous people simply to get a foot in the door on contracts, she passed the buck to the Department of Indigenous Services.

Conservative MP Garnett Genuis (Sherwood Park-Fort Saskatchewan, Alta.) called Paquette's testimony “bizarre.” 

Paquette, representing the department tasked with procurement, shockingly had no answers. “You are the procurement department,” an incredulous Genuis remarked. “Do you have an opinion on it at all?” Paquette’s response: “I do not.”

Conservative MP Kelly Block (Carlton Trail-Eagle Creek, Sask.) called the hiring of fake Indigenous contractors “performative reconciliation.” Identity fraud has reportedly resulted in $163 million being funnelled to fake Indigenous contractors since 1994.

Once again, it’s the Trudeau government failing Indigenous Canadians while claiming to champion their causes.