On the face of it, Indigenous and Northern Affairs Minister Carolyn Bennett gets the need for openness in governance. “Transparency and accountability are paramount to any government, whether it is municipal, provincial, federal or First Nation,” she declared last week.

And who would disagree?

Unfortunately, Bennett delivered her ringing statement of principle even as she gutted the First Nations Financial Transparency Act of all penalties that ensure band councils are held accountable to their membership, taxpayers, and Ottawa for how billions in federal funding are spent.

She did so by reinstating funding that had been withheld against First Nations that refused to comply with the act, and by suspending court action against them. In doing so she risks rendering the act toothless.

That’s wrong. While it may win favour among native leaders, including the Assembly of First Nations, it was done at the expense of band members.

The transparency act requires First Nations to publicly disclose their spending, including what chiefs and councillors get by way of pay and expenses. It has shed welcome light since the 2013-2014 fiscal year, when it was first implemented.

In some cases it drew attention to questionable salaries and economic practices.

The small Shuswap First Nation in British Columbia, for example, dumped longtime chief Paul Sam after learning he was earning more than $200,000 tax free a year for presiding over 87 members.

As well, the tiny Kwikwetlem First Nation in B.C. learned their chief, Ron Giesbrecht, was paid $914,219 for governing 82 members, including $800,000 as an “economic development” bonus.

But for the most part the First Nations Financial Transparency Act corrected the unfair public perception that most aboriginal leaders are highly overpaid. They aren’t.

Using public figures, the Star’s Joanna Smith found that in the 2013-2014 fiscal year the chiefs earned a fairly modest $60,000 in median salary and honoraria. Eight took no remuneration, 34 got less than $10,000 and 41 got between $10,000 and $20,000.

That’s a far cry from the outrageous salaries some First Nations chiefs used to be paid, which spurred calls for more transparency.

Today, most First Nations bands comply with the law. As of Dec. 17, only 38 of 581 bands had not complied for the 2014-2015 fiscal year. That high level of compliance suggests the law was working.

Bennett says the steps she took will “enable us to engage in discussions on transparency and accountability that are based on recognition of rights, respect, co-operation, and partnership.” That sounds good, in principle.

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But how will the rights of band members to see fiscal statements and salaries be guaranteed, going forward? How this will result in “real accountability by all parties,” in the words of Assembly of First Nations national chief Perry Bellegarde? These are questions Bennett needs to answer. Band members shouldn’t be left in the dark.

The Liberals came to power promising more open, transparent governance. That should go for Ottawa and First Nations alike. No exceptions. This risks being a backward step.

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