Lake St. Martin First Nation undergoes forensic audit of $88M in federal funding

The Assessment and Investigative Services Branch of Crown Indigenous Relations and Northern Affairs Canada (CIRNAC) and Indigenous Services Canada (ISC) have commenced a forensic audit of funding provided to the community of Lake St. Martin, also called Obushkudayang.

ISC won’t say wouldn’t say what triggered the audit, other than that an allegation or complaint was received.

“We take allegations and complaints regarding the misuse of public funds very seriously,” says Eric Head, a spokesperson for ISC. “We have a process in place so that allegations and complaints are examined properly and that appropriate action is taken.”

Government records show the band is several years behind in filing financial statements and remuneration as required by the First Nations Financial Transparency Act (FNFTA).

The band was informed of the audit on Feb. 19 that federal funding received from April 2022 to current would be part of the review.

Head says Lake St. Martin has received nearly $88 million from ISC since 2022.

In February, Lake St. Martin filed expense reports for 2019-20 and 2020-21, but financials to 2025 are not posted. Lapses in reporting do not trigger a forensic audit, Head says.

The community, 225 kilometres northwest of Winnipeg, has 3,000 members, 1,700 who live on-reserve.

A person who answered the phone at the band office told Global News that Chief Christopher Traverse isn’t reachable by phone and doesn’t keep set hours at the band office. Traverse did not respond to messages left for him.

The Assessment and Investigative Services Branch of CIRNAC and ISC completed five forensic audits in 2024-25, including one that found $34 million in questionable transactions by the Federation of Sovereign Indigenous Nations in Saskatchewan.