Feds pull funding from problem-plagued First Nations school

REGINA — First Nations University of Canada suffered a major blow Monday as the federal government pulled $7.3 million in funding, despite an effort by First Nations leaders to make long-promised governance changes at the post-secondary institution.

Along with the withdrawal last week of provincial cash, the university has now lost $12.5 million — more than half of its annual funding.

Federal Indian Affairs and Northern Development Minister Chuck Strahl said in a statement that his department has worked with the university to help address "long-standing, systemic problems related to governance and financial management of the institution" but the institution delayed taking action.

"This situation can no longer continue. Therefore, after assessing the long-term sustainability of the institution, the department will not renew its current funding to the university, effective March 31, 2010," Strahl said.

"Our government is committed to helping First Nation students access and complete their education. At the same time, we need to be accountable and transparent to all Canadians, including First Nations," Strahl said.

The decision to pull funds comes even after the Federation of Saskatchewan Indian Nations (FSIN) said last week that it would make governance changes that had long been called for. Following the Feb. 3 removal of $5.2 million in provincial funding, FSIN chiefs agreed to dissolve the university's board of governors, which has been criticized as being too large and too political due to the inclusion of several chiefs. Also, at least two senior university administrators were to be put on leave.

An interim board comprised of academics, faculty and alumni was to be appointed.

Despite those developments, Indian Affairs spokeswoman Genevieve Guibert said Monday the federal government cut funds "mainly because two critical reports were not delivered to the department by the agreed-upon deadlines."

Guibert said the board of governor's manual/governance reforms report was due in 2009 but now isn't expected until mid-February. A second report was expected to set out an action plan, she said.

The federal government said the $7.3 million that would have been allocated to the university for the 2010-11 fiscal year will remain within the government's Indian student support program, and will be available for proposals that do not include operational funding.

In addition to concerns about governance, the university is also dealing with allegations of financial impropriety. Murray Westerlund, the former chief financial officer of the university, has filed a lawsuit claiming he was fired for presenting documents to the audit committee outlining alleged misuse of funds and inappropriate expense claims.

The Canadian Association of University Teachers said the federal government's decision "nails the coffin shut" on First Nations University.

"I can't find the words to describe how stunned I am at what the federal government has done and how destructive I think it is and how almost vengeful it is to do this after FSIN has taken action," said the association's executive director James Turk.

"They had five years to put pressure on the FSIN . . . and then they choose to do it afterwards when the problem looks like it's on a road to a solution," said Turk, who also encouraged the provincial government to put back its funding now that FSIN has taken steps to address the governance issues.