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Public Services and Procurement Canada fails to meet 5% target for Indigenous business contracts
Contract Type
contract
Description
The Assembly of First Nations has revealed widespread fraud in the procurement contracts for Indigenous businesses, with only 3.4% of contracts, approximately $143 million, awarded to Indigenous businesses in 2024. The department has failed to verify the legitimacy of businesses claiming Indigenous status, and the issue has persisted, with only 2.7% of contracts going to Indigenous companies in 2023. Furthermore, out of 60,000 Indigenous businesses nationwide, only 2,900 are registered with the federal Indigenous Businesses Directory, raising concerns about the genuine Indigenous status of the registered businesses. The government has been signing off on contracts without ensuring the credentials of the businesses, leading to misappropriation of funds and a lack of referrals for investigation.