Lessons from Apsassin v. Councillor Yahey:Why Governance Matters for First Nations Finances
Background: the Blueberry River case
In late 2024 a governance dispute erupted in Blueberry River First Nations (BRFN). Elders Edward and Joseph Apsassin asked the Federal Court to review the conduct of four councillors, alleging that they repeatedly ignored Blueberry’s Custom Election By‑Law. This document acts as BRFN’s constitutional framework: it requires Council to hold regular meetings, give notice and agendas to band members, keep minutes, and consult the family groups the councillors represent when making major decisions. The Elders claimed councillors secretly met without formal agendas or minutes, went in camera without proper motions, and made major decisions, including the removal of the Chief, without consulting their family groups.
The Federal Court agreed that the by‑law is not optional. Justice Favel held that Blueberry’s custom election by‑law is the Nation’s supreme law; Council cannot “suspend or ignore its rules” just because members believe they are acting in the community’s best interests. Record‑keeping proved crucial: councillors refused to file the certified tribunal record despite a court order, so the court drew an adverse inference that regular meetings were not held and that there were improper in‑camera sessions. The court declared that the councillors had breached BRFN’s by‑law, ordered Council to convene regular meetings, and directed councillors to consult with family groups before making major decisions. The case sends a clear message: First Nations leadership must follow their own governance laws.
Why this matters for finances
Although Apsassin v. Yahey did not directly involve a budget, the judgment highlights the link between good governance and financial accountability. Meeting requirements, agendas, minutes and consultation duties provide a paper trail for financial decisions. When councillors meet privately and fail to record decisions, it becomes impossible to show how money was spent or whether community consent was obtained. The Federal Court’s insistence on proper records emphasises that transparent decision‑making is a prerequisite for trustworthy finances. In other words, councils that ignore their by‑laws risk having spending decisions quashed by the courts. For communities, this underscores the importance of Financial Administration Laws (FALs): comprehensive governance and finance laws under the First Nations Fiscal Management Act that formalise budgeting, reporting and record‑keeping. A FAL establishes consistent rules so that current and future councils use the same good finance practices; it helps run a nation smoothly, builds a strong financial future, promotes transparency and enables borrowing for community projects.
Growing legal pressure for financial transparency
Hans McCarthy’s court victory
In McCarthy v. Canada (Indigenous Services), Frog Lake First Nation member Hans McCarthy wanted to understand why his band’s trust fund, worth about $102 million in 2013, had dwindled to less than $9 million by 2024. McCarthy filed an Access to Information Act (ATIA) request seeking copies of band council resolutions (BCRs) that authorised withdrawals. Indigenous Services Canada (ISC) refused, claiming the documents contained personal and third‑party financial information. Justice Ahmed held that because the First Nations Financial Transparency Act (FNFTA) requires First Nations to publish consolidated financial statements and a Schedule of Remuneration and Expenses, information about councillor salaries and expenses is public information. The court ordered ISC to release the BCRs within 30 days, with only limited redactions of sensitive personal data. Justice Ahmed emphasized that when deciding whether to apply ATIA exemptions, ISC must consider statutes like the FNFTA and the Indian Bands Revenue Moneys Regulations, which require disclosure. Names and titles of chiefs and councillors were not personal information because the FNFTA makes this information publicly available. The case affirmed that band members have a legal right to see financial records and that the federal government cannot hide behind privacy exceptions when the law requires disclosure.
Thunderchild First Nation decision
Another recent Federal Court case involved Thunderchild First Nation. Band members and the Band Members Alliance and Advocacy Association of Canada (BMAAAC) sought overdue financial statements and council remuneration records. Justice Julie Blackhawk held that under the FNFTA, First Nations must publicly disclose audited financial statements and schedules of chief and council remuneration. Members or the federal government can apply to court to enforce disclosure. Because Thunderchild had not provided financial statements dating back to 2013, the court ordered a rolling disclosure schedule for all outstanding records and awarded costs to the applicants. The ruling stressed that financial transparency is a legal obligation, not a discretionary practice. It also showed that courts will accommodate administrative challenges but will still enforce the law.
Together, these cases show a trend
The McCarthy and Thunderchild decisions, coupled with Apsassin v. Yahey, paint a clear picture: community members are using the courts to demand accountability, and judges are willing to enforce statutory and self‑governance obligations. The FNFTA remains in force despite criticism; it requires First Nations to prepare audited statements, publish schedules of remuneration and expenses and make these documents available to members and online. Under s. 8 and 9 of the FNFTA, failure to publish these statements allows members to apply to court and empowers the federal government to withhold grants. The ATIA gives band members an additional tool to access records held by ISC when those records concern band trust funds. The Thunderchild case confirms that courts will set deadlines and award costs to enforce disclosure. Collectively, these decisions demonstrate that First Nation leaders have a legal duty to comply, and ignoring requests for information can lead to judicial intervention.
Implications for Financial Administration Law and self‑government
Apsassin v. Yahey underscores the importance of codified governance practices. A FAL, developed under the First Nations Fiscal Management Act, functions much like a constitution for finances. It defines how budgets are prepared, how council meetings are conducted, who approves expenditures and how records are kept. The First Nations Financial Management Board (FMB) explains that a FAL “is a set of governance and finance practices that helps Councils and staff make informed decisions and run their First Nation well”. It helps a nation run more smoothly, build a strong financial future, grow its economy, be transparent about its finances and demonstrate good governance.
By enshrining meeting procedures and record‑keeping into a FAL, First Nations can avoid the kind of governance crisis that led to Apsassin v. Yahey. Financial decisions will then be supported by meeting minutes, budgets and consultation records. This not only satisfies band members’ expectations but also protects councils when disputes arise. Courts have emphasised that where a nation’s own laws exist, they must be followed and will be enforced. Developing a FAL that aligns with the FNFTA can ensure that information required under federal transparency laws is produced seamlessly.
How Sklow Analytics can help
Sklow Analytics is a community‑focused financial reporting platform designed for First Nations. It enables governments to consolidate band council resolutions, budgets, audited statements and expense schedules in one secure, searchable database. Councils can upload meeting agendas and minutes, tag decisions by group or project, and generate dashboards that summarize revenue, expenditures and trust‑fund balances. Because the platform is accessible to both leaders and members (with appropriate access controls), it makes it easy to satisfy FNFTA reporting requirements and proactively respond to ATIA requests. Transparent dashboards reduce rumours and speculation, helping to build trust with members and external partners. For nations adopting a FAL, Sklow Analytics can map the law’s provisions to digital workflows – for example, requiring approvals at each stage of a major expenditure, recording who was consulted, and its alignment with approved strategic or department plans. This digital audit trail makes it easier to defend decisions if they are challenged in court and demonstrates compliance with governance and transparency laws.
Calls to action
Council members: Review your nation’s by‑laws and ensure that meeting procedures, record‑keeping and consultation duties are followed. Consider developing or updating a Financial Administration Law to codify these practices and align them with the FNFTA. Invest in digital tools, like Sklow Analytics, that make compliance easier and provide clear records for your community and auditors.
Community members: Engage with your leaders. Ask for copies of audited statements, remuneration schedules and meeting minutes. Use your rights under the FNFTA and ATIA if information is withheld. When you attend meetings or vote in elections, prioritise candidates who commit to transparency and good governance and have a track record and the credibility to do so.
Federal and provincial governments: Support capacity‑building for First Nations seeking to develop FALs and utilize modern information‑management systems such as Sklow Analytics. Enforce existing transparency laws fairly and consistently; court cases should be the exception, not the rule.
Advocates and advisors: Educate communities about their rights and about tools that can improve governance. Highlight success stories where transparency has rebuilt trust and attracted investment.
Conclusion
Apsassin v. Councillor Yahey is more than a political dispute, it is a reminder that First Nations governance documents are legally binding and that courts will enforce them. Coupled with the McCarthy and Thunderchild decisions, it signals a new era in which band members are demanding and winning financial transparency. By embracing Financial Administration Laws and modern reporting platforms such as Sklow Analytics, First Nations can meet these legal obligations, strengthen self‑government and build a foundation for long‑term prosperity.
