Federal $4 Million Grant Pulls First Nations University Back from Brink

Federal $4 million grant pulls First Nations University back from brink

REGINA — After being tossed a $4 million lifeline by the feds, the First Nations University of Canada can stay afloat for another 10 months.

Its supporters hope that will be enough time to prove the university can stay alive even longer.

On Wednesday, staff and students at FNUniv breathed a collective sigh of relief when Indian Affairs Minister Chuck Strahl announced the federal government would provide the embattled school with $4 million to cover costs from Sept. 1 to March 31.

"I really hold the First Nations University dear to my heart," said soon-to-be-third-year business student Rebecca Sangwais while sitting behind the counter at Kohkum Bea's convenience store at FNUniv. "I didn't realize at first how awesome this university is and the support system it offers. I was worried that it would be shutting down.

"I'm really overjoyed to know we're going to be here for another year and hopefully for the future."

Earlier this year, the provincial and federal governments withdrew millions in funding to the school over concerns related to governance and other issues.

The school has had ongoing issues with its administration and there have been allegations of inappropriate expense claims and misuse of funds. It was revealed back in March that a scholarship fund worth almost $400,000 was nearly drained in less than a year and that some of the money was used for general operations instead of financial assistance.

Among the other financial issues that have been raised are concerns about administrators and staff being paid hundreds of thousands of dollars in lieu of annual leave, contrary to the university's policy; there were also concerns over expenses claimed during trips to Montreal, Las Vegas and Hawaii and other travel expenses.

Several staff also received substantial salary raises despite poor performance reviews, according to the school's former chief financial officer.

Since funding was pulled, sweeping reforms have taken place, including the replacement of the entire board and some key senior administrators. The province has since restored its share of the funding, on condition it be funnelled through the University of Regina for the next few years.

The next step is for the university to secure long-term, sustainable funding. The $4-million offer, like the $3 million provided by the federal government to see students through the end of August, comes from the Indian Studies Support Program and comes with conditions that FNUniv meets milestones for governance and accountability changes.

FNUniv president Shauneen Pete was not made available to speak to the media Wednesday, but said in a news release that the "board of governors has committed an extraordinary effort to restore governance and accountability structures."

She also noted that, while funding is back near the level it was in February when over $12 million was pulled from the university by the federal and provincial governments following years of allegations of financial mismanagement and political interference, there are still dollars that can be saved.

FNUniv announced May 3 that it plans to sell the building that houses its Saskatoon campus and layoffs have already started.

Saskatchewan Minster of Advanced Education Rob Norris said he believes that FNUniv, along with its partners, the University of Regina and the Federation of Saskatchewan Indian Nations, are all on the right track to make the changes work.

"We've said the same thing with the provincial funding — all of the partners have to play their part," said Norris.

FSIN Chief Guy Lonechild said everyone has worked hard to reform FNUniv and make it stronger.

"I'm happy for the students. I'm happy for the people who said First Nations University needs to be given a chance," Lonechild said.

Lonechild and Strahl spoke about the funding by telephone Wednesday evening, and Lonechild said he hopes the next step will be for the federal government to commit to annual, stable funding.

Liberal Ralph Goodale, the local MP, cautiously applauded the move.

"It's a good sign, but it's not a guarantee and that's what's really required here," said Goodale. "Hopefully, all of the partners here will use the time that's available here to put into place an arrangement that will last a long time on a sound and credible financial basis."

With files from Jason Warwick