What took you so long federal government?
Indian Status Card Fraud Is Costing Millions
But Replacing Old Paper Document Could Cost $30 M
By Paul Samyn
Winnipeg Free Press
Saturday, May 5, 2007
Page A3
OTTAWA - Fraud and misuse of Indian status cards that entitle natives to everything from free drug care to tax-free purchases to jobs in the United States have been costing taxpayers an estimated $33 million a year.
Federal documents show the Indian and Northern Affairs Canada has been working on a plan to stem the previously undisclosed problem that has allowed non-natives to not only tap into a number of government benefits but also forgo paying federal and provincial taxes.
But fixing the problem won't come cheap. The department estimates it will cost $30 million over five years to come up with a new high-tech form of native identification to replace the roughly 763,000 easily forged paper cards now in use.
"The old card is basically 1960s technology and as we found out people can easily replicate it," said Ray Hatfield, a senior official at Indian Affairs.
Hatfield said the department has been aware since the mid-1990s that rights and benefits such as on-reserve housing, education and federal and provinjcial tax ememptions were being accessed by non-natives.
"We became aware of fraud and misuse through cards that would be turned in and there would be individuals trying to claim benefits they were not entitled to," Hatfield said.
"Once we realized that and it was brought to our attention that this was occurring, we looked at a way of improving the security of the card and the system as well."
The department does not have a breakdown of how much money was lost to fraud and what portion was due to misuse.
The push for a secure form of identification for Canada's natives has the backing of the Assembly of First Nations which wants to ensure Indians can continue to pass freely across the border and even work in the United States as part of a long-standing treaty.
"We as First Nation people value our rights to cross the border so we don't want anyone to misuse our rights," said John Beaucage, and AFN grand chief from Ontario.
Beaucage said the AFN has been working with Indian and Northern Affairs to develop a card that might include features such as biometrics that it hopes will be made freely available to status Indians.
"I have heard of some fairly large numbers of cards stolen or being forged by non-native people getting tax benefits as well as using the cards for (free) pharmaceuticals," he said.
"Once obtained, they could also be used for illegal crossing of the border."
The AFN also wants the new status cards to meet the requirements the United States is imposing for entry into the country and has had discussions with the U.S. Department of Homeland Security officials on whether it could allow natives to cross the border without a passport.
NDP native affairs critic Jean Crowder who obtained the federal documents under the Access to Information Act said she is worried the department has been dragging its feet on fixing the problem with the cards.
"It shouldn't have taken them this long," she said.
Hatfield said a pilot project underway with Alberta bands on a new secure card is proceeding well and that a new card could be officially rolled out in 2008. The department says the redesigned and modernized card will meet federal and international standards for identification cards and will incorporate the latest security features.
paul.samyn@freepress.mb.ca
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CyberSmokeBlog:
Speaking hypothetically, of course, if a Metis outdoorsman married to a Treaty Indian lady shot a moose out of season and was subsequently set upon by a Manitoba Conservation game warden, could he not claim his wife did it? What about fishing quotas and purchasing pharmaceuticals? Interesting to speculate.
But Replacing Old Paper Document Could Cost $30 M
By Paul Samyn
Winnipeg Free Press
Saturday, May 5, 2007
Page A3
OTTAWA - Fraud and misuse of Indian status cards that entitle natives to everything from free drug care to tax-free purchases to jobs in the United States have been costing taxpayers an estimated $33 million a year.
Federal documents show the Indian and Northern Affairs Canada has been working on a plan to stem the previously undisclosed problem that has allowed non-natives to not only tap into a number of government benefits but also forgo paying federal and provincial taxes.
But fixing the problem won't come cheap. The department estimates it will cost $30 million over five years to come up with a new high-tech form of native identification to replace the roughly 763,000 easily forged paper cards now in use.
"The old card is basically 1960s technology and as we found out people can easily replicate it," said Ray Hatfield, a senior official at Indian Affairs.
Hatfield said the department has been aware since the mid-1990s that rights and benefits such as on-reserve housing, education and federal and provinjcial tax ememptions were being accessed by non-natives.
"We became aware of fraud and misuse through cards that would be turned in and there would be individuals trying to claim benefits they were not entitled to," Hatfield said.
"Once we realized that and it was brought to our attention that this was occurring, we looked at a way of improving the security of the card and the system as well."
The department does not have a breakdown of how much money was lost to fraud and what portion was due to misuse.
The push for a secure form of identification for Canada's natives has the backing of the Assembly of First Nations which wants to ensure Indians can continue to pass freely across the border and even work in the United States as part of a long-standing treaty.
"We as First Nation people value our rights to cross the border so we don't want anyone to misuse our rights," said John Beaucage, and AFN grand chief from Ontario.
Beaucage said the AFN has been working with Indian and Northern Affairs to develop a card that might include features such as biometrics that it hopes will be made freely available to status Indians.
"I have heard of some fairly large numbers of cards stolen or being forged by non-native people getting tax benefits as well as using the cards for (free) pharmaceuticals," he said.
"Once obtained, they could also be used for illegal crossing of the border."
The AFN also wants the new status cards to meet the requirements the United States is imposing for entry into the country and has had discussions with the U.S. Department of Homeland Security officials on whether it could allow natives to cross the border without a passport.
NDP native affairs critic Jean Crowder who obtained the federal documents under the Access to Information Act said she is worried the department has been dragging its feet on fixing the problem with the cards.
"It shouldn't have taken them this long," she said.
Hatfield said a pilot project underway with Alberta bands on a new secure card is proceeding well and that a new card could be officially rolled out in 2008. The department says the redesigned and modernized card will meet federal and international standards for identification cards and will incorporate the latest security features.
paul.samyn@freepress.mb.ca
---------------------------------------------------------------------------
CyberSmokeBlog:
Speaking hypothetically, of course, if a Metis outdoorsman married to a Treaty Indian lady shot a moose out of season and was subsequently set upon by a Manitoba Conservation game warden, could he not claim his wife did it? What about fishing quotas and purchasing pharmaceuticals? Interesting to speculate.
posted by Clare L. Pieuk at 10:14 AM
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