Indigenous activist wins landmark court ruling for financial transparency
Indigenous activist Hans McCarthy has won a landmark Federal Court ruling affirming that First Nations band members have the right to access documents related to their community’s financial management
Indigenous activist Hans McCarthy has won a landmark Federal Court ruling affirming that individual First Nations band members have the right to access documents related to their community’s financial management.
McCarthy, a member of Frog Lake First Nation in Alberta, said the decision is a significant step toward ensuring accountability for how band revenues are handled.
“The federal government and First Nations leaders have a responsibility to be transparent about what is happening with our people’s money,” McCarthy said. “This court victory is important because it will help my community, but it will also help all bands across the country fighting for more financial transparency.”
The case centred on access to band council resolutions concerning the Frog Lake trust fund — a fund built from natural resource revenues generated on band lands. According to documents previously released under the First Nations Financial Transparency Act, the trust fund totalled about $102 million in 2013. By 2024, less than $9 million remained.
McCarthy partnered with the Canadian Taxpayers Federation to file a court application after Indigenous Services Canada refused to release the requested documents through federal access-to-information channels. The application sought to compel Ottawa to provide full records related to the administration of the trust fund.
In its decision, the Federal Court ordered Indigenous Services Canada to disclose the documents within 30 days, subject to limited redactions. The ruling clarifies that band members are entitled to review financial records concerning their community’s trust funds and that federal officials cannot withhold those documents from individuals requesting them.
“This decision sets an important legal precedent for financial transparency,” said Devin Drover, the CTF’s general counsel. “The court made it clear that neither Ottawa nor band leadership can keep band members in the dark about their community’s money.”
Gage Haubrich, the CTF’s Prairie director, also welcomed the ruling.
“This is a huge victory for financial transparency for First Nations communities,” Haubrich said. “The victory in this court case sets a clear precedent: Band members have a right to know how their community’s money is being used.”
McCarthy argued in court that trust fund records should be available to any Frog Lake member who requests them, and the ruling confirms that both federal authorities and First Nations leadership share responsibility for ensuring disclosure.