Indigenous business leaders say Ottawa has not done enough to oversee its Indigenous contracting policy, and they want a larger role in determining which businesses are eligible to participate.
The Procurement Strategy for Indigenous Business, designed to benefit Indigenous businesses and communities, has persistently been the target of warnings from experts inside and outside the government.
They have said the PSIB’s rules allow non-Indigenous businesses to take advantage of the policy by partnering with Indigenous shell companies – businesses with only a few employees that exist to form joint ventures with larger companies. Such arrangements have been criticized for not resulting in tangible benefits for Indigenous communities.