INBU 201v2 - Assignment 2
Indigenous Community Economic Development Governance
Case: Blue Sky Indigenous Nation Community Trust
Student Name: _______________________________________________
Course: INBU 201v2
Assignment Weight: 20%
Body Word Count: 988 words
Introduction
The Blue Sky Indigenous Nation Community Trust was created to protect $4.9 million in capital
and use investment revenue for approved community projects. In 2013, three trustee vacancies
were filled through interviews that did not follow the normal process established by Chief and
Council in 2001. The trust manager helped redesign the questions and interviewed applicants even
after declaring that one candidate was the manager's mother. Although the corporate trustee
verified the scores and the candidate had previously ranked highly, Chief and Council still faced a
reasonable perception of conflict of interest (Bearclaw, 2015). I would not keep the status quo. I
would preserve the community-based trustee model but strengthen the selection procedure so
that family relationships are disclosed, conflicted decision-makers step aside, and an alternate
panel can complete the process without undermining community authority.
Analysis
1. What issues or problems are foreseeable with the current governance structure,
specifically regarding conflict of interest?
The main problem is not proof that favouritism occurred; it is that the structure allowed a
person with an obvious personal relationship to remain directly involved in designing and scoring
the selection process. The 2001 procedure expected current trustees to interview and rank
candidates. In 2013, however, most trustees did not participate, so the trust manager and
corporate trustee conducted the interviews. The manager had already declared a conflict because
one applicant was the manager's mother, yet there was no rule requiring recusal and the trustees
did not respond to the declaration. This created a serious appearance problem even though the
interviews were conducted consistently and the corporate trustee verified the scores (Bearclaw,
2015).
A second weakness is that the Trust Agreement's conflict-of-interest clause is too narrow for
this situation. It addresses trustees who have an interest or close connection in contracts, but it
does not clearly govern the trust manager, trustee recruitment, family relationships, or the
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