Sakku's record not acceptable: KIA
Darrell Greer
Northern News Services
Rankin Inlet (Mar 05/01) - The Kivalliq Inuit Association has reached the tolerance level with its business development arm.
Sakku Investments Corp. has racked up a $1-million deficit during the past three years, including about $400,000 for the year 1999-2000.
KIA president Paul Kaludjak says the financial situation has to change -- and soon.
"Sakku has put money into various companies and are still not seeing a return," says Kaludjak. "Also, there have been contributions or loans made to beneficiaries during the past few years that have not been repaid.
"Their past record is simply not acceptable and we must see positive changes during the next year."
The KIA picked up the $25,000 tab for audits on Sakku during the past year.
Kaludjak says if progress in not made on Sakku's financial situation, the KIA has the power to dissolve the entire Sakku board of directors.
"I met with the Sakku board this past week and I told them the KIA wants to see a successful business corporation.
From now on, the KIA will receive business reports from Sakku every four months and every business activity will be carefully looked at."
Sakku's failure to produce its financial statements on time has caused problems for the KIA in the past, and Kaludjak told the Sakku board that will no longer be tolerated.
He says every aspect of Sakku's operations will now be carefully scrutinized by the KIA.
"Sakku has arrived at this point through, basically, poor business management.
There is a plan we're working on putting together which will see the KIA, NTI and Sakku work together to help solve Sakku's financial problems."
