Darrell Greer
Northern News Services
Rankin Inlet (Jun 11/01) - Nunavut Tunngavik Inc. has approved a $700,000 bail-out of a regional development corporation.
Sakku Investments Corp. is business development arm of the Kivalliq Inuit Association.
Word that the money was coming came when NTI met at Rankin Inlet recently.
NTI president Paul Quassa said the money will provide Sakku with a temporary financial reprieve until a financial investment analysis has been completed.
The analysis is under way and Quassa expects it to be completed by NTI's next board meeting in September.
"NTI's position has always been to ensure all birthright corporations are successful," said Quassa.
"We are there to ensure they have enough equity funding and capital to pursue their goals."
Quassa said NTI created birthright corporations with the expectation of a good return -- in terms of Inuit employment and training.
He said while the birthright corporations have, for the most part, been successful in those areas, NTI kept a close eye on Sakku's financial difficulties during the past few years.
"Now was the right time to step in and give Sakku some assistance to help them successfully play their role as they should within the region.
"However, that success is the responsibility of the corporation itself."
KIA president Paul Kaludjak said the request for a bail-out was contained in a Sakku recovery plan, which was requested by NTI and cleared by the Nunavut Investment Review Committee before being presented at the meetings.
"The KIA, as the parent organization, had to approve the plan before its submission to NTI," said Kaludjak. "We're hoping this money will allow Sakku to start fresh and be successful."
Quassa would not comment on further NTI involvement should Sakku's performance not improve.
"I can't speculate on what's going to happen in the future, other than to say NTI is not a babysitter for these corporations.
"We have confidence Sakku will be up and running as a successful corporation, but it's up to them to prove that confidence is justified."
