Darrell Greer
Northern News Services

Rankin Inlet (Dec 05/01) - The Sakku Investment Corp. has agreed to pay more than $670,000 to settle a court action against it.

Sakku and the Qikiqtaaluk Corp. (QC) are the economic development arms of the regional Inuit associations in the Baffin (Qikiqtaaluk) and Kivalliq regions.

QC filed a statement of claim against Sakku in the Nunavut Court of Justice on Nov. 5.

Sakku, Qikiqtaaluk and the Makivik Corp. are joint owners of the Nunavut Umiaq Corp.

Umiaq is a 50 per cent owner in the Transport Umialarik Inc./Umialarik Transportation Inc. (TUI).

Based in Iqaluit, TUI transports cargo goods to Nunavut and Nunavik.

When TUI entered into an agreement to buy a vessel in May 2000, Makivik, Qikiqtaaluk and Sakku were each to contribute $666,666.66 towards the purchase.

Alain Duboc (Duboc/Osland Barristers and Solicitors) is the solicitor for Qikiqtaaluk.

Duboc says Qikiqtaaluk advanced Sakku's share of the contribution when it could not raise its share of the purchase price. Qikiqtaaluk filed the statement of claim after numerous requests for repayment were not met by Sakku.

Duboc says a settlement has been reached with Sakku in accordance with the claim.

He says until the settlement amount is paid, the statement of claim will stay on the books in the Nunavut Court of Justice.

"If, for any reason, Sakku fails to come through with the settlement, we would proceed with the action," says Duboc.

"It will be a lump sum payment for the total amount claimed ($666,666.66), plus outstanding interest and costs associated with the claim."

The Baffin group is expecting payment before the end of the year.

"There's every indication Sakku will be in a position to pay the amount and we've agreed to discharge the claim once payment is made."

Sakku Investment Corp. chairperson Peter Tatty would not comment on the settlement when contacted by the Kivalliq News.