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Jorge Barrera
Northern News Services
The band is preparing the legal ground work for the new corporation but needs community approval to make it a reality. The community will get a chance to voice its opinions during a membership meeting in mid-February.
"We've grown so much in the last 10 years we need to restructure," said Steven Conway, Rae band manager.
Band members are waiting for the meeting before they pass judgment on the plan.
"I really don't know yet, I need more information," said Rae resident Bobby Dryneck.
The Rae band saw its finances explode over the last 10 years. According to a media statement prepared by Barry Conacher, senior officer with the band, the band generates annual revenues of $30 million in business ventures and controls assets of about $14 million.
This, from an "almost" zero base, 10 years ago, he stated. George Mackenzie, Rae band councillor, said 10 years ago the band had a paltry $480,000 budget with no businesses.
It was in 2000 that things starting rolling, with the signing an impact benefit agreement with Diavik Diamond Mines, giving the band seed money to launch ventures.
The community is currently negotiating with world diamond leader De Beers.
The seed money allowed them to purchase the Rae Motel and Wolverine Sports in Yellowknife.
They now own Rae Band Construction Ltd., have part ownership in the Arslanian diamond polishing building and control in Tli Cho Logistics. No name has been selected for the new corporation yet but a search for the chief executive officer is soon to begin, said Conway.
Board to be struck
The corporation will have a board of 12 appointed by the band council. Three councillors, three Northern industry representatives and six band members will sit around the table.
Mackenzie said the restructuring is necessary to separate business from politics.
"If you want to have success you have to separate business from politics," he said. "They don't mix."
The creation of the corporation could also mean more employment for the community, said Mackenzie. The band employs 150 people at the moment.
The band came under heavy criticism last year from some residents who complained councillors lacked transparency. The band responded with an open meeting earlier this month where they opened their books to the public.
Mackenzie said dissent rose from a breakdown in communication between the band and the community.
"There was a misunderstanding there," said Mackenzie. "We are working on our accountability to clear things up." Cifford Daniels, band sub-chief, said economic development is essential for the health of the community but it needs more of an inward focus.
"Maybe we should be investing more in starting businesses here," said Daniels. "But economic development is important, I don't want children here to be under UNICEF."
