Rankin Inlet (Oct 25/06) - After an audit on a wildlife board office in Arviat uncovered missing money and unpaid taxes, police have been called in to investigate.

After a meeting in Rankin Inlet last week, the Kivalliq Wildlife Board (KWB) turned over financial records from 2003-2005 on its former regional office in Arviat to RCMP in hopes of finding out what happened to $138,863.

Hundreds of people line the shore as Repulse Bay hunters return with a record-sized bowhead whale in August of 2005. The Kivalliq Wildlife Board managed funds distributed to Hunters and Trappers Organizations like the one in Repulse Bay which organized the whale hunt. The KWB is investigating financial irregularities at its former Arviat regional office. - NNSL file photo

The Arviat office was closed in August 2004 after an operational review found problems with how money was handled.

At the time, the KWB received core funding from the Nunavut Wildlife Management Board. Money was then forwarded to Hunters and Trappers Organizations (HTO) around Kivalliq.

The audit not only found money missing, but discovered about $191,000 of income tax was deducted on salary and honoraria paid to HTO managers and others in four communities during a 30-month period.

After discovering the problem, the board has paid Revenue Canada.

There is still $51,000 left owing through interest and penalties, which the KWB is trying to have forgiven under fairness legislation.

KWB secretary-treasurer Willie Nakoolak said five Kivalliq communities were affected, as their HTO's core funding was part of the money unaccounted for.

Three of the five communities suffered major financial loss. He would not name the communities while the matter is still under investigation.

"We did most of the legwork for the RCMP, so we don't expect the investigation to last long," said Nakoolak.

"We will also contact the former administrative head of the Arviat office to advise her of what has taken place."

The first warning of something amiss at the regional office came in 2003 when financial reports were slow in coming to the NWMB.

According to Nakoolak, every attempt to obtain the reports was met with stalling tactics.

Nunavut Tunngavik Inc. then got involved and, in the spring of 2004, the three organizations pursued the matter aggressively.

The regional office was closed at about the same time the KWB voted in favour of establishing the Wildlife Secretariat to handle its finances.

It took the new secretariat six months to recreate financial records to the point audited statements could be prepared.

The KWB met in April 2006 to review the statements and immediately contacted Revenue Canada.

Nakoolak said many KWB members feel betrayed by the Arviat situation.

"We never expected anything like this to happen," said Nakoolak.

"It's obvious, by our decision to turn the matter over to the RCMP, we don't see this as any kind of mistake."

Revenue Canada has given a vote of confidence to what the secretariat is trying to accomplish, and has given it some flexibility to get the issues cleared up, said Nakoolak.

During an August training seminar in Rankin, it was estimated about half of Nunavut's 27 HTOs and three regional boards owed money to Revenue Canada, with at least six owing a substantial amount.

Secretariat executive director Richard Connelly said a fairly positive relationship has been established with Revenue Canada.

He said the secretariat is trying to impress upon the HTOs how serious an issue non-payment of taxes can be.

"If, for some reason, a HTO or regional organization shuts down and they can't collect the money, Revenue Canada will go to the board of directors list and divide the amount owing among them.

"So there's a personal liability attached to this."