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IQALUIT - Allegations of theft, fraud and inappropriate use of resources against two Qulliq Energy Corporation employees are being investigated by the RCMP, the police stated in a press release Friday.

RCMP Cpl. Denis Lambe said police were made aware of the allegations on July 4. The federal enforcement section in Iqaluit is looking into the matter.

The accusations stem from questions South Baffin MLA Fred Schell asked Lorne Kusugak, the minister responsible for Qulliq Energy, in the legislature, according to the press release.

"It was alleged that both employees used telephone poles from Qulliq Energy and Qulliq Energy employees to build a retaining wall on their personal property in Iqaluit," Cpl. Lambe wrote in the press release.

In the legislature on June 7, Schell stated he tabled two pictures depicting work being done at a residential home, a home he stated he understands is owned by Qulliq Energy president Peter Mackey.

"Basically, what was done on site was some landscaping and creating a retaining wall," stated Schell. "There was approximately 16 hydro poles used, four or five steel pilings."

Kusugak responded he couldn't tell from the photo whose house it was, adding "it doesn't look anything like the president's house."

He stated he would not answer Schell's question on the subject.

"I cannot answer hearsay," said Kusugak. He later added "There is nothing confirming anything. It's just allegations."

Mackey responded to the allegations in media reports through a press release.

"Firstly, I can confirm that the residence in the photograph is not my personal residence but is in fact a dwelling owned and occupied by a family unrelated to me," he stated. "Secondly, allegations that suggests the use of corporate resources for personal benefit are unfounded and incorrect."

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