Cash questions
Aurora Fund questions remain unanswered

by Richard Gleeson
Northern News Services

NNSL (Oct 13/97) - It was initiated by the territorial government, with public money, but the Aurora Fund is no more open to public scrutiny than any private investment fund.

Last year, when it launched the first Aurora Fund, the government seeded it with $380,000. In April, Premier Don Morin headed up a trip to Taiwan, Hong Kong and Korea to promote the fund.

On his return, Morin spoke of the "overwhelming" interest Asians expressed in the fund. Finance Minister John Todd has often talked of the "success" of the first fund and the promise of another launched on its heels.

There are no numbers available to support the tub-thumping, likely aimed at buoying investor confidence.

Asked if any units in the first fund were available for purchase, fund administrator Roland Bailey hesitated, then said, "I won't comment on that at this time."

Bailey would also not say how much money had been invested in NWT businesses, how many businesses had received capital or how many businesses had applied for capital.

Bailey did say applications started coming in last November.

The Aurora Fund was developed to generate capital to invest in Northern businesses. For an investment of $250,000 a share, potential immigrants get a piece of the fund (and any gains or losses it incurs) and a fast track to Canadian citizenship.

The quarter-million-dollar price per unit, said Bailey, is one of the lowest of any immigration funds in Canada. During sales of the first fund, GNWT officials said the second would likely sell for $350,000 a share. The price remained unchanged.

If sold out, both the first and second funds would generate a total of $60 million in investment capital.

Responding to questions in the assembly this week, Todd explained why he would not give information.

"The way I envision it right now is independent of government, and it is set up in a manner where political interference is nil," said Todd.

He said an investment committee made up of southern appointees to ensure any appearance of political interference is avoided.

But the committee's decisions are subject to the approval of the fund's board of directors. The board is composed of Todd, fellow cabinet minister Stephen Kakfwi, and high-ranking GNWT bureaucrats Andrew Gamble, Lew Voytilla and Don Cooper.

On Thursday Todd told News/North the board involvement is strictly a formality.

"We see the loans coming up, either approved or rejected by the investment committee and all we do is rubber-stamp it," said Todd.

He said the committee does not have the power to change or reconsider a committee decision.

"Let's be clear -- we can't. It's not structured that way," said Todd.