Richard Gleeson
Northern News Services

NNSL (Nov 16/98) - The premier can not see why people are making such a big deal over the Lahm Ridge Tower lease extension.

"I have not, to this day, recognized Lahm Ridge Tower as being a sensitive political issue," said Morin last Tuesday, responding to questions from commission lawyer Kent Davidson.

The government's August 1997 decision to extend the lease is among the eight items under investigation in the conflict of interest complaint against Morin.

Following Morin's statement, Davidson ran down the circumstances of the deal which gave rise to the investigation of it, among them:

• Bailey left his job as the government's top bureaucrat nine months before getting involved in the Lahm Ridge Tower Deal.

• Bailey lives with Ferne Babiuk, principal secretary to the premier and who he described as his most trusted political advisor.

• Bailey and Mike Mrdjenovich, who purchased the building, are both friends of the premier.

• The lease extension was finalized in spite of the fact the government was in the process of studying its office space needs in Yellowknife with a view to reducing its costs. The previous owner was told the study was the reason government would not renew a long term lease it held on the building.

Morin said the lease extension on Lahm Ridge Tower was only controversial because Hay River MLA Jane Groenewegen, who filed the conflict of interest complaint against the premier, made an issue of it.

"I think she made sure that a lot of other people have concerns (about the deal)," said Morin.

He said any questions he had about the deal were answered by a briefing meeting held after the lease had been extended.

At that meeting, Morin recalls being told the extension would save the government money and that none of the government offices there would have to be moved.

Morin said he did not learn Mrdjenovich and Bailey were involved in the purchase of the building until after the building changed hands and the lease was extended.

Earlier in the inquiry, the bureaucrat dealing directly with the lease extension said Morin had nothing to do with it.

Vince Dixon, superintendent of Public Works and Services, said he had no contact with the premier "prior to, subsequent or during" negotiation of the lease extension.

Dixon's testimony was refuted by that of two other public works employees. Mike Oram and Chris Morgan told the inquiry last month that at a meeting in early December of 1997, Dixon told them the premier had instructed him to extend the lease.

Mrdjenovich testified that one person driving both the purchase and the lease extension was Yellowknife real estate agent Ken Pearman.

Mrdjenovich said Pearman first informed him of what a good buy the building was and kept calling him about it, at one point saying he wanted the deal to go through so he could buy a new BMW.