Kerry McCluskey
Northern News Services

IQALUIT (Nov 01/99) - The Government of Nunavut released their final financial figures on the Office of the Interim Commissioner last week.

And there's good news and bad news.

The good news is that $12 million worth of capital assets, including office furniture and computers, was transferred to the GN from the OIC.

The bad news is that the OIC's books show a $4.3- million deficit.

Confirmed by a recent audit done by the Auditor General of Canada, the net loss was amassed in the OIC's second and last year of operations, primarily, the GN said, in developing the new computer systems for Nunavut.

While the interim commissioner (Jack Anawak and then Joe Kunuk) and his staff were technically employees of the Department of Indian Affairs and Northern Development, the GN has been left to cover the loss.

"The OIC made all the decisions and incurred all the expenses on behalf of the Government of Nunavut," said Finance Minister Kelvin Ng. "They had legal authority prior to April 1 so really, they were acting on our behalf so it's our liability," he said.

Premier Paul Okalik approached former DIAND Minister Jane Stewart about the matter earlier this year, but an offer of financial assistance did not materialize.

However, the $4.3- million deficit won't be covered by diverting budgeted money from needed services. Instead, Ng said the money would come off Nunavut's share of the assets they're going to receive from the GNWT this December following the final division of assets and liabilities.

While the situation seems to have been settled, some critics of the OIC are pointing fingers and suggesting that Anawak spent money unwisely, thereby being forced to initiate last December's hiring and travel freeze.

When asked if there was any truth to that, Ng said the OIC never went public with their financial statements, but many people assumed they were experiencing financial difficulties.

"They didn't say that, but everybody assumed that because the rumour was they didn't have any money and they couldn't pay their bills," said Ng.

However, he defended the OIC and said that the net loss was created by not being given enough money to set up Nunavut's framework.

"Everybody took their positions in good faith. I don't think anybody intentionally went out and created a deficit or acted irresponsibly."

That's an opinion that former GNWT deputy premier Goo Arlooktoo echoed.

"The federal government was pretty much in control and they determined the amount of money the OIC could use. (The GNWT) expressed our concern that they may be underfunded and we had known they didn't have enough money," said Arlooktoo.

"The general public, including (the GNWT), knew money was in short supply."