NTI provides financial aid to investment firm
Darrell Greer
Northern News Services
Rankin Inlet (Jun 06/01) - Nunavut Tunngavik Inc. has agreed to provide $700,000 to bail out Sakku Investments Corp.
Sakku is the business development arm of the Kivalliq Inuit Association, which received a request for the money during NTI's board meetings in Rankin Inlet this past week.
NTI president Paul Quassa says the money will provide Sakku with a temporary financial reprieve until a financial investment analysis has been completed.
The analysis is under way and Quassa expects it to be completed by NTI's next board meeting in September.
"NTI's position has always been to ensure all birthright corporations are successful," says Quassa.
"We are there to ensure they have enough equity funding and capital to pursue their goals."
Quassa says NTI created birthright corporations with the expectation of a good return -- in terms of Inuit employment and training.
He says while the birthright corporations have, for the most part, been successful in those areas, NTI has been keeping a close eye on Sakku's financial difficulties of the past few years.
"Now was the right time to step in and give Sakku some assistance to help them successfully play their role as they should within the region.
"However, that success is the responsibility of the corporation itself."
KIA president Paul Kaludjak says the request for a bail-out was contained in a Sakku recovery plan, which was requested by NTI and cleared by the Nunavut Investment Review Committee before being presented at last week's meetings.
"The KIA, as the parent organization, had to approve the plan before its submission to NTI," says Kaludjak. "We're hoping this money will allow Sakku to start fresh and be successful."
Quassa would not comment on further NTI involvement should Sakku's performance not improve.
"I can't speculate on what's going to happen in the future, other than to say NTI is not a babysitter for these corporations.
"We have confidence Sakku will be up and running as a successful corporation, but it's up to them to prove that confidence is justified."
