Darrell Greer
Northern News Services

Kivalliq (Sep 26/01) - Nunavut Tunngavik Inc. is stepping up to the plate to bail out Sakku Investments -- again!

Sakku Investments is the financially plagued investment arm of the parent Kivalliq Inuit Association.

NTI's board of directors passed a resolution during its board meeting in Qikiqtarjuaq earlier this month to provide Sakku Investments with $1.2 million in funding through a loan agreement with the associations in the fiscal year 2001-02.

Sakku Investments requires at least $2.2 million during the next two years to pay down its debt.

Association president Paul Kaludjak says the loan will be voted on during NTI's annual general meeting in Panniqtuq next month.

He says if approved by NTI's board, the KIA would administer the funds.

"An agreement between us (KIA) and Sakku will have to be drawn up and signed by both parties before we would administer the funds," says Kaludjak.

"A plan is already in place for that money. That's why it's for that specific amount and spread out over two years."

If approved, Kaludjak says the loan will allow Sakku Investments to overcome past financial difficulties by paying down existing expenses.

The loan evolved from an announcement made this past May by former NTI president Paul Quassa that the Sakku would receive $750,000.

"There really were two opinions on that which may have confused things," says Kaludjak. "The KIA had wanted for that money to paid in the form of a grant, but NTI said it was an advance and there was no stipulation on whether it was a grant or a loan.

"That held up the process a bit, but, it's clear now, this needs to be a loan."

Kaludjak says the investment firm is already showing signs of turning things around, as evidenced by the fact its fiscal year of 2000-01 is showing the company in the black for the first time.

"We have every confidence, with the financial pressure this loan will take off the corporation, it will continue to turn things around."