Iqaluit (Dec 06/04) - The John Howard Society estimates it has already lost more than $5,000 since its two-month bingo licence expired, forcing cancellation of its Dec. 4 game.

Money raised through the bingo is used to operate programs dealing with crime prevention and inmate rehabilitation.

According to financial statements for the year ending March 31, 2004, the bingo provided $300,440 of the society's total income of $367,867.

But society members say the city has told them funds from the bingo cannot be donated back to the organization to run its programs.

When it reviewed the society's licence application in September, the city only offered a two-month permit instead of the usual half year.

Three separate licence applications have since been rejected.

"They're trying to say it's our fault, but they've been giving us the runaround," said society vice-president Jay Wisintainer on Friday. "It's very frustrating."

In October, city councillors said they wanted time to look at the organization's financial statements to ensure it was complying with the relevant bylaws.

Mayor Elisapee Sheutiapik assured the group the issue would be dealt with before the two-month permit expired. But after Saturday's cancellation, Wisintainer said the society plans to seek compensation from the city amounting to the estimated value of money lost.

Because bingo profits make up a big share of the society's budget, salary cutbacks at the non-profit organization are being considered and a Christmas feast may be reduced in scale.

City chief administrative officer Ian Fremantle said he would not comment because both sides now have lawyers.

Council is expected to discuss the issue during an in camera meeting Dec. 7.