Karen Mackenzie
Northern News Services
Published Monday, December 17, 2007
NUNAVUT - Nunavut's Minister of Finance and Economic Development, David Simailak, resigned last week amid concerns that he is linked to companies which received loans from the troubled Nunavut Business Credit Corporation (NBCC).
"He came to the conclusion that his personal business interests had a role at one point or another in his ministerial responsibilities, and he felt that it was in the best interests of our government to resign at this time," said Premier Paul Okalik, shortly after the announcement was made public.
According to Okalik, Simailak made the decision after discussing the matter with him over several days.
"I appreciate the admirable step that he took today in resigning, and I will miss his advocacy for the business sector in particular for Nunavut," he said.
Simailak will continue on as MLA for Baker Lake.
Minister Louis Tapardjuk was given the role of finance minister, in addition to his role as minister responsible for Culture, Language, Elders and Youth.
The Economic Development and Transportation portfolio was given to Minister Patterk Netser, who was previously responsible for the Department of the Environment and the Workers Compensation Board.
Olayuk Akesuk, who was previously the minister responsible for Nunavut Housing Corp., took over both those files.
The Nunavut Housing Corp. went to Netser.
Simailak confirmed during hearings three weeks ago that he had links to a trio of companies that were approved for $1 million loans by the NBCC - Qamaniqtuuaq Development Corp. and Ilagiiktut Ltd., which owns Kangiqliniq Developments Ltd.
However, his 2007 ministerial disclosure statement did not list Kangiqliniq Developments Ltd., a wholly-owned body of Ilagiiktut Ltd. Nor do his statements from 2004, 2005 or 2006.
Nunavut's Integrity Act states that ministers disclose all business interests.
The NBCC was harshly criticized last month in a report by auditor general Sheila Fraser, who found a number of irregularities in the lending agency's activities.
A further blow was dealt to the embattled NBCC late last week, when local media began reporting that Allan McDowell, the corporation's interim CEO, was facing charges of theft and fraud stemming back to 2005 when he was an employee of Arviat's Eskimo Point Lumber Supply Ltd.
McDowell has been charged with two counts of theft of cheques and a laptop computer, and two counts of fraud under $5,000. The charges were laid shortly before McDowell was hired at NBCC in April 2006.
He's scheduled to be in court in Arviat on Jan. 28.
"I don't believe it would be appropriate for me to comment until after the trial. I would rather defend myself in court rather than in the newspapers," said McDowell, who has pleaded not guilty. "I'm looking forward to clearing my name."
McDowell said he would likely remain in place until Jan. 7. The newly-hired CEO takes over on Jan. 8.
"Someone had to step up into the CEO's spot, and I knew that by being in the spotlight this would probably occur. But it had to be done," McDowell said.
A number of issues over the past year, including many surrounding NBCC, have shaken the public's confidence in the Nunavut government, according to Iqaluit Centre MLA Hunter Tootoo.
Tootoo said last week he believes the government should call for an early election in 2008, rather than waiting until February 2009, when it is scheduled.
"I think if we're serious about restoring public confidence we should go to the polls, have an election this spring," said Tootoo, who sits on the Standing Committee for Government Operations and Accountability. "Whoever they are will have a fresh mandate and the confidence of the people who put them there."
Tootoo said the committee will continue to investigate the issues surrounding NBCC, and that most of the former employees have been contacted to speak with the committee in early February.
"Just because the minister stepped down doesn't mean that committee is going to drop it," Tootoo said.
