Adam Johnson
Northern News Services
Published Friday, December 21, 2007

YELLOWKNIFE - There's a lot of variety on a recent list of recipients of government business loans: a general store, a heavy metal band - even one man later convicted of sexually assaulting minors.

Thirty-four recipients received a total of $6,591,055 in loans and contributions from the Business Development and Investment Corporation (BDIC) in 2005-06. Recipients must account for how the grant money is spent.

Ts'Iwa Inc., which is run by the Tree of Peace in Yellowknife, received the largest amount with a $1,135,329 loan. The smallest was a $4,800 contribution, which went to Slanigiro Records and Production in Fort Smith - also known as Northern heavy metal band State of the Art.

Six of the businesses receiving money are owned wholly or in part by the BDIC, funded through its subsidiary program. The list includes Acho Dene Native Crafts in Fort Liard and the Nahanni Butte General Store.

Sex offender Marvin Lizotte was a recipient for 2005/2006. He received a $6,955 contribution for his tourism company Viking Expeditions, according to the corporation's annual report.

This summer, Lizotte pleaded guilty to three counts of sexual exploitation for having sex with students while he was a teacher at Deh Gah school in Fort Providence, and was sentenced to 14 months in jail. He was first charged in January 2006.

About $200,000 worth of loans and contributions have not been made public. A footnote in the report states these recipients have "elected not to permit" BDIC to publish their information in the annual report.

Pauline de Jong, manager of policy, accountability and communications with BDIC, said the public organization would not provide "any information on any individual applicants," due to privacy concerns.

"I cannot make public who that was and what the totals are," de Jong said.

While BDIC's policy is to make all recipients public, de Jong said the businesses in question signed on before BDIC was created in 2005, and were given the option to keep their loans private. The Business Credit Corporation (the corporation's precursor) only published the amounts of defaulted loans.

In 2005, Northern News Services, Yellowknifer's parent company, filed an access to information request, forcing the corporation to reveal more than 100 loan recipients.

At the time, the corporation had a $3 million deficit, and bad loans made up a quarter of its $41.5 million loan portfolio. De Jong said BDIC could not reveal its present financial status until its financial statement is tabled in the legislative assembly.

She said there is no set timeline for the release of that document.

BDIC is meant to be a lender of last resort, and its predecessor was known to invest in businesses - such as clubs and restaurants - that have trouble obtaining traditional loans.

Jamie Chabun, drummer for State of the Art, said BDIC funding is vital for non-traditional businesses to gain some ground.

"Sometimes little businesses like ours just need a little push in the right direction," he said of the money, which was used to promote the band's first album.

"It's helped unimaginably."