Karen Mackenzie
Northern News Services
Published Monday, December 3, 2007

NUNAVUT - Nunavut's Minister of Finance and Economic Development and Transportation (EDT) has links to three companies approved for million-dollar loans by the mismanaged Nunavut Business Credit Corporation (NBCC).

During hearings on the troubled agency at the legislative assembly, Minister David Simailak confirmed his interests in Qamaniqtuuaq Development Corp. and Ilagiiktut Ltd., which owns Kangiqliniq Development Ltd. Simailak told the Standing Committee on Government Operations and Accountability on Nov. 29 that he did not know about the loans until the list was made public last week, as his business interests were placed in trust when he became a minister.

As minister of EDT, Simailak is responsible for the NBCC. According to a list of loan recipients released by the GN, Ilagiiktut was approved for a $1 million loan on July 21, 2005. Kangiqliniq Developments Ltd. received a $1 million loan on that same day.

Simailak had temporarily resigned as minister of EDT shortly before the loans were approved, when he picked up the finance portfolio in June 2005. He resumed his position with EDT in late 2006.

Qamaniqtuuaq Development Corp. was approved for a $1 million loan on July 26, 2007.

Simailak told the committee he discussed the issue with Nunavut's integrity commissioner, Robert Stanbury, after learning of the loans on Monday. He said he asked Stanbury how he could avoid the appearance of conflict between his business interests and his responsibilities as minister.

He said Stanbury noted that only a small number of people have the experience to work in both the private business sector and government.

"A means would therefore be needed to permit that small group of people to move between the public and private sectors, while maintaining acceptable standards of government oversight, transparency and accountability," Simailak said.

Stanbury emphasized that the key is for the minister responsible to have no knowledge of, or dealings with, loan applications from companies in which he has an interest, he said. He added that he and Stanbury will explore the issue further.

Last week's hearings were triggered by a recent audit of the NBCC by Canadian auditor general Sheila Fraser, who reported "a serious breakdown of basic financial controls" at the agency.