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IQALUIT - The Nunavut Business Credit Corporation is taking strides to rectify its history of mismanagement while still under investigation by RCMP.

Peter Ma, acting chair of the lending agency, said the corporation should have a full-time CEO and an operating procedures manual by June, after which he expects the investigation will come to an end.

"Obviously, the RCMP won't divulge a lot of information," he said. "In my own view, it would likely be concluded this summer."

The territorial government, following a scathing report on the crown corporation from the Auditor General in 2007, initiated the police investigation into the agency as well as conducted their own review through a legislative committee.

The audit of NBDC revealed mismanaged loans and records kept so poorly that she could not give an opinion on financial statements.

While then finance minister David Simailak requested the RCMP investigation, he himself was later found in contravention of the Integrity Act, having failed to disclose his business interests and observe the blind trust provision with respect to companies in which he had an interest, two of which were approved for $1 million loans by the NBCC.

Since the Auditor General's report and recommendations, the corporation is trying to get back on its feet, implementing those steps outlined in the government's action plan for the organization, according to Ma.

A "fair amount" of these actions have been initiated, he said, noting that the board is currently working on filling in the gaps on the agency's loan files where there is insufficient documentation.

"We're trying to cross our T's and dot I's in terms of due diligence on these loans," confirmed Tim Brown, acting chief executive officer. "We're being a lot tighter on the requirements. We want to raise the standard above the level of 'you know me, I know you.'"

In the past year and a half, the corporation has approved approximately six new loans and is currently processing a new application.

"We are open for business, but we're not opening the floodgates," said Brown, who has approved a couple of new loans while hunting for employees to fill key positions.

So far, three of six staff positions have been filled, though more interviews are expected to take place in the coming weeks.

Moving offices from Cape Dorset to Iqaluit has also been a key move as the corporation has previously struggled to find qualified managers who were willing to live in Cape Dorset, and frequently made do with a procession of managers who had little or no training for the job.

"It's made a huge difference," said Ma. "Obviously, we have a larger talent pool here... It has also allowed closer contact with the corporation between the GN and various government agencies."

Despite the corporation's suspicious history, the NBCC plays an essential role in assisting small- and medium-sized businesses, especially since the economic downturn, when banks are being particularly cautious about providing new loans, said Ma.

"I think there's always going to be a need (for the NBCC)," he maintained.

If the corporation is able to make the changes he believes are necessary, "we should be a major player in terms of the economic development of this territory," said Ma.