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SOMBA K'E/YELLOWKNIFE
Daryl Dolynny says his offer to resolve a GNWT lawsuit against him the day after winning his Range Lake seat was because he had little time to act before being sworn in as an MLA.

Daryl Dolynny: Sent e-mails to BDIC lawyer seeking deal over lawsuit. Bill Turner: Accused of leaking confidential information. Aurora World lawsuit goes back nearly three years Shoppers Drug Mart owner and recently elected MLA for Range Lake Daryl Dolynny was named in a Dec. 16, 2008, statement of claim by the Business Development Investment Corporation in which it was claiming $1,104,997 plus interest and costs for loans that went unpaid when tourism company Aurora World Corporation (AWC) folded in 2007. The action named AWC, Dolynny and his three partners -- Alex Arychuk, Grant Beck, and the NWT Metis Development Corporation as defendants. In 2004, after AWC took over from the failed Raven Tours, BDIC was owed $1.8 million for loans originally made to 994494 N.W.T. Ltd. and Raven Tours Ltd. As part of the restructuring, the loans were consolidated and the government agreed to forgive $815,000, provided Aurora World Corporation repaid the remaining $1 million with interest at 7 per cent per annum. According to the statement of claim, the loan was in arrears by Nov. 30, 2008. The claim alleges that Dolynny, Arychuk, Beck and the NWT Metis Development Corporation had guaranteed the payment of the loan to AWC by which any or all of them had to pay $100,000 if AWC defaulted on its promise. In suing the guarantors, BDIC was calling them on their obligation. In their statement of defence, the partners "deny each and every allegation contained in the statement of claim." Their defence, in part, was that they were assured by BDIC staff that, in return for their involvement and exercise, the $100,000 guarantee "was a mere formality" and would not have to be repaid.

"I haven't done anything wrong," Dolynny told Yellowknifer last night.

"Waking up the next morning to see your e-mails when you're talking to your banker on the front page is troublesome, obviously."

• Statement of Claim
• Statement of Defence

In his e-mail to McNiven, Dolynny proposes to help the government rid itself of a "very expensive problem," by supplying information about Bill Turner, a BDIC employee whom he accuses of leaking confidential information about Dolynny's government loan to the media before the election.

"As I see it, Mr. Turner has an affirmative action grievance against BDIC and the GNWT that if successful ... could have disastrous financial and HR implications," Dolynny writes.

Turner launched an affirmative action lawsuit earlier this year, challenging the government's hiring policy regarding First Nations job applicants from outside the NWT. The Dene Nation later lent its support to Turner's lawsuit, saying the existing policy is outdated and unconstitutional.

"I believe my involvement, testimony and proof, could rid yourself of this very expensive problem at the same time, rid ourselves of the AWC issue," Dolynny continues in the e-mail.

Dolynny was named in a Dec. 16, 2008, statement of claim by the BDIC in which it was claiming $1,104,997 plus interest and costs for loans that went unpaid when tourism company Aurora World Corporation (AWC) folded in 2007. The action named AWC as well as Dolynny and his three partners -- Alex Arychuk, Grant Beck, and the NWT Metis Development Corporation as defendants. (See related story on AWC lawsuit).

'Slanderous media circus'

According to Dolynny's e-mail to McNiven, Turner's so-called "leak" fuelled a "slanderous media circus" at the start of his election campaign. (Yellowknifer obtained details of its pre-election stories on the lawsuit through publicly available court records. CBC is reporting the same.)

"One only has to look at the election results to see that although I did win, this very situation had a very slanderous effect on my professional political career and will have for many years to follow," Dolynny writes.

The first-time candidate won the election with 277 ballots cast in his favour, beating his closest challenger David Wasylciw by 67 votes.

Dolynny further states the offer to BDIC is only good until he is sworn in as an MLA, Oct. 17.

In a letter attached to the e-mails, the investment corp.'s CEO Chugh states "the potential breach of confidentiality is a completely separate issue from the ongoing Aurora World litigation" and the affirmative action lawsuit launched by Turner.

"I want to be clear that we will not engage in any types of negotiations in exchange for information concerning such alleged breaches," Chugh adds.

When reached for comment, Turner said he has been advised by a labour relations officer not to comment on Dolynny's allegations.

Bob McLeod, minister responsible for the BDIC, said he hasn't read the documents in detail but said Dolynny's proposal is not something the NWT conflict of interest commissioner could deal with because Dolynny hasn't been sworn in yet as an MLA.

"In the normal course of business (Dolynny's proposal) doesn't change anything," said McLeod. "It's not unusual for clients to make proposals to the BDIC board in regards to their accounts."

Dolynny told Yellowknifer BDIC initiated contact with him over his allegations involving Turner before the election, and in fact, wanted to meet with him on Election Day. Yellowknifer could not confirm that before press time.

He also said he's sorry Range Lake voters had to read about his e-mails in news stories, and in hindsight would have written differently.

"I apologize that they're having to read this," said Dolynny.

"No one expects to have their e-mails to their banker intercepted illegally and broadcast. I don't think anyone would want that to happen."

Dolynny said he's been told the RCMP is investigating the leaked e-mails and he looks forward to the outcome of its investigation.

On the matter of the territorial government's affirmative action policy, he said he didn't really have a position and couldn't speak to it.

Click here to see the Statement of Claim and the Statement of Defence.

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