SOMBA K'E/YELLOWKNIFE
Following a year that saw Det'on Cho Corporation fall from grace, Roy Erasmus Jr. has resigned as CEO and president of the company.

Mayor Mark Heyck, left, former Det'on Cho Corp. CEO Roy Erasmus Jr. and then Yk Chamber treasurer Renee Comeau at the chamber's president's ball on Oct. 19, 2013. Erasmus led Det'on Cho through a successful period that led to the company being named Business of the Year. Last year the company fell on hard times. - NNSL file photo

Bob Murphy, who served as co-president of restructuring, has taken on the CEO and president title with Buddy Stroich coming in as senior vice-president.

Erasmus confirmed to Yellowknifer on Feb. 5 that he had handed in his resignation earlier that day. Erasmus said he was not forced out and has resigned willingly.

He said he had been with the company for almost 10 years, starting as a manager and working his way up through the company.

"Right now, I'm just going to take some time off and enjoy my family," Erasmus said.

"I haven't had a whole lot of time to spend relaxing so I'll take some time off and think about the next adventure."

The Yellowknife Chamber of Commerce named Det'on Cho Corporation its business of the year in 2013. But then, the company faced allegations it wasn't paying some contractors as well as other financial difficulties that came to light last year.

A 2013 financial statement released last year by Yellowknives Dene First Nation showed Det'on Cho struggling with $3.3 million in net losses and $156,127 in unpaid rent and leases.

Murphy, who has been involved with Det'on Cho since its inception, will report directly to the chairman and be responsible for "ensuring profitable strategic growth," according to a news release from Det'on Cho last week.

"My role is to reorganize the organization to increase profitability and bring more participation from our membership," said Murphy on Monday.

Part of that is to address the corporation's financial situation.

"Things go wrong in business for many, many reasons," said Murphy. "Part of what went wrong with the corporation was the bypass road."

He said Det'on Cho did not do well financially on the Ingraham Trail project, putting the corporation under strain.

No more changes in upper management are anticipated, he said.

Murphy refused to call it mismanagement that steered the corporation wrong.

"Mismanaged is not a term I would use," he said. "It basically, at this point, slipped into difficulty. To use a term like 'mismanaged,' you're pointing at specific entities and I'd just as soon not say that and say that they ran into financial difficulties that have to be addressed."

Stroich will be responsible for ensuring compliance and effectiveness in the operation of the corporation.

-With files from John McFadden

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