SOMBA K'E/YELLOWKNIFE
David Ramsay is defending his appointment to the Fortune Minerals board of directors less than six months after leaving cabinet.

David Ramsay, former minister of Industry, Tourism and Investment, has been appointed to the Fortune Minerals Ltd. board of directors. - NNSL file photo

The former minister of Industry, Tourism and Investment has been under fire in recent days for accepting the job, which some have viewed as a potential conflict of interest. Ramsay said he has done nothing wrong.

"I'm going to be unapologetic here, the letter of the law was followed," Ramsay said in response to criticisms from David Connelly, investor and owner of consulting firm Royale Enterprises Ltd., who penned a guest comment on the issue in today's Yellowknifer.

"It's a lot of sour grapes if you ask me."

Ramsay established his own consulting business, RCS Ltd., after being defeated in the fall election.

Connelly, who declined to comment for this story - pointing to his guest comment instead - stated nonetheless that guidelines for former ministers aimed at preventing potential conflicts of interest after leaving office are too weak and should be revised.

Legislation prohibits former ministers from joining corporations they've had "significant official dealings" with for a year after leaving office, commonly called a cooling off period.

However, exemptions allow the conflict of interest commissioner to rule on appointments.

"You can drive an ore truck through the current exemptions process and it does the NWT, the GNWT and industry no favours," stated Connelly. "To the average person it stinks. It stokes distrust and disrespect."

The appointment was given the green light in early March after Ramsay sought advice from the NWT conflict of interest commissioner David Phillip Jones. The commissioner is an arms-length government officer who investigates potential conflicts.

"If it were necessary for me to do so, I approve your accepting the appointment to the board of directors of Fortune Minerals now, prior to the expiration of the 12-month transition period," wrote Jones, who is also a lawyer, in a letter Ramsay had provided to another media outlet.

While he is allowed to sit on the board, it came under the condition he not lobby current cabinet ministers or GNWT officials on behalf of Fortune until the so-called 12-month cooling off period ends.

"The exemption appears to bend the Conflict of Interest guidelines and raise questions about their effectiveness," Connelly wrote.

Connelly questioned why the commissioner only seemed to rely on information provided by Ramsay about whether he had "significant dealings" with Fortune as minister.

The commissioner's letter states Ramsay had told Jones he had made no decisions as minister that particularly affected Fortune Minerals or its operation.

Ramsay met with the company about twice per year to get updates on its progress during his term, according to the letter. In his interview with Yellowknifer, he reiterated he had no official dealings with the company beyond receiving updates.

Ramsay said he understands he can't in anyway reach out to the GNWT during the cooling-off period.

There are a number of things he can do, such as finding other investors, talking to aboriginal governments and promoting the opportunity, he said.

Fortune's planned NICO mine near Whati would extract gold, cobalt, bismuth and copper.

Fortune touted Ramsay's former role as minister of the "preeminent mining portfolio" in a news release announcing his appointment April 18.

Ramsay was minister of Industry, Tourism and Investment for four years until he was unseated in the territorial election last fall. He also had served as transportation minister before a cabinet shuffle moved that portfolio to Tom Beaulieu. While ITI works to promote the territory as a place for industrial development, it isn't responsible for enforcing regulations.

Fortune minerals was trading at 13 cents a share yesterday - up from eight cents Friday.

Interview requests with the conflict commissioner last week and this week were not returned.