Dogged by questions, &#39c;orporation; announces bonus inquiry

INUKJUAK – "It hasn't been easy," said Pita Aatami, moments after he won election March 27 as Makivik Corp.'s president for an unprecedented fifth straight time. "It's a relief to know that I still have the confidence of the people."

That relief was obvious on Aatami's face as results of the vote were read to the crowd gathered in Inukjuak's Innalik School last Friday.

The gathering took place at a time when money – of the kind that is wanted and also the kind that is paid – was on everybody's mind.

Early in the week, with Quebec's minister of native affairs, Pierre Corbeil, listening, Aatami made a point of calling upon the province to do more to alleviate the ballooning cost of living in Nunavik. Aatami stated that basic expenses in the North can be two or three times greater than in southern ­Quebec.

"That's what I kept hearing about this week," Aatami said just after his victory. "And that's the one thing I feel we really must do something about."

Aatami received 1736 of the ballots cast by Nunavik Inuit, 49 percent of the total. Yet he got the most votes in 12 of the 15 communities.

His three opponents got 1,797 of the ballots, with Liberal Senator Charlie Watt capturing the most among the also-rans, with 1024 votes. Watt led in just two communities.

Voter turnout was at 53 per cent.

The election campaign was overshadowed by the controversy over the cash bonuses paid to the board members of Makivik-owned First Air. All of Aatami's challengers slammed the corporation for the lucrative personal payouts.

Talk of the bonuses drowned out good news about Makivik's financial performance. The corporation has maintained a stable investment portfolio – with modest gains – throughout the global economic meltdown, which began last autumn.

Treasurer Anthony Ittoshat said he expected the solid performance to continue through the current fiscal year. He said the bonus payments had no impact on the legacy of beneficiaries' equity flowing from land claims treaty compensation.

But in an hour thick with dramatic tension, two of the original signatories of the James Bay and Northern Quebec Agreement came to the annual meeting to spearhead the public's objections to the bonuses.

"The profits of the subsidiaries are being allocated to a select few and this is wrong," said Sarollie Weetaluktuk. "We want all the money to be given back."

Peter Inukpuk, quoting from the Makivik Act that created the corporation in 1978, delivered a statement about accountability and about how ethical conduct is at the heart of Makivik's purpose.

"Funds are to be used to alleviate the population's poverty and to improve the quality of life in the communities," he said. "The corporation is not a profit-making entity and any revenues from the subsidiaries are not to be used by individuals."

Both Inukpuk and Weetaluktuk are from Inukjuak. The large Hudson Bay community has been identified as the poorest in Nunavik.

Employment opportunities are scarce there and many residents rely heavily on last-resort social assistance. More of Inukjuak's voters chose Watt over Aatami in this election.

"We without jobs are struggling," Weetaluktuk said. "But you with jobs are getting bonuses. How are we being represented by you?"

Presidential candidate Lucy Tukkiapik Carrier berated Pita Aatami publicly for the way First Air's profits were distributed. Aatami is reported to have received a $600,000 bonus.

"A company's first priority is to pay off its debt," said Carrier. "Why were bonuses paid to the board first?"

But Aatami denied that $13 million in Inuit beneficiaries' equity borrowed to purchase First Air was supposed to be returned automatically to all Nunavimmiut once the company became profitable.

"We still need a debate among beneficiaries about how that money is to be distributed," he said.

And debate he got. The public criticism took on a sharper tone as the meeting learned of plans to conduct a thorough investigation into the airline bonuses after the election.

Weetaluktuk and Inukpuk cautioned Aatami not to attempt to obstruct that inquiry lest the corporation and its subsidiaries' activities be frozen by the threat of legal manoeuvres.

Aatami defended the payments made for years served on the airline's board. He insisted the compensation was fully legal and did not violate Makivik's purpose in any way.

He singled out Nunatsiaq News for its reporting of the affair. And he underlined First Air's excellent financial performance during the past decade.

"We offer many programs to help alleviate the high poverty rate in the region," he said. "We need to look at putting a cap on bonuses, but I have never tried to get big bonuses for myself, I have never tried to hide anything or steal anything. Yet we are being treated as if we have stolen."

Quaqtaq Mayor Johnny Oovaut – who also ran for the job of Makivik president – remained dead-set against the bonuses. "It's wrong," he said. "Have a conscience."

But others at the meeting openly supported the right of the First Air directors to receive the rich rewards.

"We often ponder how we can express our appreciation to our employees and to our elected," said Makivik director Noah Tayara.

Members of the corporation's board were alleged to have received payments in exchange for approving the airline bonuses, an accusation Tayara denied. "And we will not stop the practice of paying out bonuses," he said.

Bobby Aculiak appealed for solidarity in response to the growing bitterness of the feud.

"We are not many in number and we are still in a developing stage," he said. "Let us praise the activities of our corporations when they are doing well."

Lucy Carrier suggested that full disclosure of the reasons behind the payments would go a long way towards fostering understanding.

"This way the beneficiaries may support the bonuses rather than object to them," she said. "I want to see the documents to understand the principle behind all this."

Aatami struck a conciliatory tone by welcoming all questions about the payments.

He also approved the proposal for an independent investigation into them. Treasurer Anthony Ittoshat – who received a $100,000 bonus – welcomed an inquiry too and committed to opening the corporation's books to investigators.

It remains unclear exactly how and by whom the inquiry will be conducted.