Lawyer fees exceed loans given out by credit corp

Hunter Tootoo, MLA for Iqaluit Centre, raised further objections to how the Kivalliq Business Development Centre has pursued one of his constituents for money.

"It's supposed to be there to develop business in the region, not to take people to court and have a nice pay cheque," Tootoo said June 6 in the legislature.

The case involves an Iqaluit couple who once ran a business in Whale Cove, and received a loan from the development centre. That business folded, and the debtors later declared personal bankruptcy.

Since May 2003, the development centre has pursued the couple in court. A document tabled by Tootoo shows the centre refuses to discharge the debtor, unless $2,073 is paid.

From 2002 to 2006, it appears the development centre has paid $190,000 in legal fees, says Tootoo, according to access to information requests he made.

That's substantially more than the $110,000 the centre loaned to small businesses, Tootoo said.

"It's about time that a serious look is taken there," Tootoo said. "I'd like to ask the minister if he's aware that for every $10 that they receive in operating costs that they lend out a dollar in loans, and for every dollar that they lend out, they spend two dollars on legal fees."

The annual salaries of the centre's employees also exceed the amount given out in loans over four years, Tootoo said.

"If this government is serious at looking at using our scarce resources wisely, I wonder if this is a wise use of our resources. We've given them, in the last four years, since 2002, $1.2 million and they've given out $110,000."

The business centre also appears to be using Tootoo's public criticism of the organization as a defence in court. The tabled document says the centre intends to refuse the debtor's application for discharge because the centre "has been receiving political attention with respect to their dealings with the debtor and her spouse."

The document says this attention "may amount to defamation." That's unusual, as usually only individuals, and not organizations, can claim to be defamed, and Tootoo's statements in the legislature about the centre are privileged and protected from a defamation suit.

"It is outrageous that KBDC is using its discomfort with my questions as a weapon in its dispute with a resident of Nunavut," Tootoo said.

"The message should worry every single member of this house and every member of the public. If you ask questions about this organization, you or those you represent will suffer."