'This is a dangerous precedent'

Senator Charlie Watt says that he's alarmed and disappointed by the bonuses that First Air board members voted to pay themselves this summer, saying they're "excessive and not in line with industry standards."

"As the founder of Makivik and the former president and chair of First Air, I am disgusted to see these payments," Watt said in a written statement Oct. 6.

"I am alarmed to think about what could happen in the future if they continue to take money from us this way. This is a dangerous precedent."

Watt is the first president of the Northern Quebec Inuit Association, the organization that became Makivik Corp. When Makivik bought First Air in 1990, Watt then served as president of the organization and became chair of First Air's board.

"In the 23 years that I represented you at the Northern Quebec Inuit Association and Makivik, I never even considered taking a large bonus payment for this kind of work," Watt said.

The bonuses made to First Air board members this year total about $1.5 million, with $600,000 going to Pita Aatami, a source inside Makivik told Nunatsiaq News in a taped interview earlier this month.

Aatami, first elected as Makivik president in 1998, also serves as the chair of First Air's board of directors.

Each member of Makivik's 16-member board, who approved the resolution calling for the bonuses, also received a $5,000 payment in addition to their $40,000 annual stipend.

In his written media advisory, Watt alleged that board members were paid $5,000 to vote for these bonuses, at a special meeting conducted by conference call.

"This prevented the regular board members from voting on the issue, and may not be legitimate," Watt said in his media advisory.

Watt, who ran unsuccessfully against Aatami last spring for the presidency of Makivik, also suggested the payments could be in violation of Makivik's charter, which states Makivik is a "non-profit association" set up to receive, administer, use and invest money on behalf of Inuit.

Section 10 of the charter says Makivik should use its assets "exclusively for community purposes and other activities of general benefit to the Inuit" and that these assets "shall not be distributed… for the individual benefit of any member of the corporation."

Watt said the distribution of bonuses "undermines the intellect of our people."

He said he is particularly concerned because Nunavik communities are "suffering and people are having problems paying their bills, having problems finding suitable housing and are dealing with the high cost of living."

Ordinary Nunavimmiut also expressed their dismay over the First Air and Makivik bonuses during an Oct. 6 call-in show on Nunavik's Inuttitut language Taqramiut Nipingat Inc. radio network.

The call-in show, hosted by TNI's veteran broadcaster Elashuk Pauyungie, started with a playback of an earlier oral statement by Lizzie Kulula and Noah Tayara, Makivik board members for Quaqtaq and Salluit, who tried to explain the board's decision.

The two defended the bonuses as being a common practice among southern boards.

They also said an explanatory letter is being sent out to the region's landholding corporations.

During the two-hour show, only four callers out of a total of 22 expressed support for the bonuses.

Many callers voiced frustration about the lack of consultation about the bonus handouts. They said beneficiaries should have been informed about a decision regarding such a large amount of money, just as they were during last month's referendum on how to distribute a $2 million payout from the offshore agreement.

A female post-secondary student broke into tears as she spoke, telling how little help she had received from Makivik.

Some callers suggested the $1.5 million in bonuses could have been better spent on facilities to fight drug and alcohol abuse, housing or reducing the high cost of travel or food.

Others wanted to know more about the repayment of a $13 million loan from the Kuujjuamiut Society to Makivik, borrowed to help finance First Air.

One caller used an English word "greedy" to describe those who took the bonuses, a statement contested by Aatami, who went on the air near the end of the call-in show.

Aatami asked people not come to conclusions after having heard only half of the story.

Aatami said Makivik executives plan to provide beneficiaries with a full explanation during their field trip to Nunavik communities, which starts next week.