Kugluktuk on verge of collapse

Kugluktuk’s senior administrative officer, mayor, and only financial officer have quit their jobs, paralyzing the community’s cash-strapped hamlet government.

“Our basic problem here is that we have very limited to nil capacity in financial administration, and that spills over into every hamlet department that we have,” said hamlet employee Alex Buchan, who described himself as the “nominal acting SAO.”

Buchan, who usually works as Kugluktuk’s employment officer, said that as of this week, the municipality cannot issue invoices, purchase orders or cheques. He said the hamlet was only able to issue its employee payroll last Friday because a GN employee came in to help.

“The morale of the staff is very low. It’s actually to the credit of our staff that we’re managing to get some basic things done,” Buchan said.

Cal Shaw, who served as the hamlet’s SAO until his resignation last week, suggested in an interview with Nunatsiaq News this week that his departure may not have been voluntary.

“I resigned under duress. At this point in time that’s all I want to say. I will confirm I resigned. I probably will seek legal counsel before I comment any further,” Shaw said.

At the same time, Shaw’s spouse, the hamlet’s only financial officer, also quit her job, leaving the municipality with no financial workers. Another position, that of chief financial officer, has been sitting vacant for several months.

Kugluktuk’s mayor, Stanley Anablak, resigned from his job at around the same time. His resignation, however, is for personal reasons related to serious illnesses affecting two family members, and is not connected to Kugluktuk’s current problems. Hamlet councillor Peter Taptuna is now Kugluktuk’s acting mayor.

Buchan said he believes the GN is now looking at the idea of replacing the hamlet council with an appointed municipal administrator.

“I think they’re probably contemplating that, and I think that might be a fairly good idea at this point,” Buchan said.

Shawn Maley, the assistant deputy minister responsible for community support at the Department of Community Government and Public Services, said the GN will make no final decision on Kugluktuk’s status until later this month.

That’s because they’re waiting for the final version of a municipal evaluation report done by a Community Government team who inspected the hamlet government about six weeks ago.

“At that point in time, that is when we would have to look at making any serious recommendations, such as whether or not there will be an administration regime,” Maley said.

The GN’s options include firing Kugluktuk’s elected hamlet council and replacing it with an appointed municipal administrator who would manage the hamlet until it got back on its feet.

But Maley suggested a better option might be to appoint a “municipal supervisor,” a GN employee who would work with the hamlet council under a negotiated agreement.

Maley said that approach worked well in Hall Beach, whose hamlet government got into financial trouble recently.

“It’s not as draconian as having to fire a council… as financial thresholds are met, the hamlet council can slowly regain the financial authority they have every right to have,” Maley said.

Maley said the department has identified three qualified candidates for the chief financial officer position in Kugluktuk, and will soon make an offer of employment to one of them.

They’ll also advertise for a new SAO as soon as possible, and will send a contractor into Kugluktuk to help get the hamlet’s financial records up to date.

“It’s an unfortunate situation, but in my opinion it’s all about training and development, and my concern is that we have to give them the tools, the training, the support, the money so that over time those kinds of situations can be reduced,” Maley said.

Meanwhile, Buchan says the lack of financial expertise in the hamlet office right now means many day-to-day tasks cannot be carried out.

“Suppose they need a new printer cartridge for our alcohol and drug centre? Who vets that and who pays for it? That whole process is pretty well dead in the water for now,” Buchan said.

When asked if the hamlet of Kugluktuk generally gets the support it needs from the Government of Nunavut, Buchan said “no.”

He said that’s because the hamlet administers about 30 contracts on behalf of the government, to run things like income support, alcohol and drug counselling, employment programs, and maintenance of government buildings.

But the GN doesn’t pay the hamlet enough money to actually run some of those programs, forcing the hamlet to dip into core funds to make up the difference, Buchan said.

“Probably, the whole government of Nunavut ought to take a look at what position they’re putting the hamlets in,” Buchan said.

The hamlet has also been labouring under a deficit reduction plan imposed to deal with a $1.2 million deficit created by a bungled artificial ice project for the local arena last year.