MLA presses government on status of elder-care home work
Minister confirms builder of Rankin Inlet facility is in receivership but has pledged to finish work
Iqaluit-Tasiluk MLA George Hickes pressed the government for answers Monday, after he learned the contractor hired to build an elder-care facility in Rankin Inlet is in receivership. (File photo by Jeff Pelletier)
Iqaluit-Tasiluk MLA George Hickes pressed the government for answers Monday after learning the contractor hired to build an elder-care facility in Rankin Inlet is in receivership.
“I would like to ask one more time, can the minister update this house on what work has been done in the last four months on that project?” Hickes asked David Joanasie, the minister for Community and Government Services.
Noting that “it is no fault of the government when a business has financial difficulties,” Hickes said, “I’m assuming that that’s contributing to the delays in the project, and I’m not sure why the minister isn’t just informing us of why and how this came about.”
He asked for “an update on some realistic expectations” about when the facility will open.
Receivership generally refers to the legal process after a company defaults on its debts. A bank or other creditors can request the appointment of a third-party receiver, who has various powers including liquidating the company’s assets to recoup money owed.
According to Government of Nunavut data, the primary contractor for the Rankin Inlet project is Mikim Construction Ltd.
Quebec Superior Court of Justice documents dated Feb. 14 show Mikim Construction Ltd. being in receivership.
“[MLA Hickes] is correct in that this project has gone into receivership,” Joanasie said Monday. “My department recently became aware of this.”
He said the receiver has made the commitment that the “general contractor will maintain delivery of the project this spring, as planned.”
“I can assure you that we are trying to make sure that this facility is completed, done and ready for the Department of Health,” Joanasie said.
In the legislative assembly last week, Joanasie revealed that delayed payments by the primary contractor to subcontractors had led to work stoppages and other issues that delayed completion by a year.
The same day, Health Minister John Main said the facility is expected to open in April and welcome its first residents this summer.
Questions:
Did the GN fail to pay Mikim the expected amounts at the expected times?
If so, why?
If the GN failed to pay the expected amounts at the expected times, did that contribute to Mikim going into receivership?
Construction costs rise, as surely as the sun rises. Delays increase costs.
The NNI policy continuing to work for everyone. Create a shell company, bid more for contracts, take shortcuts, underpay local staff, fall behind on project, ensure the MLA’s speak about the issue, dissolve, rinse, wash, repeat.
Funny the Article does not mention that it appears this Mikim Construction Ltd. was only founded in 2020 to bid on the Long Term Care Project. Why was it not bid on by Almiq Contracting Ltd. which has been around longer? Maybe time to do some investigative journalism…..
What makes you think it didn’t bid?
Iqaluit probably got the money that was supposed to pay for the elders home contract.
The elders home will be in Rankin?. The home will be running by the Conservative Government?. You will not see me there because the staff would have more rights than the patients or clients.They will not care too much about their client’s. I do have a very bad test on that situation. And, the Government will not tell you too much whats going on with the problem you might have. The money is controlling the workers.