The NPC: What’s all the fuss about?

Based on various documents leaked to Nunatsiaq News over the past two weeks by anonymous sources, here is a rough chronology of events leading up to the crisis that has paralyzed the Nunavut Planning Commission’s board.

April, 2001: The NPC’s auditor, John Laratta of MacKay and Partners, in a letter to finance officer Carol Sarazin on its 2000-01 audit, says “We believe that some areas of the company’s accounting system could be improved to enhance internal control…” The board does not see this letter.
April 25, 2003: In his 2002-03 audit letter to Luke Coady, the NPC’s executive director, Laratta says, “The Board was not directly involved in the setting of pay ranges during the year and only approved the rates in February 2003. Under the Human Resources policy the Board should determine the salary ranges.”
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Here’s the section of a letter from the NPC’s auditor, dated April 25, 2003, that says the NPC board was not directly involved in setting pay hikes, and that a board member should be appointed to supervise the executive director. The board never saw this letter.

April 25, 2003: In the same letter, Laratta recommends that “One of the Board should be appointed to be the supervisor of the Executive Director, who is responsible for the annual performance appraisal and the handling of leave and attendance.” The board does not see this letter.
May 6, 2004: In his 2003-04 audit letter, Laratta recommends that, “There needs to be a board policy regarding VTAs, as to when and how often, they can be paid.” He also says its “very difficult” to tell whether actual spending matches the budget, because of “partial information.” The board does not see this letter.
October and November, 2004: NPC board members request information about NPC finances, including salaries and benefits. They do not get the information.
February 25, 2005: NPC board members attend a board governance workshop in Winnipeg, given by a consulting firm, the Western International Frontier Group. According to one board member, the consultant tells them that “you have given away some of your powers to the Executive Director.”
February 25, 2005: NPC’s board passes a resolution creating an ad hoc committee to review the chairman’s job description and salary, and to review the NPC’s bylaws.
May 10, 2005 – Morning: NPC’s board is to meet with members of the NIRB and the NWB at a workshop in Yellowknife. Instead, board members call for a separate meeting at a different hotel to talk about financial and other issues that recently came to their attention. The ad hoc committee prepares to report progress on their work.

This is the May 10, 2005 letter from Bob Lyall to the Andy Scott, the minister of DIAND, in which he strikes back at board members by suspending board meetings and asking Scott for “direction.”

May 10, 2005 – Afternoon: NPC’s chair and CEO, Bob Lyall, refuses to recognize the meeting that the board has organized. Instead, the following occurs:

Lyall suspends future board meetings, alleging that board members have violated certain procedural rules;
Lyall writes to the DIAND minister, seeking direction, and says it’s up to him to decide if the GN and NTI should be consulted;
Carol Sarazin, the finance officer, is suspended with pay but isn’t told why;
Lyall and Luke Coady, the executive director, arrange to hire Aarluk-Consilium to do an “independent accounting and management review;”
Soon after, the locks are changed and a motion-detector security system is installed at NPC’s main office, in Cambridge Bay.
May 27, 2005: Five NPC board members – Meeka Kilabuk, Pauloosie Kilabuk, William Noah, vice-chair Peter Kritaqliluk, and secretary treasurer Suzie Napayok – write to Lyall and demand an emergency board meeting to discuss a variety of problems and allegations.
June 6, 2005: NPC’s board calls on Bob Lyall to resign as chair.
June 7, 2005: Lyall and Luke Coady issue a press release that says Aarluk-Consilium will “finish” the work of the ad hoc committee, at a cost of $49,000. Lyall says he “puts the highest priority on ensuring accountability and openness in the operation of this organizations.” The press release also says that some of the allegations made by the board are “unsubstantiated.”