October 29, 1998

Inquiry probes shipment of bison to Don Morin's friend

Nunatsiaq News

IQALUIT — The inquiry into conflict-of-interest allegations against Premier Don Morin heard last week how government-owned bison ended up on an Alberta ranch owned by the premier's friend, Mike Mrdjenovich, in 1996.

Testimony from Joe Handley, a former deputy minister of Renewable Resources, and Danny Beaulieu, a former sub chief of the Deninu Ku'e First Nation, show that businessman Mike Mrdjenovich received 70 wood bison for his ranch in Alberta in exchange for building the Edjericon Bison Ranch in Fort Resolution, a community in Premier Don Morin's riding.

Under cross examination by counsel for Premier Morin, Beaulieu testified that Morin was not involved, either directly or indirectly, in negotiations with Mrdjenovich or the Department of Renewable Resources concerning the bison.

Conflict of Interest Commissioner Anne Crawford had her own questions regarding the premier's role, if any, in the bison deal.

"Now this guy is your MLA, okay, and this is a big project for the Band... " Commissioner Crawford said, addressing Beaulieu.

"MLAs have responsibilities to their community. They're allowed to do things for and with their community. Are you telling me he was such a terrible MLA that he had nothing to do with the project?"

To which Beaulieu replied: "I said we kept Donny informed. I'm sure if we needed him to give somebody a little nudge we would ask him, but we didn't need him to do that."

The animals destined for Mrdjenovich's southern ranch were shipped in early 1996, and required altering a sale agreement previously signed between the GNWT's Department of Renewable Resources and the Deninu Ku'e, in which it was stipulated the animals would remain in the North for a minimum period of five years.

Questions about the deal between the Deninu Ku'e and Mrdjenovich focused at one point on inconsistencies in Beaulieu's recollection of the events leading to the establishment of a new ranch near Fort Resolution.

Beaulieu first testified that Mrdjenovich had begun preparations for the new bison ranch in early January, 1996

But Commission counsel presented a document showing work on the Fort Resolution bison ranch was already underway in November, 1995 — before the Department of Renewable Resources had given final approval to the deal.

The hearings also heard testimony from Beverly Chamberlain, contracts manager with the Department of Public Works and Services.

Chamberlain also said that to the best of her knowledge, no outside influence came to bear on the work of a committee set up in 1996 to evaluate proposals to study the privatization the GNWT's petroleum products division.

The committee eventually recommended awarding the contract to Roland Bailey because he had provided "the best overall proposal, best project team, and provided the best value to the GNWT," Chamberlin testified last Friday at the conflict of interest inquiry in Yellowknife.

One of the objectives of the conflict of interest hearings is to determine what role, if any, Premier Don Morin had in the decision of the GNWT to select Bailey for the preparation of the report, and whether his conduct in respect to this award contravened the Act .