Nunavut Tunngavik Clarifies Policies and Suspension

(September 1, 2010 – Iqaluit, Nunavut)

1. The Nunavut Tunngavik Inc. policies have been reviewed and reaffirmed since 2008, which includes and not limited to, the NTI Credit Card Policy, NTI Expenditure Policy, NTI Travel Policy and the NTI Executive Compensation Policy (the “Relevant Policies”). These were reviewed and approved by the NTI Executive in early 2009 and reaffirmed with the NTI President present in the NTI Executive meeting in Resolute Bay in September, 2009. When the information on the President’s credit card use was provided to the NTI Board in November, 2009, the Board deferred the issue to the February, 2010, meeting in Cambridge Bay, during which the Board reaffirmed the policies again with the NTI President present at the meeting.

2. It is the NTI Corporate Cardholders responsibility to provide all receipts and to complete the reconciliations. Any missing information must be obtained by the cardholder. Staff may assist the cardholder in conducting the reconciliations, but will not be able to provide missing receipts or explanations on business purposes for a charge when the cardholder fails to do so him or herself. The policy indicates that the cardholder has 10 days to reconcile upon receiving the corporate card Visa statements, which are received on a monthly basis. The President has been provided numerous extensions to complete the reconciliations, but failed to do so.

The policy clearly indicates that the corporate card is not to be used for personal expenses. According to the policy, if a charge is rejected as corporate expense (for whatever reasons (e.g., incomplete receipts or explanations)), the cardholder will be required to provide full reimbursement to NTI within the 10-day reconciliation period. The cardholder will be able to be reimbursed subsequently if the cardholder proves that the charge is indeed business related. The policy does not allow unlimited time or opportunities for the cardholder to reconcile his or her account.

3. NTI operates on approved policies and procedures and there are no unwritten policies or so-called “gentleman agreements” outside the policies. If it is believed that certain benefits or agreements exist outside the policies, these should have been raised during the recent review of the Relevant Policies.

4. Reminders of the outstanding items for the President’s Corporate Card were started in January, 2009. Our staff were vigilant and flagged issues as soon as they arose, starting in January, 2009, and continued to raise concerns with the President regularly afterward.

5. Budget for entertainment for the President is $20,000.00 per year. This is reviewed on an annual basis and provided to the NTI President and constitutes a cap on the President’s entertainment expenses.

6. The NTI Board resolution is to suspend the NTI President until October 30, 2010. There are no conditions to change this date in the NTI Board resolution unless the Board reconvenes and makes a new decision.