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Illitiit Society asks for mercy from debtors

Charity’s founders shoulder big debt from collapsed shelter

JOHN THOMPSON

Bill Riddell, chair of the Illitiit Society, told Iqaluit city councillors last week that he believes they share responsibility for his organization’s troubled financial state. He wants the city to help Illitiit dig out of debt by providing money for unpaid wages, taxes and utility expenses. (PHOTO BY JOHN THOMPSON)

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Illitiit once ran the Oqota homeless shelter, as well as a “youth cottage” for troubled teenagers.

Today, Illitiit provides no services and is no longer registered as a society. It does, however, still owe large sums of money to former employees, Revenue Canada, the City of Iqaluit and utility companies.

Last week Bill Riddell, Illitiit’s chair, told city councillors they should shoulder some responsibility for Illitiit’s financial mess.

He asserts that he was misled by council more than a year ago, when councillors voted to provide Illitiit with more than $224,000 to run the homeless shelter and youth cottage last spring.

Council rescinded that decision one month later, after news surfaced that Illitiit owed large sums of money to Revenue Canada for paycheque remittances.

In the meantime, the Salvation Army was given control of the homeless shelter.

But Riddell told council their decision was “unfair” and based on a “rumour” that Revenue Canada planned to seize Illitiit’s assets.

He’s asking the city to give Illitiit money to pay its employees their salaries for the month of March 2005, and to reduce or forgive debts owed to the city for taxes and utilities on the youth shelter building.

It’s not clear how much money that demand represents.

Riddell told councillors if he doesn’t get assistance, Illitiit would sell that building – which the city gave to Illitiit to run the youth cottage – to pay off the debt.

“We can do whatever we want with the building,” he said.

During an interview, Riddell said he wasn’t sure exactly how much the society owed – but expected it’s less than the value of the building, which he estimated was worth about $300,000.

“When you run into a crisis like that, your society often implodes,” he said. “Those who are left behind, are left to pick up the pieces.”

Because the organization has no liability insurance, its members are personally responsible for its debts.

“We weren’t that well organized,” he said, when asked why the group did not have insurance to protect its members. “We were just a group of people trying to do something.”

He added that Illitiit never had enough money to run the services it took on, so purchasing liability insurance was never an option.

The organization’s crippling debts scared off others from joining its board of directors. Without enough members, and without required financial statements, it lost its status as a society.

“Anyone who comes to an [annual general meeting] of an organization that owes so much is nuts,” Riddell said.

That leaves Riddell and two other executives, Jag Narasimhakelara and Jeannie Alainga, to pay outstanding bills.

Riddell said he has been paying off some of Illitiit’s debts himself, and he hopes that the city and some utility companies will forgive the money Illitiit owes.

But he’s found it’s far more difficult to ask for charity when his organization no longer provides any service to the community. “It’s hard for people to get their heads around,” he said.

Riddell also said Revenue Canada has always been informed of Illitiit’s financial situation.

“They knew we were going into debt. We talked about it,” he said. “We always believed when we were funded, we could pay off the bills,” he said.

“It’s not as if we were squandering the money or doing other things. We provided a service.”

Illitiit’s work won’t be finished until its debts are paid and one more project is launched, Riddell said.

“We have one more task, that we absolutely have to do, and we won’t dissolve until we do it. That’s form a United Way.”

“We need some sort of way for non-profits to be funded outside of government,” he said.

Riddell said he’s in talks with the Qulliit Nunavut Status of Women Council, the Government of Nunavut and the Qikiqtani Inuit Association to purchase the youth cottage building. “They might buy us out,” he said. “They are interested.”

Council will discuss Riddell’s proposal during a meeting on April 25.

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