Political interference by Premier Dennis Fentie's government is behind the sudden departures of four veteran board members of Yukon Energy and the Yukon Development Corporations, says the resigning chair of the two boards.

Willard Phelps said he and the three board members agonized over their decision, but ultimately determined they could not carry on under the existing relationship between the boards and Fentie's government.

The fundamental problem, he said, boils down to opposing views between board members and the government regarding the appropriate role of the boards and the appropriate role of government in governing the two corporations.

Attempting to sort out the governance of the two corporations has been an issue for several years, and remains unresolved, Phelps pointed out in an interview.

"Instead of getting better, in our view, things are deteriorating," said the former Conservative government leader and longtime supporter of the Yukon Party.

"This is about the relationship between us and the government, and what kind of control, and what kind of working relationship we have. And it has not been good."

Phelps said he has served Yukoners on the board with dedication and professionalism, and would have continued. But he will not serve as somebody's puppet, he said.

Along with Phelps, veteran board members Paul Hunter, Greg Hakonson and Martin Allen also resigned. All four were nominated by the Yukon Party government.

The board's vice-chair, Pat Irvin, will now move in as interim chair. The three other remaining board members - Paul Birckel, Barb Joe and Luke Johnson - were nominated by the Council of Yukon First Nations.

The Yukon Development Corp. is the parent to Yukon Energy, and the board of directors is the same for both. Under legislation, the boards can function with as few as three members.

All members of the boards, Phelps insisted, have done an admirable and professional job understanding and managing the very affairs of Yukon Energy and its role as a public utility.

He's not sure what impact the resignations will have on Yukon Energy and ultimately Yukon ratepayers.

"I feel badly the Yukon has lost the services of three directors who were superb at their job," he said. "You do not learn this stuff overnight."

Fentie was not making himself available this morning to answer the accusations of political interference, or questions about how the mass resignations might affect his political future.

Cabinet spokeswoman Roxanne Vallevand said he would not be available today, and possibly not until the end of the week.

In a brief written statement issued Monday afternoon, the premier thanks the four board members for their service.

Fentie, a former NDP MLA, was courted away from the left by the Yukon Party back in the spring of 2002 to seek the party leadership, and eventually led the party to victory in the territorial election later that year.

Liberal Leader Arthur Mitchell said today while he wouldn't guess how the resignations might affect Fentie politically - whether they have signalled a crack or division among the Yukon Party faithful.

Phelps, he pointed out, is a former leader of the right-wing party. And while he would not assign political affiliation to the other three, he suggested they likely were friendlier to the right than they were to the left.

This is clearly a disagreement over control that has not developed overnight but has been brewing for quite some time, "and those four board members were not willing to put up with it anymore," he said.

Mitchell noted it's long been said that Fentie runs a command and control style of government.

The resignations, he suggested, are further evidence of that. When Marny Ryder stepped down from the Yukon Hospital Corp. in 2006, she too decried political interference from the Fentie government, he pointed out.

Mitchell said the YDC, Yukon Energy and the Yukon Hospital Corp. are supposed to be somewhat independent Crown corporations, at arm's length from government influence and control.

Yukoners, he added, should be worried that Fentie and his cabinet colleagues are clearly attempting to exert too much influence into the mix.

They should be particularly worried that the resignations come as Yukon Energy has just announced the $140-million-plus project to beef up the Mayo hydro capacity and extend the main grid from Pelly Crossing to Stewart Crossing, Mitchell said.

"There is a great deal of concern about who is steering the ship right now," said the Liberal leader. "It is clear that it is being steered over at the cabinet office, and that should be a concern to all Yukoners."

Phelps, who was acting as the spokesman for the departing board members, said he could not get into specifics because of the oath of office and the confidentiality provisions board members are bound by regarding board discussions.

If the government cares to discuss the specifics and remove the confidential restrictions, the resigning board members would respond freely, he said. The departed quartet, he added, would also be prepared to "comment on certain government and corporate energy initiatives as they are announced."

Phelps emphasized decisions by the board for Yukon Energy can literally deal with millions upon millions of dollars, and directly affect Yukoners.

Board members, he said, take those decisions very seriously, and with the utmost of responsibility. They are ready to stand by those decisions, only if those decisions are indeed made by them, he said.

"If I am going to carry the can for a decision that turns out bad, then it has to be my decision," he said. "I am not going to carry the can for the some politician, whoever it is."

Phelps said it is imperative the boards operate independently of the political whims or the day, and are free from political gamesmanship.

But despite continuing insistence about the need for a new structure of governance for the corporations, there's been no solution, he said.

Yukon Energy president David Morrison, whom Phelps applauds for spearheading the recent success of the corporation, has been talking about the need for a new structure of governance since before Phelps was invited by the Yukon government to serve as chair back in 2004, Phelps pointed out.

Phelps said it was the government's inability to address the outstanding issue of governance that led to his brief departure as chair in November 2006. He said he returned four months later in March 2007 only with the assurance that governance would be dealt with, he said.

Members of the boards, he said, have a very tough job, and have made great strides over the years coming to grips with the very difficult job of making decisions in a complex area involving public utility matters.

Five years ago, he said, a representative of the Auditor General of Canada told board members Yukon Energy was among their worst clients, a mess that Morrison was hired to clean up.

Today, the corporation is among the AG's "very best" clients, he said.

"That is a tribute to management, that is a tribute to the chief financial officer," he said. "It is a tribute to David (Morrison) and it is a tribute to the board."

Phelps said the board of directors was directly involved with the recent $28-million extension of the grid from Carmacks to Pelly Crossing, and the construction of the spur line into the Minto Mine.

Board members and Yukon Energy staff approached the project in a strict businesslike fashion, to avoid the disaster the Mayo-Dawson City extension was under the former Liberal government, he said. They made sure they had the best team, they did the negotiations with the first nations ....

The project, Phelps said, was a success in every way.

Asked if the government was now taking a different approach to letting the board manage the Pelly-Stewart extension, and the Mayo B project, Phelps reiterated confidentiality restrictions prevent him from discussing specifics.

Phelps suggested any issue related to the new project would only be a symptom and not the cause of the resignations.

"The cause is the relationship," he said. "It is hard to explain without being able to. I'd love to be able to tell you some of the stuff that has gone on but I can't.

"It would be wrong to single out Mayo B. You know you always have to fight for your rights as directors and try to do the right thing but at some point, you have to bow out."

Phelps said he has every confidence in the ability of the four remaining board members. And nobody knows what will happen in terms of replacing the four departing members, he added.

"Whether Mayo B will suffer from the same problems that have been emerging for some time over governance etc., etc., and our relationship from government, remains to be seen."

Yukon Energy spokeswoman Janet Patterson said Monday the corporation has work to do, and is continuing along with that work.

"It is really unfortunate it came to this because all four of those people were amazing on the board," she said. "They were really good board members. They really made a contribution and we will miss them.

"Beyond that, we can't say anything because this is really between the board and the Yukon government."