Whitehorse Daily Star

Still no attempt by Jenkins to repay government loans

Updated indicators released by the Department of Finance show that Minister Peter Jenkins has still not made any new payments against his two delinquent loans.

By Whitehorse Star on October 6, 2005

Updated indicators released by the Department of Finance show that Minister Peter Jenkins has still not made any new payments against his two delinquent loans.

The statistics show that loans and their accumulated interest now total approximately $2.1 million.

The Yukon Party MLA for Klondike holds the third-largest debt for his company, Dawson City Hotels.

His two loans remain not in good standing. To be in good standing a payment must be made within the last 90 days.

As of Oct. 1, 2005, Dawson City Hotels owed $306,338.74. Approximately $50,883 has been put against the loan so far, all but $3.80 of which is interest payments.

The company has not made a payment in eight years.

In total, there were 10 payments made on the first loan and another 13 on the second.

The last payment on the first loan was made in August 1991. The last payment for the second was made in September 1996.

At the conclusion of the quarter ending on March 31, 2005, Jenkins' loan totaled $299,033.29. However, there have been no additional payments since that time and his two loans have racked up $7,305.45 more in interest.

His company, which operates the Eldorado Hotel in Dawson City, was handed a $50,000-loan in February 1988.

The second loan was given to the company in June 1990 for $75,000.

Jenkins was unavailable to comment.

The highest debtor is Lafave's Inconnu Lodge, which owed $590,882.80 as of Oct. 1, 2005.

Lafave has also only focused on the interest, and has paid $52,086.42 so far. He has not put any money against the principal of the initial $242,500 in loans.

Northern Superior Mechanical is also high on the list of debtors, owing $319,015.37.

The company has paid $218,060.92 toward the loan, but still owes $131,322.42 in interest and $187,692.95 against the original principal.

Norline Coaches and Junction 37 Services are also on the list of delinquent loans, owing more than $100,000.

The initial $290,000-loan taken out by Norline Coaches has accumulated interest and despite $118,545.00 in payments, there is still a balance of $319,015.37 waiting to be paid off.

Junction 37 Services also owes $198,469.08 on its original loan amount of $101,249.

No money has been put against the initial principal and only $55,000 has been paid in interest.

The list includes both individual residents and businesses. The outstanding balances range from $592.94 to Lafave's over-$500,000 debt.

Bill Curtis, director of finance and administration for the department, was unavailable to comment on any changes on the loan list.

All the debtors received their loans through either the Saving Energy Action Loans or the Business Development Fund.

Dana naye Ventures was awarded custody of 42 delinquent loans, formerly held for years by the Yukon government, last March. It now has the responsibility of collecting on them.

The government gave Dana naye a $350,000-advance to start the collection, with $50,000 going toward collecting the debts and the rest being used to provide loans to small businesses.

The first $350,000 collected by Dana naye was to be returned to the government.

The rest of the $2.1 million in repayable moneys will be divided between the company and the government.

Eighty-five per cent will be used by Dana naye to hand out more loans to small businesses and 15 per cent will be returned to the government.

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