While Premier Dennis Fentie hinted Monday that more than $1.5 million in delinquent government loans could be written off, Department of Finance official Bill Curtis says not before getting an assessment from the collection agency.

"These debts are still on the books and based on Dana Naye (Ventures') recommendations; we'll consider that,” Curtis told the Star Tuesday.

In 2005, the Yukon government (YTG) entered into an agreement with Dana Naye Ventures to collect loans in poor standing.

For every dollar the aboriginal development company was able to recover, the Department of Economic Development would kick 85 cents back into the Dana Naye Ventures' capital loans fund.

To date, the arrangement has been a relative success. Dana Naye has recouped $1.354 million in bad debts for the government, in turn garnering more than $1 million for its capital fund.

However, more than $1.6 million remains uncollected, and of that amount, two companies account for $1.1 million in outstanding loans.

During 2009-10 budget debate in the legislature Monday, Fentie said taking these bad loans off government books is possible, but could not offer a timeline.

"There is a remaining delinquency of $1.661 million ... there is probably going to be a write-off at some point,” said Fentie.

In 1991, 1992 and 1997, the YTG provided loans totalling $605,000 to Stewart Valley Enterprises to build the Bedrock Hotel in Mayo.

While the company made some payments in 1995, then not again until in 2007, it reneged in 2008, so its outstanding $601,000 balance was handed over to Dana Naye for collection.

Bill Hakonson's Top of the World Golf Course gambit in Dawson City was the next hole the YTG found to pour money into. Through 1992 and 1993, Hakonson borrowed $296,800.

It's been more than 15 years since the last instalment of the loan was delivered and the government has not seen a cent repaid. With interest, Hakonson's debt has grown to $418,000.

Elaine Chambers, general manager for Dana Naye Ventures, did not respond to interview requests for this story.

However, Curtis told the Star the company "is going to look at Bedrock's books to see why they're unable to make payments.”

As for Hakonson and his golf course, Curtis is holding out little hope.

"We don't seem to be getting anywhere with that one,” he said, adding that a decision would be made by year's end.

No bad debts were scratched from YTG books in March. Of 1,500 such loans offered through the former Department of Economic Development, 43 are in arrears.

Curtis said suing to recoup outstanding loans remains an option.