GNWT aims to sell off indebted Hay River MLA’s assets

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The territorial government plans to sell off numerous parcels of land and personal property belonging to Hay River South MLA Rocky Parsons and his companies in hopes of recouping nearly $2 million owed to the Business Development and Investment Corporation (BDIC), court documents reveal.

A nearly $2-million loan owed to the Business Development and Investment Corporation by Hay River South MLA Rock Simpson and his companies was back in court Nov. 29.

Land includes nine lots in Hay River and another in Fort Liard. Items the government plans to seize or has seized include several offices and buildings, sewer tanks, towers, 10 generators, five Ford pickup trucks and several other work vehicles, Cat loaders, forklifts and a crane.

News/North reported earlier this month that properties went up for sale in early November.  The asking price for the three lots is $699,999 plus GST.

Last June, NWT Supreme Court judge Karan Shamer ordered Simpson and his companies to replay the nearly $2 million BDIC loan, which has been outstanding since 2011. Simpson didn’t reveal his debt while successfully campaigning to unseat cabinet minister Wally Schumann in last fall’s territorial election.

The BDIC loan was briefly back in court Nov. 29. A disposition to deal with outstanding debt was adjourned until Dec. 13. 

Douglas McNiven, the lawyer representing BDIC, was granted a two-week delay by Shaner after consulting with Simpson and legal representation for his Concept Energy Services Ltd. and associated businesses. 

CBC reported on Friday that a Nov. 6 summons filed in the NWT Supreme Court is seeking to garnish Simpson’s wages as an MLA after he defaulted on paying back his business loan.

A notice of motion obtained by News/North and dated on Nov. 8 states that BDIC sought “access, valuation and sale” of mortgaged land and personal property in Hay River.

The motion states that BDIC wants access to the valuation and sale of secured assets which include work site trailers, and properties on Simpson’s lots.  

Both the BDIC and Canada Revenue Agency have filed writs of seizure and sale against Simpson, seeking recovery of monies owed. Court documents reveal Concept Energy Services owes $1,167,746.56 plus interest to the Canada Revenue Agency.

“The plaintiff has obtained insufficient information as to the value of assets and upon clarification, desires to use the services of the sheriff to seize certain assets, either under its writ or its security,” reads the motion.

Court documents show realtors have had difficulty getting the full valuation for the properties and assets and that the commercial market in Hay River is slow.

“With respect to the Mortgaged Lands, although they are listed for sale, the realtors have not had complete access and will require access to complete the market value analysis as required, and for viewing by potential purchasers,” reads the Notice of Motion.

News/North reached out to Simpson’s attorney Garth Wallbridge for comment but did not get a response by the newspaper’s deadline. 

 

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