The NWT Business Development and Investment Corporation has sold off most of the assets of Hay River MLA Rocky Simpson.
Simpson put up the assets as security for a $2 million loan he received in 2011 for his business, Concept Energy Services.
Simpson was elected to the territorial government in October 2019. Shortly afterwards, Cabin Radio reported that he owed a total of $4 million to a variety of institutions, including $2 million to the BDIC, a Crown corporation that aims to fund new businesses. Simpson has said previously that the company suffered during the oil slowdown in Alberta.
In court Friday, Douglas McNiven, the lawyer for BDIC, said the assets were sold for a total of $937,699.
Of that, $773,798 is going to the Canada Revenue Agency.
That’s because, according to the CRA, Simpson deducted income tax from his employees’ paycheques, but did not turn it over to the agency.
That leaves just $163,901 left to go toward Simpson’s BDIC debt of about $1.8 million, which means he still owes about $1.6 million.
Simpson’s MLA salary is also being garnisheed to pay down the debt. Every two weeks, $1,022 is being deducted from his gross pay of $4,891. So far, $19,362 has been collected in this way.
According to documents in the case, an additional $208 dollars is being deducted from each paycheque for “territorial debt.”
That leaves Simpson with only a net $1,706, after tax, every two weeks.
Concept Energy Services was involved in renting out industrial equipment, manufacturing modular homes and performing other services. The $937,000 was recouped from sales of machinery, vehicles, property and equipment owned by the company.
Buyers have yet to be found for an additional five properties in Hay River and one in Fort Liard, N.W.T., that were posted as security.
Garth Wallbridge, the lawyer representing Simpson, told the CBC his client has been very cooperative with BDIC as it tries to recover the money.
