Yukon cabinet minister stays mum on controversial sole-source contract

Yukon Economic Development MinisterStacey Hassardwon't comment on why heignored a recommendation from a government watchdog and allowed his department to sign a sole-source contract that far exceeded the government's own limit.

• Yukon gov't minister ignored watchdog to hand out $1.3M contract

The $1.3 million contract was given to Total North Communications in April to install infrastructure that will provide fasterinternet speeds to government buildings in Teslin and Carmacks.

The government's limit for sole-source contracts is $75,000.

An evaluation done by the government's Procurement Support Centre recommended the contract be put out toopen competition.

CBC News learned this week, via email, that Hassard will not comment until a celebration is held this fall to mark completion of the project.

Documents obtained by CBC through access to information suggest that the improved internet speeds will only be provided to the school in Carmacks and the health centre in Teslin.

According to the documents, Northwestel is charging its own one-time installation fee of $362,100 for Tantalus School in Carmacks and $70,000 for the Teslin Health Centre.

Northwestel will also bill the territorial government monthly, charging $20,000 a piece for the school and the health centre.

The company refused to comment on whether this project will eventually lead to improved internet service to homes and businesses in those communities.

Internet advocate says public money necessary

Rick Steele isthe executive director of Tech Yukon, an association of technology driven companies.

Steele declined to comment on the specific contract, saying hehasn't spoken to the association's members about it buthe did say the association favours contracts going to local companies.

Public funding for internet service is necessary in Yukon, Steele said, because the market is too small to cover the costs.

"The rural communities in the Yukon are falling behind in terms of internet access, they've got older technologies and more limited bandwidth," Steele said.

"So it behooves the government and everybody in general really, to see from a social justice perspective, to pay attention to the needs in the rural communities."

At least one member of the association, Rob Hopkins,said he's concerned about contracts that are sole-sourced, rather than put out to fair competition.

"The message this gives to Yukoners and the rest of the world is that the Yukon is closed for business," Hopkins said.

"There is no transparency in the way that work is awarded in the Yukon," he said. "This makes us a very bad place to invest."