The housing association in Cambridge Bay, Nunavut, had a $1.4-million deficit last year, and RCMP are investigating allegations of theft there, according to a Nunavut Housing Corp. document obtained by CBC News this week.
The Cambridge Bay Housing Association had the large deficit in March 2010. The territorial housing corporation wrote in a briefing note in October that it had received no financial statements from the local association.
The new manager of the Cambridge Bay Housing Association told CBC News the financial situation is under control and is being addressed.
Meanwhile, RCMP confirm they have been looking into allegations that $14,000 was stolen from the association, but no charges have been laid to date.
Sgt. Jimmy Akavak said two people of interest were questioned about the alleged theft, but both refused to take lie detector tests.
"It's an active file, and at this point no charges have been laid to date," Akavak said on Thursday.
The briefing note, titled "Cambridge Bay Housing Association Financial Situation," was included in a set of other ministerial briefing notes from the Nunavut Housing Corp. that were obtained through Access to Information.
CBC News had asked for the briefing notes months ago but its request was denied. An appeal was then lodged with Nunavut's information and privacy commissioner, who ordered the government to release the documents.
Most of the other briefing notes talked about problems with the Nunavut Housing Trust, a federally funded program aimed at building more public housing in the territory.
The housing corporation, which managed the housing trust, admitted last year that it had incurred $60 million in cost overruns.
Some of the other briefing notes talked about issues related to buildings and equipment.
The Nunavut Housing Corp. has yet to respond to interview requests.