Indian company gets $1.7 million contract

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Kainai Industries, a Blood-reserve based construction company, is about to sign a $1.7 million contract with Olympic Committee Olympique '88 (OCO) for housing for the Calgary Olympic Winter Games.

The contract comes four months after Windspeaker broke the news that the Blood Band controlled company had its back against the wall after OCO had awarded the media housing contract to Atco, a Calgary-based construction company which manufactures similar housing units.

The Kainai contract has been approved by the 27 person OCO board of directors and only the logistics of where the units will be built are to be worked out says OCO General Manager of Accommodations, Jean Filion.

In an interview in his Calgary office March 25, Filion said that several locations are being considered for the Kainai units, including Kananaski country and Canmore, a small town which lies just outside Banff National Park.

"This is a positive step forward," said Filion. "But we are still working on the details. WE need to get final layout of the units approved and then the final contract with Kainai will be signed."

The controversy arose in November last year when Windspeaker learned that the construction company, one of the most successful reserve-based companies in the country, could be forced out of business when the Atco units are put onto the market shortly after the close of the Olympics in February next year.

AT the time, Robert Laboucane, a former Department of Indian Affairs (DIA) Economic Development Coordinator, accused DIA of deliberately trying to break the successful reserve-based company.

Calgary district manager, Bob Dickson vehemently denied Laboucane's accusations, saying the former coordinator was "over reacting."

"The problem was the Kainai Industries did not even have the opportunity to bid on the construction contract for the Olympics" said Dickson in a January interview.

However, also at this time DIA had been holder workshops and meetings with chiefs in Alberta in an effort to sell the units to the reserves.

DIA coordinator Jerry Tighe admitted in an interview at the time that none of the Atco units had been sold. Tighe pointed out that the federal government is committed to assist in the Olympic Games and that they are further committed to the purchase of the Atco units.

Tighe also made a commitment at this time that any "benefits or any offers we give to Atco is also open to Kainai."

Shortly after the workshops, Lubicon Lake Chief Bernard Ominiyak entered the fray by writing an open letter to Regional Director Dennis Wallace saying he was "shocked" to find the department was in "the business of selling used Atco housing."

Ominiyak added that he hopes "Indian people buy such housing they might need from Kainai Industries, and reject the used Atco units for what they are, a modern day version of blankets infested with the smallpox virus."

The original contract for media housing went to Atco, a Calgary-based company. The Atco contract was for $18.3 million as opposed to the Kainai contract for $1.7 million. The Atco price tag, however, has an offset of $13.3 million in rent expected to be received from journalists using the facilities during the games.

The other controversy over the Atco contract is known as "Lougheed connection". According to a Calgary Herald story, before Peter Lougheed stepped down as premier, he had interceded with Calgary's mayor, Ralph Klein over the contract. Lougheed now sits as an Atco director and is also honorary chairman of OCO.