Yukon pulls out of asset-backed commercial investments

The Yukon government won't be investing any moremoney in the troubled credit market, Premier Dennis Fentie announced Monday.

Fentie, who is also finance minister, said in a news release that he has told Finance Department officials to stay away from investing government money in the asset-backed commercial paper, regardless of that paper's credit rating or bankers' guarantees.

The release noted that Yukon governments over the last 12 years have invested in asset-backed commercial paper investments, "as have numerous government-related agencies and corporations elsewhere in Canada."

But last summer,a $36.5-million investment ended up in limbo, after the global credit market froze in mid-August. Monday's release made no mention of that government investment.

"The classic metaphor that comes to mind is that the premier is locking the barn door and the horse is long gone," Liberal Opposition Leader Arthur Mitchell told CBC News on Monday.

"Of greater concern is that he has not accepted responsibility for the bad decisions he's made. He's simply said he won't make any more of them."

Mitchell maintained that the investments violated government policies. In November, federal Auditor General Sheila Fraser agreed to Mitchell's request to conduct a special investigation. She is expected to release her findings early this year.

Finance officials with the territorial government said they expect to recoup the frozen $36.5 million sometime within the next seven years.