Outgoing Sask. Party MLA who violated conflict of interest law denies wrongdoing

The outgoing Saskatchewan Party MLA who violated the province's conflict of interest law says he did nothing wrong by letting clients from the Ministry of Social Services stay at his motels.

Gary Grewal said in an emailed statement Wednesday that he acted within the bounds of conflict of interest rules for MLAs while profiting from arrangements that housed social services clients at his motels.

"I continue to firmly maintain my position that a social worker arranging a room for a vulnerable citizen at a motel does not constitute a 'government contract' and believe the Commissioner's ruling completely misinterprets the nature of these transactions," Grewal said in the statement.

In a written decision released Tuesday, conflict of interest commissioner Maurice Herauf found Grewal breached the laws because accepting the clients meant Grewal entered into contracts with the provincial government.

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Grewal was elected MLA for Regina Northeast in 2020, but is not seeking re-election.

He declined a CBC News interview request Wednesday.

Grewal owns the Sunrise Motel and has a financial stake in the Thriftlodge Motel through a loan on which he collects interest. 

The Member's Conflict of Interest Act says an MLA is considered to have had a conflict if they make or participate in making a decision while knowing that there is an opportunity to further their private interests.

Herauf wrote that Grewal did disclose interest in both businesses when elected and has not been involved in the daily operation of the Sunrise Motel since 2007.

Conflict commissioner finds former Sask. Party MLA broke rules as motel owner

1 month ago

Duration 2:10

Saskatchewan's conflict of interest commissioner has ruled that outgoing Saskatchewan Party MLA Gary Grewal breached rules by owning motels that profited from government contracts.

Grewal said the transactions with Social Services were not government contracts, but rather "vouchers issued to individuals" seeking temporary shelter.

On Dec. 15, 2023, the commissioner gave Grewal a 90-day deadline to comply with the conflict of interest laws and the Sunrise Motel stopped accepting clients on March 15. But Grewal said he chose to let a number of guests with existing bookings stay beyond the deadline.

"If I am to be criticized for not wanting to evict [the] existing social service guests with no other place to go … I have no qualms about that decision," Grewal said.

Grewal also contends that while he collects interest payments from a loan to the owner of the Thriftlodge Motel, he has "no authority or influence over its management, pricing, or policies."

Before Grewal was elected, his motels earned less than $2,000 from Social Services clients, but while he was an MLA those same motels made more than $750,000, according to Herauf's ruling.

Herauf did not recommend a penalty for Grewal, leaving it to the Legislative Assembly.

In February, Minister of Social Services Gene Makowsky said the government would be changing its policy to require hotels to submit to a request for proposals (RFP) process and then enter into a contract with the government to accommodate clients. Makowsky said it would be a one-year pilot.

2nd MLA being investigated

Herauf is also investigating conflict of interest complaints made by the Saskatchewan NDP against Saskatchewan Party North Battleford incumbent Jeremy Cockrill.

MLA disclosure statements from 2022 show Cockrill held a part-time sales position at Fortress Windows and Doors and an advisor's position at the same company in 2021. The company's name or address doesn't show up in Cockrill's 2023 or 2024 statements. 

Fortress Windows and Doors, according to Saskatchewan Housing Corporations Payee Disclosure Report, received $179,137.46 from the Battlefords Housing Authority in 2021-22.