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

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.

Earlier this year, NDP MLA Meara Conway asked the commissioner to investigate Grewal's involvement in the Sunrise Motel and Thriftlodge Motel. The Ministry of Social Services used both motels to house clients.

Grewal had represented Regina Northeast since 2020, but announced in February he was not seeking re-election.

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.

Conflict of interest commissioner Maurice Herauf released his decision on Monday.

Herauf found that Grewal contravened subsection 15(5) of the Members' Conflict of Interest Act. Section 15 prohibits all MLAs from participating in "government contracts" unless doing so is specifically permitted by the Act or another statute.

Herauf said that as shareholder, director and officer of the Sunrise Motel, Grewal breached Section 15 when the government entered into contracts with the motel. He said as the creditor of the Thriftlodge Motel, Grewal loaned money to the owner and therefore has "an interest in" the motel, which also put him in breach of the rules.

Herauf said Grewal did disclose his interest in the businesses when elected in 2020.

"Grewal was not aware of the existence of those government contracts, nor could he reasonably have been expected to be aware of their existence until December 15, 2023," Herauf said.

However, Herauf said Grewal was obligated to comply with the Act within 90 days of being made aware of participation in a government contract (Dec. 15, 2023). Grewal did not do so.

Grewal had been involved with the Sunrise Motel since 2001, but was not involved in day-to-day operations since 2007, Herauf wrote.

Herauf said Grewal did not get involved in the finances of the motel or set room rates after his election in 2020 and his spouse handled bookkeeping. Grewal earns income from the business through Grewal Hospitality Inc., which was incorporated in 2011.

Herauf said Grewal was in contravention of the Act with the Sunrise Motel from Mar. 15, 2024, to July 17, 2024, and with the Thirftlodge from Mar. 15, 2024, to July 31, 2024.

He said Grewal, "directed his spouse that the Sunrise Motel must cease accepting Social Services clients as guests March 15, 2024."

Herauf said Grewal did not want anyone evicted. The final payment from the motel to social services was on July 19, 2024.

As for the Thriftlodge Motel, Herauf said Grewal was aware it was accepting social services clients before November 2023 and continued to accept clients.

"Mr. Grewal did not divest his interest in the Motel: he did not collect on the indebtedness owing to him, or otherwise abandon the outstanding loan. Nor did Mr. Grewal make any efforts to stop the Thriftlodge Motel from accepting Social Services clients," Herauf wrote.

"Mr. Grewal has not taken any steps to stop the Thriftlodge Motel from accepting Social Services clients."

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

NDP, Sask. Party leaders react to commissioner's ruling

The Sask. NDP sent a news release in response to Hearuf's decision on Monday evening.

"Scott Moe tried to defend the Sask. Party's behaviour but the Commissioner called it what it is – illegal. This is corruption, plain and simple," said Meara Conway, NDP candidate for Regina Elphinstone Centre.

When Conway launched the complaint against Grewal, she said he breached the act by not seeking an exemption from the commissioner.

The NDP said records show Grewal's motels did almost no business with the Ministry of Social Services prior to Grewal's election. However, after he was elected, "government business increased to $731,194 in a few short years." 

The party has also accused Grewal of inflating prices at the two businesses when the government was paying for rooms.

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On Tuesday, Saskatchewan Party Leader Scott Moe was asked about the commissioner's ruling at a news conference in Prince Albert.

"We accept the findings. There are no recommendations that are made. This is an individual who is a private citizen and is not running for our party."

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.

Herauf is also investigating conflict of interest complaints launched by Conway and the NDP involving 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.