A conflict-of-interest investigation has found a former Saskatchewan Party backbencher broke the rules when his two hotels did business with the province.
The report from commissioner Maurice Herauf, released this week, says Gary Grewal breached conflict-of-interest legislation when the Sunrise Motel and Thriftlodge Motel entered contracts with the social services ministry.
The report says Grewal was told in December 2023 his companies should stop taking part in the contracts, but they did not.
“It is my opinion that Mr. Grewal has breached (Section 15) of the Act with respect to both the Sunrise Motel and the Thriftlodge Motel,” Herauf writes in the report.
He says the section prohibits businesses connected to members from participating in government contracts, including if the member is an owner, shareholder, partner, manager or has any other interest.
“Mr. Grewal has breached this prohibition.”
Grewal is not running in Monday’s provincial election.
The Opposition NDP raised the issue last year when it found the Sunrise Motel had raised rates for a social services client when the Ministry of Social Services started paying her bill.
Motel receipts provided by the NDP show the client paid $132 a night, plus a $200 damage deposit, when she initially checked in.
However, when the ministry decided to foot the bill, the receipts show the government paid $168 a night then $200 a night a few days later.
Meara Conway, an NDP candidate in Regina who brought the issue to the commissioner, said in a news release late Monday that it reeks of corruption.
“The Sask. Party is more interested in cashing in on their government positions than representing the people of Saskatchewan,” she said.
“This is why so many voters are looking for change.”
The province has spent $732,000 on Grewal’s hotels since 2018 for social services recipients.
Earlier this year, the Saskatchewan Party government changed its hotel policy. It now gets quotes from three hotels and directs clients to the cheapest one while considering their safety needs.
The Saskatchewan Party said in a statement Tuesday it accepts the commissioner’s findings.
“Mr. Grewal is now a private citizen and is not running again,” it said.
“Earlier this year, the procurement practices were changed to ensure the process for hotel usage considers fair value, availability and transparency.”
The commissioner’s report says Grewal is not involved in the Sunrise Motel’s operations and that it’s been run by managers for the last 10 to 15 years.
It says Grewal has no involvement in the hotel’s finances and he hasn’t set room rates since 2020. His spouse does the bookkeeping.
In December 2023, the report says, Grewal became aware he was in a conflict and was told to end contracts with social services.
In March, he asked his spouse to stop accepting clients. The motel received its final payment from social services in July.
“(In December 2023), Mr. Grewal was obligated to cease participating in government contracts within 90 days, with the deadline being March 15, 2024.
“Mr. Grewal did not and continued to participate in government contracts until July 17, 2024.”
As for the Thriftlodge, Grewal was also told to end contracts in Dec. 2023.
The report says Grewal argued that because he was a creditor at the Thriftlodge, the allegations against him were “grossly unfair.”
The commissioner disagreed, writing in the report that Grewal had provided a personal loan and therefore did have an interest in the hotel.
The report says Grewal did not divest from the Thriftlodge after he was given the 90-day deadline to do so.
“Mr. Grewal was obligated to cease participating in government contracts within 90 days, with that deadline being March 15, 2024.
“Mr. Grewal did not.”
Herauf’s report declines to make recommendations on penalizing Grewal, as he is no longer a legislature member.