Questions raised after MLA-owned motel in Regina hikes rates for Social Services

Saskatchewan’s opposition is raising questions about the connections between a Regina motel, Sask. Party MLA Gary Grewal and the Ministry of Social Services.

Early in November, the Saskatchewan NDP brought Evelyn Harper to the legislative building. She said she’d been kicked out of her social housing due to issues out of her control and was staying at the Sunrise Motel in east Regina.

Social Services Minister Gene Makowsky took an interest in her case, and said the ministry would help find her somewhere else to live while taking over the cost of her stay in the motel in the interim.

When she first checked in, and for her first couple of nights at the motel, Harper paid $132.09 per night, with tax. For the next four nights, which were paid for by the Ministry of Social Services, the cost went up to $168.55 per night. Then, the cost went up again, to $200 a night.

Harper has since been set up in new housing by the ministry.

Bills from the Sunrise Motel in Regina, obtained by the Sask. NDP, showing the nightly rate increasing for a woman after her bill started being paid by the Ministry of Social Services. (Lisa Schick/980 CJME)

Booking online through a third party, a room at the motel for Wednesday night was listed for $71, while the NDP said staffers were quoted between $89 and $99 per night.

“Ms. Harper did not change rooms. Ms. Harper did not receive any additional services from Sunrise staff. The facts show that the only difference is that the Ministry of Social Services got involved and offered to foot the bill with taxpayer dollars,” said Meara Conway, the NDP’s social services critic.

Sunrise Motel is owned by Grewal Hospitality Inc., which is owned by the Sask. Party’s Regina Northeast MLA Gary Grewal.

Conway said the case raises questions about motel rates, how often the ministry uses motels, how much it pays, and which hotels or motels it works with.

“At minimum, this raises real concerns around the mismanagement of public funds, the transparency of the Sask. Party government, and, again, even the ethics of its individual members,” Conway said.

“At worst, this raises questions about whether Sask. Party MLAs have used their influence within government to benefit their private businesses.”

Conway said she’s been told the ministry often puts clients at the Sunrise Motel, and a front desk clerk at the motel confirmed on Wednesday that social services clients often stay there.

Sunrise Motel is owned by Grewal Hospitality Inc., which is owned by the Sask. Party’s Regina Northeast MLA Gary Grewal. (Lisa Schick/980 CJME)

The NDP critic said the public deserves answers, and depending what the answer are Conway said she’d be willing to refer the situation to the province’s conflict of interest commissioner.

The Members’ Conflict of Interest Act prohibits any MLA from participating in a government contract, with some specific exceptions.

Penalties for contravening the act could range from requiring the MLA to comply with the act to a reprimand or even the MLA being removed from their seat.

A statement from Saskatchewan’s Executive Council said the NDP is making “serious and unfounded allegations.”

According to the government, motel room prices fluctuate, and the ministry doesn’t pay damage deposits when it puts clients up in hotels or motels so, in this case, room charges were restated and ended up being higher.

When she checked in, however, Harper paid a $200 damage deposit, which Conway said still hasn’t been returned.

Conway that if the situation around the damage deposit is the reason the cost was so much higher for the ministry, then social services ended up paying significantly more than what Harper was charged over several nights.

“It’s not a satisfactory explanation in my mind, and if the Ministry of Social Services is agreeing to that rate I would have concerns about the use of public funds in that regard,” said Conway.

The government’s statement noted that Grewal doesn’t work at or manage the motel himself. He was not available to speak to the media on Wednesday due to a death in the family.