Details presented by NDP raise more questions about Grewal hotels

New information coming out this week showing the Ministry of Social Services’ use of two hotels a Saskatchewan Party MLA has a hand in is casting an even deeper shadow on the situation.

In November, the Saskatchewan NDP brought to light the connection between Sask. Party MLA Gary Grewal and the Sunrise Motel in Regina that had been getting thousands from the Ministry of Social Services for stays from vulnerable people with nowhere else to go. The Opposition also pointed out the hotel appeared to be gouging the ministry for its room rates.

In February, the opposition also showed Grewal was an investor in and derived income from the Thriftlodge motel in Regina, which was also getting business from Social Services and appeared to be charging vastly inflated rates to the government.

On Tuesday, the NDP brought forward information it got in committee that showed in the two fiscal years before Grewal was elected and the fiscal year in which he was elected, Social Services paid the Thriftlodge $0 for stays, and paid $14,240 in that time to the Sunrise Motel.

The amount paid to the two hotels rose by tens of thousands — and hundreds of thousands — over the next three years. Up to September of last year, the Thriftlodge had been paid $349,861 and the Sunrise Motel $368,402.

This table, provided by the Saskatchewan NDP, shows money paid to hotels Sask. Party MLA Gary Grewal had a hand in, for the past 5 1/2 years. (Submitted)

“I never, in my wildest dreams, imagined that the numbers we would get on the Thriftlodge would be this damning,” said the NDP’s Meara Conway.

The Saskatchewan NDP’s Meara Conway says Social Services Minister Gene Makowsky and Premier Scott Moe haven’t been accountable for the situation with Gary Grewal’s hotels or even acknowledged how unacceptable the situation is. (Lisa Schick/980 CJME)

Conway said she’s frustrated that the government hasn’t answered her questions about this, Minister Gene Makowsky hasn’t explained how this happened, and the government hasn’t acknowledged how unacceptable this situation is to have an MLA who appears to be profiting off a homelessness crisis.

“Mr. Grewal receives a salary from the Legislative Assembly and, in addition to that, he’s connected to two hotels that have gotten three quarters of a million dollars since he was elected,” she said.

“Saskatchewan people don’t want their money going to MLAs’ businesses. They want those dollars being invested in health care, in sustainable housing (and) in classrooms. This is unacceptable.”

Makowsky didn’t come out to answer media questions about the new information on Tuesday. Instead, Jeff Redekopp, executive director of income assistance with the Ministry of Social Services, faced reporters.

He said there was a previous process in place when it was determined a hotel was needed.

“When selecting a hotel, it was a matter of which hotels were available which would accept a client from our ministry, and that was the process,” said Redekopp.

He couldn’t say exactly why use of those two hotels jumped after 2020, saying he couldn’t say what hotels might have been available at that time. He did say it’s frontline staff who look for what hotels are available.

“The ministry has, generally, no knowledge of who owns a hotel and has never been instructed by government to use a certain hotel. It’s about the needs of the client,” explained Redekopp.

There is a new process in place now, which involved getting quotes from multiple hotels ahead of time.

The auditor announced at the end of November that her office is going to investigate hotel expenses by Social Services.