Grewal says conflict report ‘completely misinterprets’ motel transactions

Former Saskatchewan Party MLA Gary Grewal is firing back after a report found he breached conflict-of-interest legislation.

The report from Commissioner Maurice Herauf, released on Monday, found that Grewal broke the legislation when his Sunrise Motel and Thriftlodge Motel entered into contracts with the Ministry of Social Services in order to house the ministry’s clients.

The report said Grewal was told in December 2023 that his Regina hotels should stop taking part in the contracts, but he did not. According to the report, the province spent $732,000 on Grewal’s hotels since 2018 for social services recipients.

The issue was brought to the public’s attention when the Saskatchewan NDP accused Grewal of inflating rates at his hotels when social services clients were housed there. The government later changed its hotel policy, saying it now gets quotes from three hotels and directs clients to the cheapest option while considering their safety needs.

In a letter sent to Saskatchewan media outlets, Grewal said he doesn’t believe that social workers arranging rooms at the motel for clients constitutes a “government contract,” and said he feels the ruling “completely misinterprets the nature of these transactions, which are essentially vouchers issued to individuals in need of temporary shelter.”

Grewal said that after the commissioner shared an opinion on December 15 – following a request made by Grewal himself – he directed the Sunrise Motel to no longer accept new guests in a move that became effective on March 15, which he said “is within the permitted 90 day timeline.” It was, in fact, exactly 90 days later.

Grewal said some guests stayed beyond that date because evicting them would have essentially left them out in the cold.

“If I am to be criticized for not wanting to evict then existing social service guests with no other place to go, which I advised the Commissioner of without objection (the last guest stayed until March 25, 2024), I have no qualms about that decision,” Grewal’s letter read.

When it comes to the Thriftlodge, Grewal said he is only a creditor of that establishment, not an owner or manager, and has no influence over its policies.

“The Commissioner was specifically aware of this and at no point did he ever suggest to myself or my legal counsel that I needed to call the loan, forgive the loan, or take any other action,” Grewal said, noting that he would have explored options had any action been recommended.

Herauf’s report, however, said that being a creditor to the tune of $100,000 did give Grewal “an interest” in the business and he “has therefore also participated in government contracts through the Thriftlodge Motel.”

Grewal called it “unfair” that he did not learn about Herauf’s opinion around the Thriftlodge in advance, in order to have time to rectify the situation.

“(Herauf) did not offer any opinion, verbal or otherwise, suggesting my 13-year-old loan to a community member with terms and interest payments that were wholly unchanged throughout would constitute a breach of my duties as an MLA until Monday of this week, and I think that is very unfair to me,” Grewal said in his letter.

Grewal, who was elected in 2020 to represent Regina Northeast, is not running for re-election in the current provincial campaign, which concludes on October 28.

–with files from The Canadian Press