Manitoba ethics commissioner says politician broke conflict law inadvertently

Manitoba’s ethics commissioner says a politician broke the province’s conflict law, but it was inadvertent and he should not be penalized.

The governing NDP caucus filed a complaint in August about Greg Nesbitt, a member of the Opposition Progressive Conservatives who represents the Riding Mountain constituency.

The NDP’s caucus chair said Nesbitt is a shareholder in a company tied to a hotel and conference centre in the Town of Russell that has a contract with the provincial government.

Nesbitt’s shares in the company are listed in mandatory disclosure statements filed with the ethics commissioner, but the contract was not.

Nesbitt said he was unaware of the contract, and said he sold his shares in the hotel company in 2018 under an 11-year buyout that is not yet complete.

Ethics commissioner Jeffrey Schnoor has ruled Nesbitt has an indirect interest in the company through another company, but has no voting shares or control over its operations.

“It is obvious that Mr. Nesbitt’s contraventions occurred as a result of inadvertence,” Schnoor wrote in his report issued Tuesday.

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“He was unaware of the existence of the contract and it would be unreasonable to impose a penalty under the circumstances.”

Despite his lack of knowledge, Nesbitt did violate the province’s conflict of interest law, Schnoor wrote.

“The act does not provide an exception for a situation where a member does not have knowledge of a contract with the Government of Manitoba. I therefore must conclude that Mr. Nesbitt contravened the act by failing to disclose the contract that Russell Inns Ltd. had with the Government of Manitoba.”

The law allows politicians to ask for an exemption from the requirement to not have an interest in a corporation that benefits from a government contract. Nesbitt has asked for such an exemption and it has been approved, Schnoor’s report said.

“I have also advised Mr. Nesbitt that he should, if possible, take steps to have the Russell Inns group of companies advise him if any of them enter into contracts with the Government of Manitoba in the future,” Schnoor wrote.

The accusation against Nesbitt was the latest battle over disclosure statements that all Manitoba legislature members must file with the commissioner.

In June, Nesbitt accused NDP cabinet minister Ian Bushie of hiding the fact he had a contract with the provincial government that had recently been renewed. Bushie was the sole proprietor of a gas station and convenience store that was listed in April as having received a renewed provincial contract.

The ethics commissioner ruled in September that Bushie contravened the law but it was inadvertent and no penalty was needed. As with Tuesday’s ruling, the ethics commissioner said Bushie was not involved in day-to-day operations and was unaware of the contract.

Bushie told reporters he would sell his business to avoid any further conflicts or the perception of wrongdoing.

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