No penalty for Stefanson for breaking conflict of interest rules By: Carol Sanders Posted: 7:23 PM CDT Monday, Mar. 13, 2023

Manitoba Premier Heather Stefanson violated the conflict of interest act by failing to promptly disclose the sale of some personal assets but will not be punished, a Court of King’s Bench judge has ruled.

In a written decision released March 10, Justice Anne Turner said because the violation was “inadvertent” and “due to inattention,” she could not enforce any discipline.

“While inattention to the details of legislation is not something MLAs should strive for… the act clearly mandates that I cannot impose a penalty where a breach of the act was inadvertent,” the judge said in her 14-page decision.

In January 2022, the Free Press reported the Tory premier had admitted to failing to disclose the sale of three Winnipeg properties by McDonald Grain Co. Ltd. in 2016 and 2019, for a total of $31 million. Stefanson was listed as a company director and shareholder.

Stefanson, a MLA since 2000, was justice minister from May 3, 2016, to Aug. 1, 2018, and families minister from Aug. 1, 2018, to Jan. 5, 2021. She became PC party leader and premier Oct. 20, 2021.

The conflict of interest act says MLAs must notify the clerk of the legislative assembly within 30 days if they dispose any asset.

Manitoba Liberal Leader Dougald Lamont then took the matter to court, because it’s the only way to hold a MLA with a potential conflict of interest to account under current legislation. He had asked a 90-day suspension and a $5,000 fine be imposed on the premier.

On Monday, University of Manitoba law Prof. Gerard Kennedy said the judge was bound by legislation and “had no discretion in this regard.”

A judge suspending an elected official “seems wildly inappropriate,” however, a fine might have been fitting, he added.

Even without a penalty, a judge declaring the premier violated conflict of interest legislation carries a lot of weight, the law professor said. “The declaration is not nothing. A declaration is the court publicly admonishing the premier for breaking the law, and that’s a powerful symbolism.”

The ruling may cause Stefanson some embarrassment but likely won’t impact voters when they go to the polls later this year, said University of Manitoba political studies professor emeritus Paul Thomas.

“The ruling amounts to a mild reprimand of the premier,” Thomas said.

“To the extent voters are paying attention, the ruling will confirm to many people the obvious fact that the Stefanson family is well-off. For some of those voters, it will symbolize that the wealthy are treated differently, with more deference by the courts,” he said.

“Bottom line: the issue has caused short-term embarrassment, but it will fade into the background. Votes will be cast on more tangible issues like health care and the economy.”

On Monday, Stefanson’s press secretary said the premier respects the judge’s decision but it won’t distract her from focusing on the priorities of Manitobans.

“Our government is listening, and we are taking action to help heal health care, make life more affordable, and lead to safer streets, stronger communities and opportunities ahead for all Manitobans now and well into the future,” her press secretary said.

The opposition, however, wasn’t ready to move on.

During question period Monday, NDP Leader Wab Kinew asked the premier to apologize for violating the legislation in question.

Responding for the premier — who was in attendance — deputy premier Cliff Cullen said the PC government in 2021 passed new, improved and soon-to-be-enacted conflict of interest legislation, based on best practices of other jurisdictions.

The new law follows a blistering 2018 report by conflict of interest commissioner Jeffrey Schnoor on Manitoba’s toothless rules. The legislation — including the requirement to disclose assets and liabilities and giving the commissioner the power to investigate conflict of interest complaints — comes into force after the 2023 provincial election.

“There’s no reason it couldn’t have taken effect earlier,” Lamont told reporters after question period Monday.

“Right now, it’s still possible for MLAs and their spouses to receive gifts of unlimited size and value — they just have to declare if it its over $250,” the MLA for St. Boniface said. “They don’t have to declare anything they own outside of Manitoba — you can own businesses and tax havens.”

Lamont’s lawsuit had also accused the premier of breaching conflict of interest rules by not withdrawing from committee meetings in 2018, when one of the matters under consideration was Bill 12 (Red Tape Reduction and Government Efficiency Act).

The bill included proposed changes to the Residential Tenancies Act critics argued would make it harder for renters to appeal increases imposed by their landlords.

“Right now, it’s still possible for MLAs and their spouses to receive gifts of unlimited size and value — they just have to declare if it its over $250… They don’t have to declare anything they own outside of Manitoba — you can own businesses and tax havens.”–MLA Dougald Lamont

At the time, Lamont said it would be a conflict of interest for Stefanson to vote on the matter because of her connection to rental properties held by McDonald Grain Co.

Then-premier Brian Pallister dismissed the complaint, saying when there are issues that apply broadly to thousands of Manitobans, MLAs shouldn’t be disqualified from voting.

In her decision Friday, Turner agreed.

Such a ruling had the potential to “create an absurd result,” the judge said, whereby, for example, no MLA who paid taxes n Manitoba would be able to vote on Income Tax Act issues and those who held a driver’s licence couldn’t vote on issues related to the financial aspects of the Highway Traffic Act.

carol.sanders@freepress.mb.ca

Carol Sanders
Legislature reporter

After 20 years of reporting on the growing diversity of people calling Manitoba home, Carol moved to the legislature bureau in early 2020.

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