NDP vows to delay bill it says creates loophole to hide wealth

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This article was published 16/04/2023 (876 days ago), so information in it may no longer be current.

The battle between the NDP and Tories continued Sunday, with the New Democrats vowing to delay a bill they say creates a loophole for politicians such as Premier Heather Stefanson to hide their wealth.

However, Manitoba’s Progressive Conservatives say the proposed bill would broaden the scope of accountability, not limit it.

If Bill 20, also known as The Conflict of Interest (Members and Ministers) Amendment Act, becomes law, provincial officials will be able to circumvent their requirement to disclose assets by entrusting them to another person or corporation, the NDP caucus said in a release.

“People who hold the highest political office in our province shouldn’t be able to hide millions in investments from the people of Manitoba,” NDP finance critic Adrien Sala said. “We can’t let the premier rewrite our laws to create loopholes for millionaires.”

The bill, in which the Tories propose an amendment to the political disclosure process, saw its first reading at Manitoba’s Legislative Building on March 7. If passed, it will replace the Legislative Assembly and Executive Council Conflict of Interest Act, which currently governs the disclosure process.

According to an explanatory note attached to the legislation, the current act focuses on conflicts arising from financial interests, while the new act would minimize the likelihood of conflicting interests by allowing politicians to place their assets in a trust.

In that case, securities or stocks entrusted to another person or company would be excluded from ministers’ disclosure statements. All reports concerning gifts, benefits and private air travel would be made public, and political officials would still be required to disclose assets in their own names.

Sala described the bill as deceptive.

“We believe Manitobans deserve an open and transparent government, not one that rigs the rules to favour those at the top. Manitobans expect a higher level of transparency,” he said.

The bill would come into effect the day after the October provincial election, assuming it passes beforehand. The NDP has vowed that will not happen.

A spokesperson from Premier Heather Stefanson’s office fired back at the New Democrats, calling their assessment of the bill “false posturing” and “another desperate attempt by the NDP to distract from (Leader Wab Kinew’s) record — one of dishonesty and inappropriate behaviour.”

The spokesperson defended Bill 20, saying it will strengthen the current act and includes amendments requested by the Manitoba Conflict of Interest Commissioner

They also accused the party of hypocrisy.

“Many of the NDP members are significantly wealthy, including their leader, yet they try to mislead Manitobans otherwise,” the spokesperson wrote in an email.

“By killing these changes… the NDP is limiting the public disclosure of gifts to elected officials, allowing records to be destroyed and weakening blind trust provisions. They are also questioning the role of an independent Conflict of Interest Officer. It begs the question, what are the NDP trying to hide?”

Sunday’s attacks are the latest in an escalating battle between the Tories and the Opposition, who have exchanged slander several times this week.

The New Democrats have repeatedly sought to bring the premier’s personal wealth to the attention of voters, including on Thursday, when Sala demanded she speak about her dealings with Manitou Investment Management Ltd., a private wealth management firm.

According to the Portfolio Management Association of Canada, private individuals are required to invest a minimum $5 million to be a client of the firm, but the premier’s office said she has invested nowhere near that, calling the figure a “guideline.”

Under the current conflict of interest legislation, Stefanson is required to disclose her assets and their disposal, but does not have to include their value.

Stefanson previously violated the disclosure agreement when she failed to report the sale of three properties totalling $31 million. A Court of King’s Bench judge determined she would not face punishment, finding the violation was “inadvertent” and “due to inattention.”

Also on Thursday, Sport Minister Obby Khan accused Kinew of using profanity and shoving him during an exchange at an event at the Manitoba legislature. Kinew agreed there was a tense handshake between the two men, but said he did not swear at or push Khan.

The Tories frequently point to past convictions against Kinew for assault and drunk driving.

Kinew pleaded guilty to four criminal charges, including assaulting a taxi driver and refusing to take a breathalyzer test when suspected of driving under the influence when he was 22. He was fined $1,400.

tyler.searle@freepress.mb.ca