Tory MLA Nesbitt apologizes for breaking conflict law

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This article was published 05/11/2024 (306 days ago), so information in it may no longer be current.

A Progressive Conservative MLA has apologized for violating Manitoba’s conflict of interest law.

“I want to apologize to the assembly and to all Manitobans for this oversight,” Riding Mountain MLA Greg Nesbitt said outside the chamber Tuesday after ethics commissioner Jeffrey Schnoor released his report into the case. He didn’t recommend a penalty.

Nesbitt has an interest in Russell Inns Ltd., which has a contract with the provincial government. That’s a breach of the Conflict of Interest (Members and Ministers) Act that came into force Oct. 4, 2023. It says that MLAs must not have an interest in a private corporation that is a party to a contract with the government or a government agency under which the corporation receives a benefit.

MLAs must also list contracts with the government in their disclosure statements, which Nesbitt failed to do, commissioner Jeffrey Schnoor said in a report released Tuesday.

Nesbitt’s shares in the Russell Inns group of companies are non-voting and held as a form of security, Schnoor’s report said.

“He has no role or voice in its activities, and so he was unaware of the existence of the contract,” the commissioner reported.

Nesbitt told reporters he sold his shares in 2018 and has received monthly payments as part of an 11-year buyout deal.

“I take full responsibility for not knowing about, and therefore not disclosing, the contract that exists between the Government of Manitoba and Russell Inns Ltd.,” said the MLA who was first elected in 2016.

“I have had extensive conversations with the commissioner every year since I was elected,” Nesbitt said. “Prior to the new act coming into place, I didn’t have to disclose any contracts,” he said. “It’s my responsibility to read the act and disclose any contracts. I didn’t do that and I take full responsibility for that.”

Nesbitt was given the option of divesting his interest in the group of companies or seeking the commissioner’s approval to waive the prohibition. He chose the latter, and his request was granted. The commissioner advised Nesbitt to take steps to have the Russell Inns group of companies advise him if any of them enter into contracts with the Manitoba government in future.

The ethics investigation was launched after NDP MLA Mike Moyes asked the commissioner on Aug. 9 to probe Nesbitt’s business dealings.

Earlier, an ethics investigation into NDP MLA Ian Bushie was requested by Nesbitt. Bushie was also found to have contravened the law because he had an interest in a business that had a government contract, and hadn’t disclosed it.

The cabinet minister’s family business, Grandpa George’s convenience and gas station at Hollow Water First Nation, had a contract to provide groceries and supplies to workers who fight wildfires in the area for many years, and it was renewed April 1, which is a violation of the law.

In a report Sept. 19, the ethics commissioner said Bushie’s contraventions were inadvertent and noted he “apologized and accepted responsibility for his error.” He didn’t recommend a penalty in that case, either.

Although he wasn’t required to, Bushie announced he was selling the business.

carol.sanders@freepress.mb.ca

Ethics commissioner’s report