Khan removes MLA from critic role after ethics breach

Progressive Conservative Leader Obby Khan has dumped Jeff Wharton from his shadow cabinet after he violated the conflict of interest act in the dying days of the PC government in 2023.

“When I spoke to MLA Wharton, his reaction was one of remorse and of sincere apology towards me and the party in Manitoba,” Khan told reporters Thursday after the member for Red River North made a public apology in the chamber for violating the caretaker convention that prevents outgoing governments from making major decisions.

“I could see that he felt terrible but he understood my decision,” the newly appointed PC leader said of his decision to remove Wharton from the mining critic role.

Wharton did not take questions from reporters Wednesday or Thursday about why he disregarded the caretaker convention and the advice of the clerk of the executive council and urged two cabinet ministers — unsuccessfully — to issue a licence for a controversial sand mine project in Manitoba.

In the legislature, Wharton said he committed to ethics commissioner Jeffrey Schnoor that he’d apologize publicly after he, former premier Heather Stefanson and deputy premier Cliff Cullen were found to have violated the conflict of interest act. Schnoor recommended fines of $18,000 for Stefanson, $12,000 for Cullen and $10,000 for Wharton.

“As a minister of the Crown it was my duty to act in the interests of Manitobans, which is what I always endeavoured to do. I took my obligations very seriously during my time in cabinet… I continue to do so today,” Wharton said before parsing a section of the ethics report.

“It is commonplace for members of the legislative assembly — especially cabinet ministers — to take actions to further the interest of others. That’s what members and governments are expected to do,” cited Wharton.

He skipped the lines in the report that said members must not take such actions if they will “further the interests of others improperly.

”By attempting to have the project licence issued in the transition period without the consent of the incoming NDP government,” Wharton, Cullen and Stefanson breached the act, the report said.

Wharton told the house that the breach occurred because of the timing of his actions while the caretaker convention was relevant.

“I have learned from it, and I am committed to helping others learn from it as well. I apologize for any of my conduct which was found to fall short of my parliamentary obligations or personal standard of ethics.”–MLA Jeff Wharton

“It was never my intention to breach any convention or parliamentary tradition. However, the ethics commissioner has ruled on this matter and I accept that ruling. I fully co-operated with the investigation, I have learned from it, and I am committed to helping others learn from it as well. I apologize for any of my conduct which was found to fall short of my parliamentary obligations or personal standard of ethics… I will do better.”

Wharton, the only one of the three to still hold political office, urged Premier Wab Kinew to call a vote on the ethics commissioner’s recommended penalties in the legislative assembly. Members must vote on the recommendations within 10 sitting days of the tabling of the report. A simple majority can decide to implement the fines or not. There are fewer than 10 sitting days left before the house rises June 2 for the summer recess until Oct. 1.

Kinew refused to hold a vote and settle the matter, demanding the PCs answer questions about breaking the conflict rules, and who stood to benefit from the Sio Silica project being licensed.

“There are serious unanswered questions (about) whether stocks were held by ministers of the Crown,” Kinew told the house.

Khan tried to pivot and asked the government to explain problems with the rollout of the $1,500 Homeowners Affordability Tax Credit, but Kinew didn’t bite.

The premier called on the Tories to answer questions about whether any former cabinet ministers and sitting MLAs held Sio Silica stock through brokerages or third parties.

Former MLAs Kevin Klein and Rochelle Squires — who both lost their seats in the Oct. 3, 2023 election — said they were urged by Wharton on Oct. 12 to license the Sio Silica project but refused. Klein said Wednesday that Wharton should resign for breaking the caretaker convention.

“There are serious unanswered questions (about) whether stocks were held by ministers of the Crown.”–Premier Wab Kinew

Squires thanked the ethics commissioner for a “thorough investigation and report.” She said she hoped lessons would be learned “and the egregious actions outlined in his report are never repeated.”

The former cabinet minister said in email: “politicians are rightfully held to higher moral and ethical standards; everyone loses when our elected officials don’t adhere to these principles.”

She said she was out of the country and hadn’t heard from Wharton but “would accept the apology alluded to in Schnoor’s report. Change begins with accountability.” Neither she nor Klein responded to a request for comment on Wharton’s apology.

As for the ethics violation, it ranks among the top-10 political scandals in Manitoba history, political studies Prof. Christopher Adams said.

The University of Manitoba professor contributed a list of top-10 Manitoba political scandals to a book of lists. While it doesn’t rank as high as embezzling funds or alleged drug smuggling, “if I were writing that list now, I’d put that in the list — maybe No. 8 or 9,” Adams said.

He said it’s not a good look for the Tories, past or present.

“I think it’s an embarrassment for the past premier and members of her cabinet,” he said. And it won’t make things easier for Khan, who narrowly eked out a leadership win last month. Adams said the NDP government has been handed fodder it can use for some time against the opposition.

“I think it’s an embarrassment for the past premier and members of her cabinet.”–Prof. Christopher Adams

It could also set a “very strong precedent” if MLAs accept the ethics commissioner’s report and fines are levied, said a former clerk of the executive council.

“That will make conflict of interest and ethics issues in Manitoba very much like a third rail you do not touch,” said David McLauglin, who was appointed by Brian Pallister, the former premier whose government introduced the new legislation.

“That will make Manitoba’s democracy and governance stronger. And that’s a good thing,” McLauglin said.

carol.sanders@freepress.mb.ca

Carol Sanders
Legislature reporter

Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol.

Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.