No conflict with donation to Ashton

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This article was published 26/09/2015 (3743 days ago), so information in it may no longer be current.

An independent analysis shows Infrastructure and Transportation Minister Steve Ashton was not in a conflict of interest when he accepted donations from the proponents of Tiger Dam flood-control barriers.

Ashton said he sought the formal opinion from the province’s conflict-of-interest commissioner, Ron Perozzo, in June when the allegations were raised in the Winnipeg Free Press.

Ashton asked Perozzo for an opinion on whether a contribution to a leadership campaign — Ashton ran for the top spot in 2009, losing to Premier Greg Selinger — would create a conflict of interest.

Perozzo said it would not.

“In my opinion, a contribution to a leadership contestant made in accordance with the terms of the Election Financing Act would not be a fee or commission paid to a person for representing the interests of another person,” Perozzo said.

Perozzo submitted his written opinion to Ashton July 15 and, following procedure, Ashton filed the four-page letter to the clerk of the legislative assembly about one week later.

Ashton told the Free Press he decided to release Perozzo’s letter following comments made last week by Opposition Leader Brian Pallister on the Tiger Dam matter and on other untendered contacts by the province to International Flood Control, the maker of the water-filled tubes.

“When I heard some of the comments last week, and in particular when it’s directed at people outside of the political arena — I understand in politics that you have to be accountable — it just struck me that really, Brian Pallister went too far,” Ashton said Thursday.

“I think he’s going to have to deal with some of his… reckless comments.”

Progressive Conservative house leader Calvin Goertzen said Perozzo didn’t address the issue of the government’s handling of an untendered $5-million contract for Tiger Dam to supply the equipment to five First Nations.

“These are the issues that everyone is concerned about,” Goertzen said. “I think Mr. Ashton has just thrown up a smoke screen.

“It’s like Mr. Ashton asked a question that he already knew the answer (to).”

Last June, the Free Press reported that Ashton was the subject of a whistleblower complaint. It was alleged he tried to secure an untendered $5-million contract for Tiger Dam outside the government approval process, on behalf of five flood-prone First Nations.

The sole distributor of Tiger Dams in Manitoba is restaurateur Peter Ginakes, a personal friend and financial contributor of Ashton’s. Ginakes and his sister Phyllis donated a total of $6,000 to Ashton and the NDP. In 2011-12, the Ginakeses donated more than $5,000 to the NDP and Steve Ashton, including a January 2012 donation to Ashton’s daughter, Niki Ashton, in her federal NDP leadership bid.

It’s believed the government’s handling of the issue was one of the reasons five cabinet ministers resigned last year, forcing Premier Greg Selinger to defend his leadership against challengers Theresa Oswald and Ashton.

‘It’s a legitimate criticism. I’m quite prepared to be held accountable through the ombudsman, through the legislature and through the people of Manitoba. What I won’t apologize for, and one I don’t think we as a government should apologize, is really trying to forge a relationship with First Nations’

— Infrastructure and Transportation Minister Steve Ashton

Ombudsman Charlene Paquin is reviewing how the government handled the file. Her report is due this fall. Ashton and the premier have said the government did nothing wrong and in fact, sent the purchase to tender. A contract has not been awarded. The First Nations secured the Tiger Dam equipment using federal funding instead.

Ashton said despite Perozzo’s opinion, he acknowledged there are still “issues of optics” in the handling of the file.

“It’s a legitimate criticism,” he said. “I’m quite prepared to be held accountable through the ombudsman, through the legislature and through the people of Manitoba. What I won’t apologize for, and one I don’t think we as a government should apologize, is really trying to forge a relationship with First Nations.”

Ashton also said the government is fully co-operating with the review.

Last week, Pallister accused the government of withholding details of untendered contracts for flood barriers, including several to International Flood Control. “It begs the question how many more untendered contracts has the government entered into that are not yet available to the public,” Pallister said. “Manitobans are right to ask what else are they covering up? Is it just flood-fighting equipment that they don’t want tell us about?”

Ashton said Pallister’s accusations are spurious. “When it gets to this level in questioning integrity, I think (Pallister) went too far,” Ashton said. “When you’re in opposition, you have a responsibilty to check your facts.”

Ashton said he expects the issue to resurface when the legislature resumes sitting Oct. 20.

bruce.owen@freepress.mb.ca