Ethics Commissioner says Riding Mountain MLA conflict of interest ‘inadvertent’

The business structure of a hotel company is to blame for a Manitoba MLA’s conflict of interest, but the breach won’t see him checking out of politics.

On Tuesday, Manitoba’s Ethics Commissioner Jeffrey Schnoor released a report detailing how Greg Nesbitt, PC MLA for Riding Mountain, was unaware he contravened the Members and Ministers Act due to “indirect” ties to Russell Inns Ltd.

The hotel company has a government contract worth $50,000 and Nesbitt has connections to the organization, which he disclosed, but did so without proper notification the business has government contracts.

The discovery of the partial disclosure came following a complaint from Riel NDP MLA Mike Moyes in August.

However, Schnoor says Nesbitt is not at fault, noting the business’ “complex ownership structure” is what is behind the violation, as while loosely involved, Nesbitt has no knowledge of the business’ day-to-day operations nor any power at the company.

“It is obvious that Mr. Nesbitt’s contraventions occurred as a result of inadvertence,” said Schnoor in the report. “He was unaware of the existence of the contract and it would be unreasonable to impose a penalty under the circumstances.”

Schnoor says the Riding Mountain MLA, first elected in 2016, has now been given a waiver of prohibition from the commissioner’s office and has been advised that he should work to have the Russell Inns group of companies advise him if entering into future government contracts.

The accusation against Nesbitt was the latest battle over disclosure statements that all Manitoba legislature members must file with the commissioner.

In June, Nesbitt accused NDP cabinet minister Ian Bushie of hiding the fact he had a contract with the provincial government that had recently been renewed. Bushie was the sole proprietor of a gas station and convenience store that was listed in April as having received a renewed provincial contract.

The ethics commissioner ruled in September that Bushie contravened the law but it was inadvertent and no penalty was needed. As with Tuesday’s ruling, the ethics commissioner said Bushie was not involved in day-to-day operations and was unaware of the contract.

–With files from The Canadian Press