Tory cleared of ethics breach
MLA’s failure to disclose lawsuits broke rule, but called a mistake
Peter Sandhu breached the Conflicts of Interest Act when he failed to disclose six lawsuits against his homebuilding company, an investigation by the province’s ethics commissioner has found, but the Edmonton MLA won’t face any sanctions.
The findings were detailed in one of two reports released Thursday by ethics commissioner Neil Wilkinson into Sandhu’s conduct after allegations surfaced the Edmonton-Manning MLA had used his position to lobby for changes to the Builders’ Lien Act and had failed to disclose the half-dozen lawsuits against his company.
Opposition critics slammed the findings, saying they call into question the effect and purpose of the commissioner’s office and led to serious concerns over ongoing ethics probes, including one involving Premier Alison Redford.
The ethics commissioner’s office wouldn’t comment Thursday, saying the investigations “speak for themselves.”
In the non-disclosure case, Wilkinson found that while Sandhu did breach the act by failing to report the cases against his company, New View Homes Ltd., there was “no deliberate effort to mislead.” Instead, Wilkinson found Sandhu believed the cases would soon be settled, followed bad advice from his lawyer, had made a mistake and ultimately “learned his lesson,” concluding no sanctions be laid.
That conclusion puts Wilkinson “in a backward position,” NDP MLA David Eggen said. “He is an apologist here ... when he should be a public advocate.”
Liberal Leader Raj Sherman questioned why Sandhu didn’t receive even a “slap on the wrist,” despite six clear violations of the act.
“The question is, what is the purpose of the office of the ethics commissioner,” Sherman asked.
Sandhu resigned from the Tory caucus in mid-May and now sits as an independent. He asked Wilkinson to launch the review the day before a news report about the lawsuits against his company aired.
That probe was broadened last month after the NDP and Wildrose separately called for a review of Sandhu’s conduct following a CBC report on documents showing Sandhu lobbied Service Alberta to make changes to the Builders’ Lien Act that could benefit his business.
The ethics commissioner found that while Sandhu’s persistent lobbying was illadvised and “created an appearance of conflict of interest … it did not amount to an improper use of his office.”
Sandhu would have been in breach of the law only if “his persistence had been directed at encouraging government officials to take action which only affected NewView Homes,” Wilkinson found.
Eggen called that a “deeply flawed” interpretation of the act that sets a bad precedent.
The rulings have left the act a “total joke, as the interpretation is now to protect the political interests of MLAs rather than protecting the integrity of our legislature,” Wildrose MLA Shane Saskiw said.
Sandhu didn’t grant interviews Thursday, instead releasing short statements on social media.
“Pleased with the Ethics Commissioner’s Report that clears my name,” Sandhu wrote in a Facebook post that went on to thank his supporters.
PC government whip Steve Young said in a statement he was “encouraged” by the findings and that “caucus will consider any request” by Sandhu to be reinstated.
Sandhu’s spokeswoman said he hasn’t yet decided whether or not he will ask to rejoin caucus.
Critics also raised questions about the outcome of an ongoing ethics probe into whether Redford, during her time as justice minister, was in a conflict of interest when she played a part in selecting which law firms the province should hire to pursue the lawsuit against big tobacco to recover health-care costs. Redford’s ex-husband, a political ally, is a partner in a Calgary firm that is part of the International Tobacco Recovery Lawyers, which won the contract.
Eggen said the findings cast doubt on whether Wilkinson, who has ties to the PC party, will conduct a thorough investigation into Redford’s actions, saying the legislation should be strengthened.
An all-party MLA committee is currently reviewing Alberta’s Conflict of Interest Act, an exercise that occurs every five years.