Province defends ‘random process’ for selecting pot retailers

After the provincial government received roughly 1,350 submissions for cannabis retail stores in Saskatchewan, 17 of the 51 permits were shared among just five different companies.

That means one-third per cent of stores legally selling cannabis in the province will belong to five companies, despite there being 270 times more submissions to run a store. Proponents had one chance at a permit in a lottery in each municipality, according to Saskatchewan Liquor and Gaming Authority Minister Gene Makowsky.

“It was a random process, random draw and that’s what came out of the draw,” said Makowsky, who added the process is like a home lottery or and lottery system used to determine draft orders in pro sports.

“It’s not always what the numbers might entail. So again, random draw, transparent process,” Makowsky said.

KPMG accounting oversaw the lottery and is to release a fairness report on the process next week.

‘LACK OF TRANSPARENCY’

NDP Justice critic Nicole Sarauer said, “There has been a lack of transparency with respect to this process” and called on the province to make the full fairness report public.

She also criticized the province for not doing more to give a “leg up” to local businesses — one-third of the successful companies are based outside of Saskatchewan.

In Regina, 157 applicants were entered into the lottery for six permits. One of those permits went to Dwayne Anderson, and another went to Jill Anderson. Both have the same lawyer listed as their official contact. Any relationship between the two Andersons could be immediately confirmed.

The probabilities of winning a licence in Regina was 3.8 per cent. The probability of two people who are related but apply as separate entities winning is about onetenth of one per cent.

“I’m not aware of that situation. It would be two separate businesses, whether they have the same lawyer or what have you, I’m not aware of that situation,” Makowsky said, before adding “we can look into that.”

The lawyer representing both of the Andersons could not be reached for comment.

None of the names listed as contacts for the companies appeared in donation records to the Saskatchewan Party.

Although many applicants hoping to open a retail location are one step closer to doing so, they will still have to go through a “character test” from the government.

Applicants already proved they have the financial assets available, as well as the ability to track cannabis products.

SLGA president Cam Swan said there are multiple factors to determine whether or not someone had “good character.”

He said someone operating an illegal cannabis retail location would not necessarily fail the character test if no charges have been laid.

The successful proponents now have 45 days to begin their permitting process. Permits dictate the stores start operating within 12 months of cannabis legalization, expected later this year.

Makowsky told reporters the province doesn’t expect marijuana to be legal, or commercially available, until at least Aug. 7.